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The GHG Protocol

Overview of the GHG Protocol and how it structures a company’s emissions into Scope 1, Scope 2, and Scope 3 , with clear definitions and examples of what each scope includes.

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Written by Support

The GHG Protocol is divided into 3 big categories: Scope 1, 2, and 3. Every Scope then has subcategories.

Scope 1 - Direct GHG emissions

Scope 1 includes direct GHG emissions from sources that are owned and/or controlled by the organisation carrying out its GHG assessment.
It is divided into 5 categories.

Category 1.1 - Stationary combustion

Emissions related to this category are caused by fuel consumption in stationary sources within the organisational boundary of the legal entity (i.e., the facilities it owns and/or controls) (e.g., boilers, furnaces, or turbines).

To estimate the GHG emissions linked to this category
, an activity-based approach is used. The total amount of energy consumed is multiplied by emission factors published by public bodies and agencies (e.g., IEA, EPA, DESNZ, the French Environment Agency, IPCC).

Category 1.2 - Mobile combustion

Emissions related to this category are caused by fuel consumption in mobile sources within the organisational boundary of the legal entity (i.e., the facilities it owns and/or controls) (e.g., cars, trains, or forklifts).

To estimate the GHG emissions linked to this category, an activity-based approach is used. The total amount of energy consumed is multiplied by emission factors published by public bodies and agencies (e.g., IEA, EPA, DESNZ, the French Environment Agency, IPCC).

Category 1.3 - Process emissions

Emissions related to this category are caused by physical or chemical transformations during industrial processes controlled by the company (e.g., limestone processing for cement production).
These emissions are accounted for via an activity-based approach.

Category 1.4 - Fugitive emissions

Emissions related to this category are caused by gas leaks resulting from the company's activities. For example, these include air conditioning refrigerant leaks, methane emissions caused by the decomposition of waste or nitrous oxide emissions caused by the use of fertilisers.For most companies, especially in the tertiary sector, these emissions are mainly caused by air conditioning refrigerant leaks. These emissions are estimated by using the total air-conditioned surface area. Computations can be improved by using the total amount of refrigerants needed to recharge the AC system.For other direct fugitive emissions, mainly in the industrial sector, gas leaks are estimated from the total amount of gas used in the process.

Category 1.5 - Land-use change and land-use management

Emissions related to this category are caused by land-use change and land-use management (e.g., deforestation for agricultural purposes, construction of roads, car parks and buildings, and manure and fertiliser use).

These emissions are estimated using the total affected surface area (expressed in square metres or square feet). A more in-depth analysis and study can be carried out to improve the estimation.

Scope 2 - Indirect GHG emissions related to energy use

These are indirect emissions induced by the production of electricity, steam, heat or cooling used for activities and processes within the organisational boundary of the legal entity.
Scope 2 is divided into 2 categories.

Category 2.1 - Purchased electricity

Emissions of this category are related to the generation of electricity (fossil, nuclear or renewable power) outside the legal entity's organisational boundary.
Upstream emissions are not taken into account in this category but in category 3.3 (e.g., extraction and transport of fuels, construction of the power plant, network losses, etc.).
To estimate the GHG emissions linked to this category, an activity-based approach is used. The total amount of energy consumed is multiplied by emission factors published by public bodies and agencies (e.g., IEA, EPA, DESNZ, the French Environment Agency, IPCC).
Emissions can also be estimated by using the average energy consumption per m² (or square foot) per building type (office, warehouse, data centre, housing, etc.).

Category 2.2 - Purchased heat, steam, and cooling

Emissions of this category are related to the consumption of energy (other than electricity) that is produced outside the legal entity's organisational boundary (e.g., boilers).
Upstream emissions are not taken into account in this category but in category 3.3 (e.g., extraction, transport and processing of fuels, construction of the power plant, etc.).
The method used to compute these emissions is the same as for category 2.1.

Scope 3 - Indirect emissions

These emissions are non-energy-related indirect GHG emissions that occur in a company’s value chain, i.e., that are induced by upstream and downstream operations and activities outside the organisational boundary of the legal entity.
Scope 3 is divided into 15 categories.

Category 3.1 - Purchased goods and services

GHG emissions related to this category result from the extraction, production, and transportation of goods and services purchased or acquired by the reporting company in the reporting year, not otherwise included in categories 3.2 to 3.8.

  1. Purchases of products
    Product-related emissions are estimated via a monetary approach, using the carbon intensity of the supplier or of the sector of activity, or by using product-specific monetary emission factors.
    Accuracy can be improved by implementing an activity-based approach, using other metrics and flows (quantity, tonnes, litres, etc. of purchased products; raw materials used to manufacture the product; energy used in the industrial process; life cycle assessment, etc.).

