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

Sundaram Textiles Ltd measures greenhouse gas emissions from its own boilers and company-owned vehicles, and also from the electricity it buys from the grid. Under the GHG Protocol classification, how are these two sources categorised?

Emissions from company-owned boilers and vehicles are Scope 1 direct emissions, while emissions linked to purchased grid electricity are Scope 2 indirect emissions. Scope 3 covers other value-chain emissions, such as suppliers, transport by others and product use, so it does not apply here.

  1. ABoilers and vehicles are Scope 1; purchased electricity is Scope 2Correct
  2. BBoilers and vehicles are Scope 2; purchased electricity is Scope 1
  3. CBoilers and vehicles are Scope 1; purchased electricity is Scope 3
  4. DBoth are Scope 2 because they relate to energy use

Explanation

Scope 1 covers direct emissions from sources owned or controlled by the company, such as boilers and company vehicles. Scope 2 covers indirect emissions from purchased electricity, steam, heating or cooling. Treating grid electricity as Scope 3 is wrong because Scope 3 covers other indirect value-chain emissions.

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