# Scope 1, 2, 3 - What should I include when reporting my emissions?

> Did you know? As a supplier, you can also use the Product Ecosystem to request scope 3 emissions from your sub-suppliers for free!

In responding to this question, you should also consider the customers that are requesting information from you and the type of products they buy from you.

In all cases, it is important for your customers to know the relevance of the products they are purchasing from you in terms of your overall GHG emissions. You can report this information by summing your Scope 1, 2 and 3 emissions.

**Scope 1 emissions**

Direct greenhouse gas (GHG) emissions occur from sources that are owned or controlled by the company. Direct GHG emissions are principally the result of the following activities undertaken by the company:

* Generation of electricity, heat or steam, resulting from the combustion of fuels in stationary sources such as boilers or furnaces;
* Physical or chemical processes, e.g. clinker production within a kiln during cement production activities.
* The transportation of materials, due to the combustion of fuels in company owned or controlled vehicles.
* Fugitive emissions, which arise from the intentional or unintentional release of GHG emissions, e.g. equipment leaks from joints or seals; HFC emissions from the use of refrigeration and air conditioning equipment.
* Direct CO2 emissions from the combustion of biomass are not included Scope 1 reporting, but can be reported separately.
* Scope 1 emissions only consider GHG emissions covered by the Kyoto Protocol (CO 2, CH4, N2O, HFCs, PFCs, SF6 and NF3). GHGs not covered by the Kyoto Protocol are reported separately from Scope emissions.

**Scope 2 emissions**

* Scope 2 accounts for GHG emissions from the generation of purchased electricity, heat, steam or cooling consumed by the company.
* Purchased electricity is defined as electricity that is purchased or otherwise brought into the organizational boundary of the company.
* Scope 2 emissions physically occur at the facility where electricity is generated.
* Indirect emissions classified under Scope 2 include transmission and distribution (T\&D) losses, and are reported by the company that owns or controls the T\&D network.
* In addition to accounting for GHG emissions associated with electricity, heat, steam or cooling brought in to the organizational boundary, accounting for Scope 2 emissions allows companies to assess the risks and opportunities associated with changing electricity and GHG emissions costs.

**Scope 3 emissions (optional)**

* This is an optional reporting category which allows for the treatment of all other indirect emissions (e.g. those occurring from the transportation of purchased fuels).
* These emissions occur as a consequence of activities of the company, but result from sources not owned or controlled by the company itself.
* If outside the organizational boundaries the following are Scope 3 indirect emissions:
  * Extraction and production of purchased materials and fuels;
  * Transport related activities;
  * Electricity-related activities not included in Scope 2;
  * Leased assets, franchises and outsourced activities (dependent on the consolidation approach taken);
  * Use of sold products and services, and;
  * Waste disposal.

Scope 1, 2 and 3 emissions are explained in greater depth in Chapter 4 of the [GHG Protocol Corporate Standard.](https://www.ghgprotocol.org/sites/default/files/ghgp/standards/ghg-protocol-revised.pdf)


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