In contrast to Scope 1 emissions, which are direct GHG emissions (i.e., GHG emissions from what the Corporate Standard’s glossary describes as “sources that are owned or controlled by the reporting company”), Scope 2 and Scope 3 emissions are indirect GHG emissions (i.e., GHG emissions that, as described in the Corporate Standard’s glossary, “are a consequence of the operations of the reporting company, but occur at sources owned or controlled by another company”). Therefore, reductions in Scope 2 and Scope 3 emissions are more difficult to calculate accurately than reductions in Scope 1 emissions. Because indirect GHG emissions often incorporate many factors, any reductions in these emissions are not necessarily a direct result of the reporting company. That is, it may be difficult to correlate reductions in Scope 2 or Scope 3 emissions with projects or initiatives the reporting company executed. As discussed in Section 6.3, both activity data and emission factors are used to calculate GHG emissions resulting from Scope 3 activities. Since emission factors increase or decrease over time depending on a number of factors unrelated to the reporting company, it can be challenging for the reporting company to accurately present GHG emission reductions resulting from its own activities.
Copyright © 2024 Deloitte Development LLC. All rights reserved.