Scope 1, 2, and 3 emissions are categories used to classify greenhouse gas emissions of a business or organization in the context of corporate sustainability reporting. EU regulations are beginning to make Scope 1, 2 & 3 emissions a mandatory reporting requirement for larger businesses but will extend to all businesses

Scope 1 emissions: These are direct emissions from sources that are owned or controlled by the organization, such as emissions from combustion of fuels in boilers or furnaces, or from vehicles owned by the organization.

Scope 2 emissions: These are indirect emissions from the generation of electricity, heat, or steam that is purchased by the organization. For example, if an organization buys electricity from a utility that generates power by burning coal, the emissions associated with that electricity generation would be considered the organization's scope 2 emissions.

Scope 3 emissions: These are indirect emissions from sources that are not owned or controlled by the organization but are related to its activities, such as emissions from the production and transportation of purchased goods and services, employee commuting, or waste disposal. Scope 3 emissions are generally considered the most challenging and difficult to measure, as they involve activities outside of the reporting organization's direct control. However, they are also the most important in terms of overall impact, as they often represent the largest share of a company's total greenhouse gas emissions.

By accounting for all three scopes of emissions, organizations can get a more comprehensive view of their carbon footprint and identify opportunities to reduce their greenhouse gas emissions.