Scope 1, Scope 2, and Scope 3 Emissions Explained for Indian Companies
Every listed Indian company needs to understand GHG emission scopes for BRSR Core compliance. This guide explains Scope 1, 2, and 3 emissions with Indian examples, how to calculate them using the GHG Protocol, and why Scope 3 matters most.
The GHG Protocol emission scopes framework
The GHG Protocol Corporate Standard— the world's most widely used greenhouse gas accounting framework — defines three scopes for categorising GHG emissions:
Scope 1 covers all direct GHG emissions from sources owned or controlled by the company. These are emissions that come from combustion of fuels or industrial processes under your direct control.
Indian examples
- Coal, gas, or oil burned in industrial boilers and furnaces
- Diesel consumed by company-owned generators (DG sets)
- Fuel used in company-owned vehicles and fleet
- Fugitive emissions from refrigerants and air conditioning
- Process emissions (e.g., CO₂ from cement kiln calcination)
How to calculate:
Fuel quantity (litres/kg/m³) × Emission factor (kg CO₂e per unit) from MoEFCC = tCO₂e
Scope 2 covers indirect GHG emissions from the generation of purchased electricity, steam, heat, or cooling. For most Indian manufacturers, Scope 2 is the largest emission source.
Indian examples
- Electricity purchased from the state grid (DISCOM)
- Steam or chilled water purchased from a utility
- Electricity drawn under open-access arrangements
How to calculate:
Electricity consumed (kWh) × CEA state grid emission factor (kg CO₂/kWh) = tCO₂e. India CEA publishes annual grid emission factors by state.
Scope 3 covers all other indirect GHG emissions that occur across a company's upstream and downstream value chain — typically 70–90% of total corporate carbon footprint. Mandatory for BRSR Core from FY 2025-26.
Indian examples
- Cat 1: Purchased goods & services (supplier emissions)
- Cat 3: Upstream fuel and energy supply chain
- Cat 4: Upstream logistics and transport
- Cat 5: Waste generated in operations
- Cat 6: Business travel (flights, hotels)
- Cat 7: Employee commuting
- Cat 11: Customer use of sold products
- And 8 more GHG Protocol Scope 3 categories
How to calculate:
Activity data × Category-specific emission factor. Methods include spend-based, activity-based, or supplier-specific primary data.
Why Scope 3 is the biggest challenge for Indian companies
For most Indian manufacturers, Scope 3 emissions dwarf Scope 1 and 2 combined. A steel company's Scope 3 (iron ore mining, coal transport, downstream processing) can be 5–10x its Scope 1+2 footprint. A pharma company's purchased chemicals and logistics often account for 80% of total emissions.
SEBI's BRSR Core mandate for value chain disclosures from FY 2025-26 means large listed companies must now systematically track Scope 3 — not just Scope 1 and 2. This requires Scope 3 tracking software with supplier portals to collect primary data from your supply chain.
India-specific emission factors for GHG calculation
| GHG Source | Scope | India Source |
|---|---|---|
| Grid electricity | Scope 2 | Central Electricity Authority (CEA) — state-wise factors |
| Diesel combustion | Scope 1 | MoEFCC / BEE fuel emission factors |
| Natural gas | Scope 1 | MoEFCC / IPCC 2006 (India-adapted) |
| Coal combustion | Scope 1 | MoEFCC / BEE sector-specific |
| LPG | Scope 1 | MoEFCC fuel emission factors |
| Business travel (flights) | Scope 3 Cat 6 | ICAO / DEFRA aviation factors |
| Freight transport | Scope 3 Cat 4 | MoRTH / DEFRA freight factors |
Scope 1, 2 & 3 in BRSR Core reporting
Under BRSR Core Principle 6, companies must disclose:
- Scope 1 GHG emissions (tCO₂e) and intensity
- Scope 2 GHG emissions (tCO₂e) and intensity
- Scope 3 GHG emissions (tCO₂e) — mandatory from FY 2025-26 for top 500
- Total energy consumption and renewable energy percentage
- Water and waste metrics
- Reduction targets and Net Zero commitments
Frequently asked questions
What are Scope 1 emissions?
Scope 1 emissions are direct GHG emissions from sources owned or controlled by a company — such as fuel combustion in boilers, furnaces, kilns, and company-owned vehicles. Examples for Indian companies include diesel used in DG sets, coal burned in industrial boilers, LPG used in manufacturing, and natural gas combustion. Scope 1 emissions are calculated by multiplying fuel consumption by fuel-specific emission factors from MoEFCC.
What are Scope 2 emissions?
Scope 2 emissions are indirect GHG emissions from the generation of purchased electricity, steam, heat, or cooling consumed by the company. For most Indian manufacturers, Scope 2 is the largest share of Scope 1+2 combined. Scope 2 is calculated by multiplying electricity consumption (kWh) by the grid emission factor published by India's Central Electricity Authority (CEA) — which varies by state grid.
What are Scope 3 emissions?
Scope 3 emissions cover all other indirect GHG emissions that occur in a company's upstream and downstream value chain — across 15 categories defined by the GHG Protocol. These include emissions from purchased goods and services, employee commuting, business travel, logistics, product use, and end-of-life disposal. Scope 3 typically accounts for 70-90% of a company's total carbon footprint.
Why is Scope 3 important for BRSR Core in India?
BRSR Core mandates value chain (Scope 3) GHG disclosures for companies in the top 500 from FY 2025-26. Since Scope 3 represents the majority of most companies' carbon footprints, it is also where the biggest emissions reduction opportunities lie. Tracking Scope 3 is essential for setting credible Net Zero targets and for India's Carbon Credit Trading Scheme (CCTS) compliance.