Carbon reporting used to matter only to companies the law required it of. Larger customers now ask their suppliers for emissions data as a condition of doing business, which puts it in front of firms well below any reporting threshold.
Verification
- Verified as at:
- Source:
- GHG Protocol scope definitions; DESNZ conversion factors, published annually
- Last reviewed by:
- Omnium
Figures in this sheet were current at the verification date above. Regulated charges reset each April. If you are relying on a figure, check the source or ask us.
Designed A4 fact sheet, ready to print or circulate.
The three scopes
| Scope | What it covers | Examples |
|---|---|---|
| Scope 1 | Direct emissions from sources the business owns or controls. | Gas boilers, on-site generation, company vehicles, refrigerant leaks. |
| Scope 2 | Indirect emissions from the energy the business buys and uses. | Purchased electricity, heat or steam. |
| Scope 3 | All other indirect emissions across the value chain, upstream and downstream. Usually the largest and the hardest to measure. | Purchased goods and services, business travel, commuting, waste, use of sold products. |
Scope 1 and 2 are within direct control and are where reduction starts. Scope 3 is often the largest share of the total and the most difficult to measure, which is why credible plans phase it in rather than claiming it from the outset.
Market basis and location basis
Scope 2 can be reported two ways. The location basis uses the average grid factor. The market basis reflects what the business actually contracted for, including renewable-backed supply.
Both should be reported. A business reporting only the market basis is showing the flattering number, and a reader who knows the subject will notice.
We report both, and we name the backing mechanism behind any renewable claim rather than asserting one.
Conversion factors change every year
Emissions are calculated by applying published conversion factors to consumption. Those factors are republished annually and the correct year’s set has to be used.
The methodology also changes periodically, which can break year-on-year comparability. Where a comparison spans a methodology change we say so rather than presenting the series as continuous.
How this goes beyond the legal minimum
- Scope 3. Statutory reporting mandates Scope 1 and 2. A serious carbon position increasingly has to address Scope 3, because that is where most of the footprint usually sits.
- Smaller businesses. Reporting regimes have thresholds. Customer and lender expectations do not.
- A plan, not a number. Reporting a figure is the start. A credible position sets a baseline, a trajectory and dated targets, then reports progress including where it has not gone to plan.
Related sheets
- Streamlined Energy and Carbon Reporting
Which companies and LLPs must disclose energy and emissions in their annual accounts, what has to be in the disclosure, and where SECR usually goes wrong.
- The net zero roadmap
The order to decarbonise a building or portfolio in, and why measuring and reducing before generating and offsetting costs less.
- ESOS Phase 4
Who qualifies for the Energy Savings Opportunity Scheme on 31 December 2026, what Phase 4 requires, and why the group rule catches organisations out.
Take this sheet into a meeting
Carbon reporting and the three scopes is available as a designed A4 fact sheet, dated and set for printing or circulation.
If this sheet raises a question about your own sites, speak to us.