GREENHOUSE GAS EMISSION BASELINES ■ 27level, rather than at a corporate level. So whether a company uses an equity
share approach or a control approach to establish its corporate inventory, it is
also encouraged to itemize emissions from facilities that it operates. Govern-
ments typically require reporting on the basis of operational control, either at
the facility level or at some consolidation over geographic boundaries.
Th e WRI/WBCSD also introduced the concept of scope of emissions,
enabling companies to distinguish between emissions from facilities that they
own or control and emissions that result from broader company activities
(table 2.3). Scope 1 emissions are those from sources such as boilers, furnaces,
and vehicles that are owned or controlled by the company (producer). Emis-
sions from electricity consumed by the company are in Scope 2 (consumer),
whereas other emissions that are a consequence of the company’s activities,
such as extraction and production of purchased materials, transportation, and
product use, are in Scope 3 (consumer). Th ese Scope 3 emissions do not neces-
sarily entail a full life-cycle assessment; they are a practical determination of the
main indirect emissions attributable to the company’s activities.
Th e WRI/WBCSD Scopes 1–2–3 framework has been adopted widely, with
small variations, by several organizations that seek to establish standards for
carbon accounting with a view toward future carbon trading. Examples of
some of these organizations include the California Climate Action Registry
(CCAR), the Chicago Climate Exchange, the Colorado Carbon Fund, and the
TABLE 2.3
Defi nition of Scope 1, 2, and 3 GHG Emissions
Scope 1: Direct GHG emissions
Direct GHG emissions occur from sources that are owned or controlled by the company,
such as emissions from combustion in owned or controlled boilers, furnaces, and vehicles
or emissions from chemical production in owned or controlled process equipment. (Direct
CO 2 emissions from combustion of biomass and GHGs not covered by the Kyoto Protocol
are not included in Scope 1.)
Scope 2: Electricity indirect GHG emissions
These are emissions from the generation of purchased electricity consumed by the
company. Scope 2 emissions physically occur at the facility where electricity is generated.
Scope 3: Other indirect emissions
Emissions in this optional reporting capacity are a consequence of the activities of the
company but occur from sources not owned or controlled by the company. Examples of
Scope 3 activities are extraction and production of purchased materials, transportation of
purchased fuels, and use of sold products and services.
Source: Adapted from WRI/WBCSD 2009, 25.