Finicade
🔍 Sign in
ESG & Sustainable Finance

Scope 1, 2 and 3 Emissions

Also called: scope 3, greenhouse gas protocol, scope emissions

Scope 1 is emissions a company produces directly, Scope 2 is from the energy it buys, and Scope 3 is everything else in its value chain — suppliers, transport, and customers using the product. Scope 3 typically dwarfs the other two, often 70–90% of the total, and is the hardest to measure and the easiest to omit. A carbon target that excludes Scope 3 usually excludes most of the problem.

← All ESG & Sustainable Finance terms