Emissions of carbon and other greenhouse gases (GHGs) fall into three categories: Scope 1, Scope 2, and Scope 3. These three scopes, defined by the GHG Protocol, refer to the source of emissions and who owns or controls them.
It’s important to understand the difference between Scope 1, 2 and 3 emissions If you want to measure and report your environmental impact as a business, community enterprise or household. Your carbon footprint represents the total greenhouse gases emitted into the atmosphere from all three scopes.
Overview of Scope 1, 2 and 3 emissions (Source: GHG Protocol, Corporate Value Chain Scope 3 Standard)
Scope 1 emissions

Scope 1 covers direct emissions from sources owned or controlled by you or your organisation.
In other words, Scope 1 measures greenhouse gases that your business or household releases directly into the atmosphere.
GHGs are released when you burn fuel for stationary equipment such as gas stoves, wood or oil-fired heaters, boilers, barbeques and generators. They also come from mobile equipment like vehicles, boats or other transportation you own or manage, and from certain chemical processes.
Scope 1 does NOT include emissions from sources you don’t control directly, such as emissions from delivery service vehicles or employee travel – those fall into Scope 3.
To calculate Scope 1 emissions, you look up the emission factor of the fuel/s and multiply it by the amount used, allowing for factors such as vehicle type and usage when calculating mobile emissions.
Ways of reducing Scope 1 emissions include:
- upgrading to more fuel-efficient equipment
- using alternative or renewable fuel sources
- switching to electric, dual fuel or smaller, economical vehicles.
Scope 2 emissions

Scope 2 covers indirect emissions from the energy you purchase and use – electricity, steam, heating and cooling.
It measures GHGs generated by the supplier of the energy, not by you. However, by using energy, you are indirectly responsible for some of the energy provider’s GHG emissions. So if you use a lot of energy, how the energy is produced has a big impact on your Scope 2 emissions.
To calculate Scope 2 emissions, you multiply the amount of energy you use by an emissions factor based on the energy source. For example, energy from renewable sources like wind or solar has a much lower emission factor than coal-fired generators. To find emission factors, see GHG cross-sector tools.
You can reduce Scope 2 emissions by actions such as:
- switching to renewable energy
- reducing energy use and improving energy efficiency.
- investing in carbon offsets, such as planting trees, carbon sequestration or renewable energy projects.
Scope 3 emissions

Scope 3 includes all other indirect emissions resulting from your activities (as an organisation or household).
They are GHG emissions you can’t control directly, but you can influence them via your activities and decisions.
Scope 3 emissions can have a significant impact but are hard to measure and manage because they look at the whole value chain. This means that as well as emissions from your activities, Scope 3 emissions come from ‘upstream’ (supplies and processes feeding into your activities), and ‘downstream’ (what happens afterwards). For example…
- Your own activities might include: managing the business or household, catering, cleaning, producing products, providing support, marketing, staff travel, investments, maintenance and waste management.
- Upstream activities typically involve: extracting and processing raw materials, making products you buy/use, supplying and transporting goods, and providing utilities, food, finance and business services.
- Downstream, Scope 3 considers your impact on others: how your products or services are distributed, used, and treated or disposed of after use.
Calculating Scope 3 emissions is complex due to the diversity of sources. Accurate measurement requires accurate data, which can be hard to get from suppliers or customers. Carbon management tools can be helpful here – to collate data, track areas of impact, and model scenarios for improvement.
Reducing Scope 3 emissions might involve:
- researching sustainable materials and suppliers
- implementing eco-efficient technologies
- changing purchasing policies and decision-making processes
- designing sustainable products and services
- participating in circular economy marketplaces (such as Aspire).
Use the GHG Emissions Calculator for Organisations
Download the UN’s free Excel spreadsheet to calculate your organisation’s emissions in detail (or go to the source). See also the GHG Protocol Tools.
Tracking and reporting emissions
Reporting greenhouse gas emissions requires measuring a range of factors over time, so automated Environmental Management Systems and Carbon accounting tools can remove much of the legwork.
To find out if your organisation needs to report emissions (and how), see the Australian National Greenhouse & Energy Reporting Scheme. Even if you represent a small business that is not required to provide compulsory climate reporting, you may find that your clients or trading partners ask you for emissions data. That’s because you are part of a supply chain that impacts the Scope 3 emissions of other organisations.