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.

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.

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.

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.

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.

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.

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.

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.