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CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Environment

Kaveri Chemicals Ltd reports greenhouse gas emissions. Its diesel generators at its own plant emit 1,200 tCO2e, and the electricity it purchases from the grid is linked to 3,000 tCO2e. Under the GHG Protocol classification, how should these be reported?

Generator emissions are Scope 1 because they are direct emissions from company-controlled sources, while emissions linked to purchased grid electricity are Scope 2 as indirect energy emissions. Scope 3 is reserved for other value-chain emissions, so classifying purchased electricity there would be incorrect.

  1. ABoth as Scope 1
  2. BGenerators as Scope 1 and purchased electricity as Scope 2Correct
  3. CGenerators as Scope 2 and purchased electricity as Scope 1
  4. DGenerators as Scope 1 and purchased electricity as Scope 3

Explanation

Scope 1 covers direct emissions from sources owned or controlled by the company, such as its generators. Scope 2 covers indirect emissions from purchased electricity, steam, heat or cooling. Treating purchased power as Scope 3 is wrong because it has its own Scope 2 category.

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