  2. Consumable purchases
    Emissions related to consumable purchases are automatically computed via a monetary approach: monetary ratios of food purchases, paper, plastic, metals, etc. are included in Greenly's database.
    Accuracy can be improved via an activity-based approach (by specifying the quantities consumed). An activity-based approach will be implemented as a priority for the most important sources of GHG emissions.

  3. Raw material purchases
    Emissions related to the production of raw materials are computed using life cycle assessments (LCAs). These emissions are then divided by the price of the raw material; a monetary emission factor is estimated, and calculations can be automated.
    However, for the purchase of raw material, it is preferable to use an activity-based approach and multiply physical quantities and flows (kg/lbs, litre/gallon, etc.) by activity EFs.

  4. Purchases of services
    As activity-based data resulting from activities and operations of service companies are very diverse, monetary emission factors are used to estimate total emissions related to these activities. Emissions are computed by multiplying the amounts spent by a monetary emission factor (in kgCO₂e/currency).
    These emission factors are computed using two methods:

    • Carbon intensity of the service provider. When the service provider reports and discloses their GHG emissions publicly or shares data directly with Greenly (via Greenly Supplier Engagement), total emissions are divided by the company's turnover, and a monetary ratio is computed.

    • Carbon intensity of a business sector. For companies that do not publish a GHG assessment, the carbon intensity of the business sector is used instead. This method is widely used for MSMEs, who do not often share information on their environmental impact. The data used comes from studies carried out by Greenly or from public databases. The accuracy can then be improved by engaging service providers in the process or by using other metrics (e.g., number of FTE).

      1. Focus on digital services
        Total GHG emissions induced by digital services are estimated via a monetary approach, using either the carbon intensity of the service provider or that of the sector (data centre, IT licence, SaaS, video conferencing, web advertising, etc.).
        Accuracy can be improved by carrying out an activity-based study. Greenly has become a true expert in this field and can compute the carbon impact of digital products, particularly that of data centres and cloud services, with great accuracy. Indeed, a specific study can be done using the type of storage, cloud computing and processing power; the amount of data transfers, etc.; and the country where resources and data centres are located.

Category 3.2 - Capital goods

Emissions related to this category are caused by the manufacturing of the company's fixed assets: buildings and other infrastructures, vehicles, machinery, IT equipment, furniture, etc.

  1. Building 1.Construction
    Emissions related to the construction of a building are estimated by using an average kgCO₂e per square metre (or square foot) ratio for each building type (office, housing, data centre, warehouse, etc.). These ratios are estimated via emission factors that are provided by public agencies and bodies. Total emissions are then amortised over 50 years.

  2. Renovation
    Renovation-related emissions are amortised over 10 years and are accounted for using a monetary approach. A more in-depth study can be carried out to gain accuracy.

  3. IT equipment
    IT-related emissions are computed via an activity-based approach using data provided by the organisation (IT equipment inventory). Average emission factors by type of equipment and the latest life cycle assessments published by manufacturers (Apple, Dell, Lenovo, Boavizta, etc.) are included in Greenly's database. Therefore, a high level of accuracy can be obtained for IT equipment GHG emissions.

  4. Vehicle fleet
    Emissions related to the manufacturing of vehicles are computed based on the number and type of vehicles used.
    Accuracy can be improved when manufacturers publish life cycle assessments of their vehicles.

  5. Furniture
    For most cases, furniture-related GHG emissions account for a very small part of the organisation's total emissions. Therefore, to estimate these emissions, a kgCO₂e per employee ratio is used.
    Accuracy can be improved by collecting and using additional data.

Category 3.3 - Fuel- and energy-related activities not included in Scope 1 or Scope 2

GHG emissions related to this category result from the extraction, production, and transportation of fuels and energy purchased or acquired by the reporting company in the reporting year not already accounted for in scope 1 or scope 2, i.e., upstream emissions of purchased fuels, upstream emissions of purchased electricity, transmission and distribution losses, and generation of purchased electricity that is sold to end users.
To estimate the GHG emissions linked to this category, an activity-based approach is used. The total amount of energy consumed is multiplied by emission factors published by public bodies and agencies (e.g., IEA, EPA, DESNZ, the French Environment Agency, IPCC).

