The minute
- Scope 1 is what the company burns directly: its fleet, its boilers, its generators
- Scope 2 is the energy it buys, essentially electricity, and in Brazil it is small because the grid is mostly renewable
- Scope 3 is everything else in the value chain and usually holds the large majority of the total
Why it matters: companies that report only scopes 1 and 2 tend to announce a small footprint and a cheap offset. The number that changes decisions is almost always in scope 3.
Scope 1: what you burn
Diesel in the company fleet, gas in the kitchen, fuel in a generator. It is the easiest to measure because there is an invoice for every litre, and the hardest to reduce because it usually requires replacing equipment.
Scope 2: what you buy as energy
Mainly purchased electricity. The Brazilian advantage appears here: with a grid dominated by hydro, wind and solar, the emission factor published by MCTI is a fraction of the American or German one, so the same consumption produces far less carbon.
Scope 3: everything else
Suppliers, freight, business travel, employee commuting, waste, use of the product sold and its disposal. It is split into fifteen categories by the GHG Protocol and, for most service companies and retailers, it is usually where the majority of the footprint lives, as the GHG Protocol notes.
Measuring it is harder because the data belongs to other people. The practical path is to start with the categories that are both large and measurable, usually freight, travel and purchased goods, and to declare the method used instead of pretending to a precision that does not exist.
Source: GHG Protocol Corporate Standard and Corporate Value Chain (Scope 3) Standard.
Frequently asked questions
What’s the difference between scope 1, 2 and 3?
Scope 1 is direct emissions the company burns itself, scope 2 is purchased energy, and scope 3 is everything else in the value chain, from suppliers to product use.
Which scope is the hardest to measure?
Scope 3, since it depends on data from suppliers and customers the company doesn’t control directly.
Do I need to report all three scopes?
It depends on applicable regulation and investor or client demand; scope 1 and 2 are the usual starting point.
Primary sources: GHG Protocol Corporate Accounting and Reporting Standard, revised edition (WRI/WBCSD, 2004); GHG Protocol Corporate Value Chain (Scope 3) Standard (WRI/WBCSD, 2011); Brazilian grid CO2 emission factors for corporate inventories (MCTI, SIRENE).
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