Scopes 1, 2, and 3: how emissions inventory works in companies

The management of greenhouse gas emissions begins with an essential step: the emissions inventory. It is through this process that companies identify, quantify, and understand their primary sources of climate impact.

In this context, the classification of emissions into Scopes 1, 2, and 3 has become a global reference for organizing this information.

What is an emissions inventory

An emissions inventory is a systematic survey of an organization's greenhouse gas emission sources.

It allows for the identification of where the main emissions are located, the establishment of reduction priorities, and the monitoring of performance over time.

This process is fundamental for defining decarbonization strategies and building science-aligned targets.

What are Scopes 1, 2, and 3

The division of emissions into three scopes allows for a more structured and complete view of an organization's climate impact.

Scope 1: direct emissions

Refers to emissions from sources that are owned or controlled by the company.

Examples:

✓ combustion in owned equipment;

✓ use of fuels in company vehicles;

✓ industrial processes.

Scope 2: indirect energy emissions

Corresponds to emissions associated with the consumption of purchased energy.

Examples:

✓ electricity consumption;

✓ use of purchased steam or heating.

Scope 3: other indirect emissions

Includes all other emissions that occur throughout the value chain.

Examples:

✓ suppliers;

✓ transport and logistics;

✓ use of sold products;

✓ corporate travel.

In many cases, Scope 3 represents the largest share of an organization's emissions.

Why this classification is important

The division into scopes allows information to be organized in a structured way, identifying direct and indirect responsibilities, and guiding the definition of goals and strategies. Furthermore, this classification is widely used by initiatives such as the Science Based Targets initiative (SBTi), which requires consideration of these scopes in target validation.

Challenges in emissions management

Despite its importance, preparing an emissions inventory can involve challenges, especially regarding Scope 3.

Among the main challenges are:

✓ data availability and quality;

✓ complexity of the value chain;

✓ the need for partner engagement.

Overcoming these challenges is fundamental to building a consistent decarbonization strategy.

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The emissions inventory is the foundation for any climate strategy. Understanding Scopes 1, 2, and 3 is essential for structuring effective emission reduction actions and moving toward more sustainable management.

Technical Authorship

This content was developed by the Mitsidi content team based on the company’s experience in sustainability, energy efficiency, and decarbonization projects. The materials published in this section are prepared by the editorial team and reviewed by Mitsidi’s technical specialists.

About Mitsidi

Mitsidi is a specialist in sustainability, energy efficiency, and decarbonization, providing consultancy, research, training, and solution development for companies, buildings, and industries.

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