Hence, these are emissions that go beyond an organization’s control. Scope 3 emissions are the indirect GHGs released across an organization’s value chain, (including the upstream or downstream emissions released from a product or service). This article focuses on scope 3 emissions. To expand on these definitions, we’ve produced a series of articles, with each piece covering a specific corporate emissions category.

That includes GHGs released across an organization’s value chain (both upstream and downstream emissions). Scope 3: These are indirect GHGs released due to activities that go beyond an organization’s control.This includes electricity purchased, cooling, heating, and steam. Scope 2: These are indirect GHGs released due to the energy bought by an organization.Scope 1: These are emissions released from a company burning fossil fuels directly to power operations.The GHG Protocol introduced an emission classification system that defined corporate emissions as follows: And doing that successfully starts by understanding how GHG emissions are categorized. Hence the pressure mounts for companies to measure, manage and report their GHG emissions. While this is a service that your company does provide, for this project, it can be considered out of scope, as event merchandise was not included in the scope statement or identified as a project deliverable.The GHG Protocol’s emission classification systemĪ 2021 report by Natural Capital Partners analyzed carbon neutrality commitments made by the Fortune Global 500, finding that there’s been a three-fold increase in net-zero targets, which means a 50% increase in the number of companies that have either achieved carbon neutrality, or are targeting it by 2030.

Pleased with your initial work, the client then asks if your firm can create merchandise for an upcoming event. If a client asks for another feature or service to be included, this can be considered to be “out of scope”.įor instance, a marketing company and a client have established the scope of a project - to redesign their website and logo. It clarifies the work and deliverables of a project, setting out the expectations for both parties. At the beginning of a project, the scope is established in documents like the scope statement. In project management, “out of scope” means anything that is outside the parameters of an initiative.

Scope of business activities