Carbon Accounting: GHG Emissions Calculation – Scope 1 & 2

Explore evidence that climate change is real and driven by anthropogenic emissions, and summarize key frameworks: IPCC, UNFCCC, COP, Kyoto Protocol, and the Paris Agreement, including physical and transition risks.

Define greenhouse gas emissions and distinguish them from air pollutants, detailing seven GHGs per Kyoto and Doha amendments and outline a corporate GHG inventory with scopes 1–3.

Explore a bird's-eye view of ghg emissions calculation by designing the inventory, calculating scope 1 and 2 emissions from activity data, and guiding ongoing management through targets and decarbonization plans.

Explore how a living, seven core components inventory management plan guides an organization in defining boundaries, collecting data, calculating emissions, tracking performance, and auditing for reliable GHG reporting.

Define the organizational boundary for the ghg inventory using equity share or control approaches. Determine emissions through ownership or control, illustrated via a multi-entity example, emphasizing consistency and transparency.

Consider factors such as commercial reality, regulations, liability, financial accounting alignment, management tracking, data costs, and reporting completeness to decide between equity share, financial control, or operational control.

Explore emissions accounting for leased assets under the Greenhouse Gas Protocol, detailing financial and operating leases and boundary approaches to assign scope one, two, and three emissions.

Define the operational boundary by selecting which scope 1–2 emissions, sources, gases, and facilities to include, illustrated by AY Brands’ choice to exclude scope 3 and unreliable process emissions.

Master GHG emissions calculations by using activity data, distinguishing primary and secondary sources, and applying data collection templates and SOPs to compute scope 1 and 2 emissions with emission factors.

Learn how emission factors translate activity data into greenhouse gas emissions, with examples using diesel and natural gas, sources, and criteria for choosing region-specific and primary data.

Move from theory to action by understanding scope one emissions, their subcategories, data needs, and emission factors. Build a practical scope one workbook and apply quality review for reliable reporting.

define scope one emissions as direct emissions from assets owned or controlled by the company, covering stationary and mobile combustion, fugitive emissions, and process emissions.

Explore how stationary combustion emissions from fixed equipment are calculated using activity data, emission factors, and GWP to produce CO2e, with real-world generator and boiler examples.

Calculate emissions from mobile combustion under scope one by analyzing moving company assets, fuel use, distance traveled, emission factors, and global warming potential to report carbon dioxide equivalent.

Quantify fugitive emissions with the material balance method by tracking IB, CB, IE, CE, P, and S, then convert unaccounted mass to CO2e using GWP.

Learn how Scope 2 emissions arise from purchased energy and how to calculate them using location-based and market-based methods, including emission factors, hierarchy, step-by-step calculations, and a case study.

Explore scope 2 emissions as indirect emissions from energy purchases, including electricity, steam, heating, and cooling, and learn how the ghg protocol requires reporting them.

Understand how electricity emissions are accounted for across generators, utilities, and end users, including transmission losses and scope 1, 2, and 3 allocations.

Explore quantifying scope 2 emissions with the location-based method by using activity data, region-specific emission factors, and GWP to convert to CO2e; understand regional variation.

Determine scope 2 emissions using the location-based method with electricity data and region-specific eGrid factors (ERCT). Convert methane and nitrous oxide to CO2e using GWP, then sum with CO2.

Investigate the market-based method for scope 2 emissions, including when it applies in markets with differentiated electricity choices, and follow a hierarchy: EACs, PPAs, supplier-specific, residual mix, then location-based factors.

Explain how energy attribute certificates (EACs) and renewable energy certificates (RECs) enable market-based scope 2 accounting, covering retirement, preventing double counting, and bundled versus unbundled certificates.

Understand how power purchase agreements influence scope 2 emissions by clarifying who holds energy attribute certificates in physical and virtual PPAs, and applying contract emission factors.

Use supplier-specific emission factors as the third option in market-based scope 2 calculations when the factors are publicly disclosed and reflect a complete supply mix, with proper EAC accounting.

Explore residual mix emission factors and their place in the market-based emissions hierarchy. Learn when to use residual mix, EACs, PPAs, supplier-specific, or location-based factors.

Apply the market-based emission factor hierarchy to calculate scope 2 emissions, using recs for the renewable portion and residual mix factors for the remaining electricity.

Calculate emissions for purchased heat, steam, and cooling from a centralized plant by collecting activity data from invoices or meters, applying emission factors, and converting to CO2e for scope 2.

Discover why companies pursue ghg emissions reduction targets to satisfy investor and stakeholder expectations, manage climate risks, cut energy costs, and gain competitive advantage.

Learn how targets specify scope, gas, baseline, and deadline, with Mercedes-Benz’s 80% CO2 cut by 2030; compare absolute vs intensity, CO2 vs GHG, and net zero vs carbon neutrality.

Set a base year as the anchor for measuring emission reductions, and clearly justify it; the GHG protocol requires reporting the base year, with options for single-year or multi-year averages.

Understand how base year recalculation policies ensure comparable scope by accounting for structural changes, methodological improvements, and error corrections, using a five percent threshold to trigger restatements.

Set a decarbonization plan by securing top-level commitment, defining a preliminary emission reduction target, building an action plan, assessing financial feasibility, and revising to a scope 1 and 2 target.

Secure top management buy-in to launch a decarbonization plan, then define preliminary targets—absolute or intensity-based—with clear scope, base year, and stakeholder input to guide cross-functional action.

Identify hot spots in your emission inventory, then map decarbonization levers—renewables, efficiency, fuel switching, PPA and EAC strategies—to project reductions to 2030 and 2050.