The GHG Protocol Corporate Standard — the world's most widely used greenhouse gas accounting framework — organises corporate emissions into three "scopes." Understanding which emissions fall into each scope is essential for accurate carbon accounting, BRSR compliance, and setting credible net-zero targets.
Scope 1: Direct Emissions
Scope 1 emissions are direct GHG emissions from sources owned or controlled by the reporting company.
Examples
- Combustion in owned boilers, furnaces, and turbines
- Company-owned vehicle fleets (petrol, diesel, CNG)
- On-site manufacturing processes and chemical reactions
- Fugitive emissions from refrigerants and air conditioning
- Emissions from on-site waste incineration
India context: Scope 1 is mandatory under SEBI BRSR for all top 1,000 listed Indian companies.
Scope 2: Indirect Energy Emissions
Scope 2 covers indirect GHG emissions associated with the generation of purchased electricity, heat, steam, or cooling consumed by the company.
Examples
- Grid electricity purchased from the national/state grid
- District heating or cooling purchased from third parties
- Steam purchased from external suppliers
- Electricity from renewable sources (reported separately as market-based)
India context: India uses the CEA Grid Emission Factor for location-based Scope 2. Companies with RECs or PPAs can also report market-based Scope 2.
Scope 3: Value Chain Emissions
Scope 3 captures all other indirect emissions in a company's upstream and downstream value chain — typically the largest share of a company's total carbon footprint.
Examples
- Category 1: Purchased goods and services
- Category 3: Fuel & energy-related activities
- Category 4: Upstream transportation and distribution
- Category 6: Business travel (flights, hotels)
- Category 11: Use of sold products
- Category 12: End-of-life treatment of sold products
India context: BRSR Core encourages Scope 3 disclosure for material categories. The GHG Protocol identifies 15 Scope 3 categories in total.
Why Scope 3 Matters Most
For most companies, Scope 3 represents 70–90% of their total carbon footprint. Ignoring it means severely understating climate impact and risk exposure. Major institutional investors — including those using TCFD frameworks — now expect companies to quantify and disclose at least the most material Scope 3 categories.
MindEarth Consultancy's Scope 3 screening service identifies your highest-impact categories and builds a proportionate, audit-ready disclosure. Explore our GHG calculation guide for the full methodology.
Scope 1, 2 & 3 Under SEBI BRSR
India's SEBI mandates GHG disclosure as part of the Business Responsibility and Sustainability Reporting (BRSR) framework. The requirements are as follows:
| Scope | BRSR (Top 1,000) | BRSR Core |
|---|---|---|
| Scope 1 | Mandatory | Mandatory + Assured |
| Scope 2 | Mandatory | Mandatory + Assured |
| Scope 3 | Encouraged | Material categories encouraged |
How MindEarth Consultancy Helps
MindEarth Consultancy provides end-to-end Scope 1, 2, and 3 emissions accounting services for companies across manufacturing, financial services, technology, and consumer sectors in India and globally. Our deliverables include:
- Organisational boundary definition and emission source identification
- Activity data collection templates and supplier engagement protocols
- Emission factor selection (IPCC, CEA, DEFRA, industry-specific)
- Full GHG inventory in CO₂e with uncertainty analysis
- BRSR-ready disclosure documents and board presentations
- Year-on-year comparison and science-based target (SBT) pathway analysis
Calculate Your Scope 1, 2 & 3 Emissions
Get a free scoping call with a MindEarth Consultancy GHG expert and understand what's needed for your first compliant emissions inventory.