What are Scope 1, 2 and 3 emissions, and how are they calculated?

Short answer

Scope 1 is direct emissions from sources you own or control, such as fuel burnt in boilers, generators and vehicles. Scope 2 is emissions from the electricity, steam or cooling you buy. Scope 3 is all other emissions in your value chain, such as purchased goods, transport and business travel. Each is calculated as activity data multiplied by an emission factor, for example litres of diesel times the diesel factor, or kWh times the grid factor.

The three scopes

Scope	What it covers	Data source
Scope 1 (direct)	Fuel burnt in boilers, furnaces, DG sets and owned vehicles; process emissions; refrigerant leaks	Fuel purchase records, logbooks, refrigerant refill records
Scope 2 (energy indirect)	Electricity, steam, heating and cooling bought from others	Electricity bills and meter readings
Scope 3 (other indirect)	15 categories, including purchased goods, inbound and outbound transport, business travel, employee commuting, waste, and use of sold products	Supplier data, logistics records, travel bookings, spend data

The calculation

Emissions (tCO₂e) = activity data × emission factor

Example (illustrative)	Activity	Factor	Emissions
Diesel in DG sets (Scope 1)	10,000 litres	about 2.7 kg CO₂ per litre	about 27 tonnes
Grid electricity (Scope 2)	5,00,000 kWh	CEA grid factor, about 0.7 kg CO₂ per kWh	about 350 tonnes

Use the factor from a documented, current source (the CEA's latest CO₂ baseline database for Indian grid electricity; recognised factors for fuels) and record which one you used. Other greenhouse gases, such as refrigerants, are converted into CO₂ equivalent using their global warming potential.

Intensity

BRSR asks for emissions intensity, for example tonnes per rupee crore of turnover (also adjusted for purchasing power parity), so companies of different sizes can be compared.

Getting started

Fix the boundary: which entities, plants and offices, and the reporting year.
Collect twelve months of fuel and electricity data with source documents.
Choose and record emission factors.
Calculate Scope 1 and Scope 2, then intensity.
Start Scope 3 with the largest categories, usually purchased goods and transport.
Keep the working papers ready for assurance.

Get a first estimate with the emissions estimator, and read Scope 1, 2 and 3 explained.

Legal basis

Greenhouse Gas Protocol Corporate Standard (WRI and WBCSD)
BRSR, Principle 6 (environment): Scope 1 and 2 emissions and intensity, SEBI LODR Regulations

Official sources

Greenhouse Gas Protocol: Corporate Standard (World Resources Institute and WBCSD)
Central Electricity Authority: CO2 baseline database (grid emission factor)

Work it out for your own figures with our calculator: Emissions estimator.

By CA Ameesh Gupta, FCA, DISA (ICAI) | Last reviewed: 7 November 2026. General information, not advice on your facts: the law changes and outcomes depend on the details of each case.