Category 3.4 - Upstream transport and distribution

GHG emissions related to this category result from:

  • Transportation and distribution of products purchased by the reporting company in the reporting year between a company’s tier 1 suppliers and its own operations (in vehicles and facilities not owned or controlled by the reporting company)

  • Third-party transportation and distribution services purchased by the reporting company in the reporting year (either directly or through an intermediary), including inbound logistics, outbound logistics (e.g., of sold products), and third-party transportation and distribution between a company’s own facilities

  • Transportation and distribution of products sold by the reporting company in the reporting year when the cost of transportation is borne by the reporting company.
    To estimate the GHG emissions linked to this category, a monetary approach is implemented using specific monetary emission factors for each mean of transport.
    Accuracy can be improved by implementing an activity-based approach: emissions are computed using the total distance travelled, the weight transported and the type of vehicle and fuel used.

Category 3.5 - Waste generated in operations

Emissions related to this category are caused by the transport, treatment and disposal of waste (incineration, compost, landfill, recycling, etc.) generated by activities and operations within the organisational perimeter of the legal entity.
Waste-related emissions are accounted for in different ways. In most cases, these GHG emissions represent a very small part of the organisation's total emissions. Therefore, a kgCO₂e per employee ratio is used. Accuracy can be improved by collecting further data: the weight and type of waste generated by the company.
Emissions related to the treatment and disposal of industrial and construction waste are systematically computed by collecting data on the type and weight of waste generated.

Category 3.6 - Business travel

Emissions related to this category are caused by employees travelling by plane, train, car, taxi, etc. or public transport for business purposes.
To initially estimate the GHG emissions linked to this category, a monetary approach is implemented using specific monetary emission factors for each mean of transport.
Accuracy can be improved by implementing an activity-based approach: emissions are computed using the total distance travelled and the mode of transport.

Category 3.7 - Employee commuting

Emissions related to this category are caused by commuting (car, public transport, motorcycle, moped, electric bicycle, etc.)
These emissions are estimated using an employee questionnaire sent to all employees of the organisation. For non-respondents, an automatic extrapolation is computed.

Category 3.8 - Upstream leased assets

GHG emissions related to this category result from the operation of assets leased by the reporting company in the reporting year and not included in scope 1 and scope 2.
For example, leased vehicles that are not under the operational control of the reporting company.
These emissions are computed using the expenses found in the general ledger of the organisation. An activity-based approach can also be implemented to gain in accuracy.

Category 3.9 - Downstream transport and distribution

GHG emissions related to this category result from the transportation and distribution of products sold by the reporting company in the reporting year between the reporting company’s operations and the end consumer (if not paid for by the reporting company), including retail and storage (in vehicles and facilities not owned or controlled by the reporting company).
The reporting company does not directly pay for the transport; hence, only an activity-based approach is used to compute these GHG emissions.

Category 3.10 - Processing of sold products

GHG emissions related to this category result from the processing of intermediate products sold in the reporting year by downstream companies (e.g., manufacturers).
Emissions are computed using the average energy consumption needed in the process and the country where the energy is produced and consumed (the carbon intensity of electricity varies depending on the country).
To include these emissions in the platform, a more in-depth study needs to be carried out.

Category 3.11 - Use of sold products

Emissions related to this category are caused by the production of energy and raw materials that are consumed throughout the life of the sold products.
Depending on the sold product, different methods exist.

  1. Digital products and websites
    Emissions are induced by the power consumption of terminals and networks (cloud computing, data transfers, data centres, storage, etc.) used by end-users. These emissions are computed using the total time spent (in hours), the country where the terminals and networks are located (the carbon intensity of electricity varies depending on the country) and the estimated average energy consumption per hour. Network traffic emissions are estimated using the total amount of transferred data.

  2. Energy-consuming products
    Emissions are induced by the energy consumption of sold products. These emissions are computed using the average energy consumption per product and the country where the energy is produced and consumed (the carbon intensity of electricity varies depending on the country).

Category 3.12 - End-of-life treatment of sold products

GHG emissions related to this category result from waste disposal and treatment of products sold by the reporting company (in the reporting year) at the end of their life.
Emissions related to the treatment and disposal of the sold products are computed by collecting data on the type and weight of waste generated.

Category 3.13 - Downstream leased assets

GHG emissions related to this category result from the operation of assets owned by the reporting company and leased to other entities in the reporting year, not included in scope 1 and scope 2.
Emissions resulting from the energy use of these assets are estimated in the same way we would estimate for Scope 1 or 2 emissions.

Category 3.14 - Franchises

GHG emissions related to this category result from the operation of franchises in the reporting year, not included in scope 1 and scope 2.

Category 3.15 - Investments

Emissions related to this category are induced by activities and projects financed by the legal entity.
We have developed a specific module to estimate PCAF-aligned financed emissions.

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