Skip to content

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

Kaveri Steel Ltd. reports emissions from the electricity it buys from the state grid to run its rolling mill. Under the GHG Protocol classification, how are these emissions categorised?

These emissions are Scope 2 under the GHG Protocol, because they are indirect emissions from purchased electricity consumed by the company. Scope 1 covers only direct emissions from sources the company owns or controls, and Scope 3 covers other value-chain emissions.

  1. AScope 1, as the company consumes the power
  2. BScope 2, as indirect emissions from purchased electricityCorrect
  3. CScope 3, as they arise in the value chain upstream
  4. DNot reportable, as the company does not generate the electricity

Explanation

Scope 2 covers indirect emissions from purchased electricity, steam, heating or cooling. Scope 1 covers direct emissions from owned or controlled sources, such as the company's own boilers. Scope 3 covers other value-chain emissions, so it does not fit here.

Did you get it right without looking?

One question tells you little. A timed set on Environment shows your real accuracy, how long you take and where you lose marks.

More Environment questions