What is Scope 1, 2, 3
Complete Guide to the GHG Protocol's Value Chain Emissions Framework
Developed by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD), the GHG Protocol Corporate Standard categorizes greenhouse gas emissions into Scopes 1, 2, and 3. While Scopes 1 and 2 capture operational control, Scope 3 accounts for 70% to 90% of an enterprise's total climate footprint.
Key Strategic Takeaways
Scope 1 captures direct combustion, Scope 2 covers purchased electricity, and Scope 3 spans the complete upstream and downstream value chain.
Scope 3 typically represents 70% to 90% of total emissions for industrial, retail, and technology companies.
Under the GHG Protocol Scope 2 Guidance, companies must report both Location-based and Market-based electricity numbers.
Engaging suppliers to collect primary activity data is mandatory to replace punitive spend-based proxy factors.
How EnviroWealth Delivers Complete Scope 1, 2 & 3 Accounting
Our carbon accounting engineers map your complete value chain across all 15 Scope 3 categories.
Do we have to calculate all 15 Scope 3 categories?
No. A company must conduct a Scope 3 materiality screening to identify which categories are relevant. Typically, 3 to 5 categories (such as Cat 1 Purchased Goods, Cat 4 Inbound Logistics, and Cat 11 Use of Sold Products) constitute over 90% of a company's total Scope 3 footprint.