# Scope 1, 2 and 3 Emissions

*ESG & Sustainable Finance — Finicade finance glossary*

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.

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.

**Also known as:** scope 3, greenhouse gas protocol, scope emissions

**Related terms:** [Carbon Footprint](https://finicade.com/glossary/carbon-footprint), [Net Zero](https://finicade.com/glossary/net-zero), [Science-Based Targets](https://finicade.com/glossary/science-based-targets), [CSRD](https://finicade.com/glossary/csrd), [TCFD](https://finicade.com/glossary/tcfd)

Source: https://finicade.com/glossary/scope-1-2-and-3-emissions