How to calculate and reduce your company's CO2 emissions: Scope 1, 2, and 3 explained.
The Carbon Footprint is the total amount of greenhouse gases emitted directly or indirectly by an organization, product, or service, expressed in tonnes of CO2 equivalent (tCO2e).
The three emission Scopes
Emission Scopes in detail
| Scope | Type | Main sources | Concrete examples |
|---|---|---|---|
| Scope 1 | Direct | Owned or controlled sources | Gas boilers, company fleet, chemical processes, refrigerant gases |
| Scope 2 | Indirect (energy) | Purchased grid energy | Electricity, steam, district heating, cooling |
| Scope 3 | Indirect (value chain) | All other upstream and downstream sources | Raw materials, freight, employee travel, product use |
Typical corporate emissions breakdown
How it is calculated
The calculation follows the GHG Protocol, the most widely used international standard. For Scope 2, two approaches exist: location-based (average grid emission factor) and market-based (based on contracts and purchased GO). The method choice significantly affects the result.
Why it matters
Measuring your carbon footprint is the first step toward decarbonization. It is increasingly required by customers, investors, and regulations (CSRD, EU taxonomy). A credible emissions reduction plan can become a competitive advantage, especially in B2B sectors where client companies demand transparency throughout the supply chain.
Informational content by IPGS Energy. Information is reviewed as of the stated update date and does not replace a contractual, tax or regulatory assessment specific to an individual business.