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Glossary
Carbon and ESG reporting

What is GHG Protocol Scope 1, 2 and 3?

Definition

The GHG Protocol is the corporate accounting framework from WRI and WBCSD that sorts a company's greenhouse gas emissions into Scope 1 direct sources, Scope 2 purchased energy and Scope 3 value chain activity.

Where a building portfolio's emissions land

Companies and public bodies use the scopes to structure an inventory, and the main disclosure regimes ask for data in this shape, including ESRS E1, IFRS S2, CDP and SBTi target validation. For a property owner, Scope 1 is gas, diesel and other fuel burned on site plus refrigerant escaping from owned equipment. Scope 2 is grid electricity, district cooling, steam and heat bought from someone else. Tenant energy, purchased goods and embodied carbon usually sit in Scope 3.

Versions in force and the revision under way

The GHG Protocol Corporate Standard defines Scope 2 as emissions from purchased or acquired electricity, steam, heat and cooling, and was updated in 2015 by the Scope 2 Guidance. The Scope 3 Standard, released in 2011, divides the value chain into 15 categories.

A Scope 2 revision opened for public consultation on 20 October 2025, with the period extended to 31 January 2026. Per the GHG Protocol, the proposal keeps dual location-based and market-based reporting, and final publication is expected in 2027.

What Aqueduct meters for the Scope 1 and 2 lines

Scope 2 starts as kWh per site and per source. The aQ EnergySmart electrical twin balances grid import, solar and backup generation against HVAC, lighting, plug and service loads, and shows carbon today in tonnes of CO2e using a stated grid factor and year. Gas is metered in therms or cubic meters for the combustion line. Your carbon accounting team still chooses the factors and owns the inventory.

Questions

GHG Protocol Scope 1, 2 and 3: common questions

The GHG Protocol is the most widely used set of standards for counting corporate greenhouse gas emissions. Its Corporate Standard defines organizational boundaries, the three scopes and reporting rules, and companies use it as the calculation basis for most climate disclosures. See ESG and sustainability reporting.

The GHG Protocol is voluntary. It becomes binding in practice when a regulation, lender or target program you report under asks for emissions calculated on its basis, as SBTi target validation and most disclosure frameworks do.

The location-based figure uses the average emissions of the grids you draw from, so it falls as those grids decarbonize. The market-based figure follows the contracts and certificates you buy, so it shows the effect of procurement choices. Both start from the same metered kWh.

Refrigerant released from chillers, cold rooms or split systems that you own or control counts in Scope 1, even though no fuel is burned. Many refrigerants have high global warming potential, so a small leak from a cold store can weigh as much as a large fuel line in the inventory.

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