3.1 GHG Emissions and Classification

Greenhouse Gases refer to a collection of seven greenhouse gases listed in the Kyoto Protocol, i.e., carbon dioxide (CO2); methane (CH4); nitrous oxide (N2O); hydrofluorocarbons (HFCs); nitrogen trifluoride (NF3); perfluorocarbons (PFCs); and sulfur hexafluoride (SF6). These GHGs are released into the atmosphere as a result of emissions from various activities undertaken as part of several business operations and/or an entity’s value chain.

Classification

GHG Emissions are broadly classified into two sources and three reporting categories which are consistently used across these standards and/or frameworks:

Table 2-1 Classification of GHG Emissions

Source	Reporting Category
Direct Emissions	Scope 1
Indirect Emissions	Scope 2
Indirect Emissions	Scope 3

These emission reporting categories can be distinguished based on the following definitions:

• Scope 1 – Emissions from sources that are owned or controlled by an entity
• Scope 2 – Emissions from sources that are purchased and controlled by an entity
• Scope 3 – Emission from all other sources

These reporting categories are further sub-divided into various activities as listed below:

Table 2-2 Reporting Categories

Reporting Category	Emission Source Activity
Scope 1	Fuels
Scope 1	Refrigerants
Scope 1	Owned Transportation
Scope 2	Electricity
Scope 2	Heat and Steam
Scope 2	District Cooling
Scope 3	Purchased goods and services
Scope 3	Capital goods
Scope 3	Fuel and energy-related activities
Scope 3	Upstream transportation and distribution
Scope 3	Waste generated in operations
Scope 3	Business travel
Scope 3	Employee commuting
Scope 3	Upstream leased assets
Scope 3	Downstream transportation and distribution
Scope 3	Processing of sold products
Scope 3	Use of sold products
Scope 3	End-of-life treatment of sold products
Scope 3	Downstream leased assets
Scope 3	Franchises
Scope 3	Investments