The GHG Protocol groups corporate emissions into three scopes. The structure clarifies where emissions occur and helps companies assign responsibility, collect data and set reduction targets.
Scope 1
Scope 1 includes direct emissions from sources owned or controlled by the company. Examples include fuel burned in boilers and vehicles, industrial process emissions and refrigerant leakage from company equipment.
Scope 2
Scope 2 covers emissions from purchased electricity, steam, heat and cooling. Companies may report location-based results using grid averages and market-based results reflecting qualifying contractual instruments. For procurement teams preparing for the current standards review, see our guide to Scope 2 and EAC procurement readiness.
Scope 3
Scope 3 includes other indirect emissions across the value chain. It spans purchased goods, freight, travel, product use, end of life and investments. For many companies, it is the largest and least directly controlled part of the footprint.
Why boundaries matter
An inventory needs a consistent organisational boundary and clear treatment of subsidiaries, joint ventures, leased assets and outsourced activity. Changes in structure should be tracked so year-to-year performance remains meaningful.
Data quality should also be visible. Supplier-specific primary data is stronger than spend-based estimates, but both can have a role in building a complete first inventory.
Turning the inventory into a plan
The purpose is not only to calculate a number. Companies use the inventory to identify hotspots, set targets, assign ownership and build reduction programmes.
Sentinel Earth's emissions strategy advisory connects GHG accounting with transition pathways, governance and practical reduction levers.
