GHG Reporting Requirements
To properly report your greenhouse gas emissions, you must take into account your Scope 1, 2, and 3 emissions, as well as gross expenditure attributed to gas and energy consumption.
Let’s break them all down:
Scope 1
Scope 1 refers to emissions which are controlled directly by your organisation. Examples include gas burned in company vehicles, generators, and fuel needed for equipment.
Scope 2
Scope 2 are indirect emissions resulting from things your organisation has purchased. Examples include electricity, heating, and cooling units.
Scope 3
Scope 3 are other indirect emissions which result from your organisation’s activities. This can be split into upstream and downstream emissions. Think of upstream Scope 3 emissions as those resulting from producing your organisation’s products or services, and downstream as emissions coming from the use and disposal of those products and services.
Examples of upstream Scope 3 emissions include business travel, employee commutes, and any waste that is generated by employees or the company like plastic bottles or cardboard boxes. Examples of downstream Scope 3 emissions include franchises, investments, leased assets, and more.
Both the Sustainability Reporting Guide and the GHG Protocol provide comprehensive guidance on how to stay compliant with these reporting requirements.