Scope 1 emissions are the direct greenhouse gas (GHG) emissions released from sources that a company owns or controls. These can come from boilers and furnaces, company-owned vehicles, industrial processes, captive power generation, or refrigerant leaks from cooling equipment.
For companies building a credible GHG inventory, Scope 1 is an important starting point. Understanding where these emissions originate, how they are classified and how they should be measured helps organisations strengthen their climate disclosures and prepare for increasing reporting and assurance requirements.
What Are Scope 1 Emissions?
Scope 1 emissions are direct GHG emissions from sources owned or controlled by an organisation. The GHG Protocol divides a company’s greenhouse gas emissions into three scopes:
- Scope 1: Direct emissions from owned or controlled sources.
- Scope 2: Indirect emissions from purchased or acquired electricity, steam, heat and cooling.
- Scope 3: Other indirect emissions across the value chain.
| In simple terms: If the emission is generated from a source that the company owns or controls, it generally falls under Scope 1. |
Scope 1 can include the seven greenhouse gases covered under the Kyoto Protocol:
- Carbon dioxide (CO₂)
- Methane (CH₄)
- Nitrous oxide (N₂O)
- Hydrofluorocarbons (HFCs)
- Perfluorocarbons (PFCs)
- Sulphur hexafluoride (SF₆)
- Nitrogen trifluoride (NF₃)
These gases are converted into carbon dioxide equivalent (CO₂e) using their respective global warming potentials (GWPs).
Defining the Organisational Boundary
Before calculating Scope 1 emissions, a company needs to establish its organisational boundary. The GHG Protocol provides three approaches:
- Operational control
- Financial control
- Equity share
The selected approach should be clearly documented and applied consistently across the company’s Scope 1, Scope 2 and Scope 3 inventories.
What Are the Four Scope 1 Emission Categories?
The GHG Protocol groups Scope 1 emissions into four major categories. Classifying emission sources correctly helps companies identify data requirements, assign ownership and select the appropriate calculation methodology.
| Category | What it covers | Typical sources |
| Stationary combustion | Fuel burned in fixed equipment to generate heat, steam or power | Boilers, furnaces, kilns, DG sets, captive power plants, thermic fluid heaters and canteen LPG |
| Mobile combustion | Fuel burned in owned or controlled vehicles and mobile equipment | Company cars, buses, trucks, forklifts, reach stackers and earthmovers |
| Process emissions | Gases released through chemical or physical transformation rather than combustion | Cement and lime calcination, aluminium anode consumption, iron ore reduction and chemical production |
| Fugitive emissions | Unintentional releases from leaks, venting or equipment | Refrigerant leakage, SF₆ from switchgear, methane from pipelines and certain waste-treatment systems |
A common reporting gap occurs when companies build their Scope 1 inventory only from fuel consumption, which can overlook process and fugitive emissions.
Scope 1 Emissions Examples Across Industries
| Sector | Major Scope 1 sources | Commonly overlooked area |
| Cement | Clinker calcination, coal and petcoke used in kilns | Alternative fuels and fossil carbon in raw materials |
| Iron and steel | Blast furnaces, coke ovens, captive power and reheating furnaces | Allocation of off-gases to captive power plants |
| Aluminium | Anode consumption, PFCs and captive coal power | PFC emissions during anode effects |
| Oil refining & petrochemicals | Process heaters, flaring, hydrogen production and catalyst regeneration | Flaring and venting volumes |
| Pharmaceuticals & APIs | Boilers, thermic fluid heaters, DG sets and solvent incineration | Refrigerants in HVAC and cold rooms |
| Textiles | Coal or biomass boilers, stenters and DG sets | Fossil share of mixed fuels |
| FMCG & food processing | Boilers, fryers and owned distribution fleets | Refrigerant top-ups in cold-chain operations |
| IT, banking & services | DG sets, company vehicles and HVAC refrigerants | Refrigerants in leased office HVAC |
| Healthcare | DG sets, boilers, steam generators and medical gases | Anaesthetic gases such as N₂O and fluorinated agents |
Scope 1 vs Scope 2 Emissions: What Is the Difference?
The simplest way to distinguish Scope 1 from Scope 2 is to look at where the emission occurs. Diesel burned in a company’s DG set is a Scope 1 emission. Electricity purchased from the grid is Scope 2 because the associated generation emissions occur at the power plant supplying the electricity.
| Dimension | Scope 1 | Scope 2 |
| Type | Direct | Indirect energy-related |
| Where emissions occur | Sources owned or controlled by the company | Generator supplying purchased energy |
| Coverage | Combustion, process and fugitive emissions | Purchased electricity, steam, heat and cooling |
| Reporting approach | One Scope 1 figure | Location-based and market-based |
| Typical reduction levers | Fuel switching, electrification, process changes and leak control | Renewable power, open access, rooftop solar and efficiency |
| Important: If a company owns or controls a captive power plant, the fuel burned in that plant is generally accounted for as Scope 1. |
How Does Scope 1 Emissions Reporting Work in India?
For Indian companies, Scope 1 reporting is increasingly relevant across sustainability disclosures and emerging carbon-market requirements. Two important reporting contexts are the SEBI Business Responsibility and Sustainability Reporting (BRSR) framework and the Carbon Credit Trading Scheme (CCTS).
BRSR and BRSR Core
Under Principle 6 of BRSR, relevant listed entities disclose Scope 1 and Scope 2 emissions along with emissions intensity. BRSR Core further strengthens expectations around GHG data, including disclosure of emission-factor sources and prescribed intensity indicators.
Carbon Credit Trading Scheme
The Carbon Credit Trading Scheme introduces another dimension for covered energy-intensive industries by linking GHG emission intensity with notified targets. Applicable sectors, targets and compliance requirements should be checked against the latest official notifications before publication.
Scope 1 Reporting Under Major Frameworks
| Framework | Scope 1 reporting requirement |
| BRSR | Scope 1 emissions in tCO₂e and relevant intensity indicators |
| BRSR Core | Scope 1 and Scope 2 totals, prescribed intensity metrics and emission-factor source |
| GRI | Gross Scope 1 emissions, gases included and relevant boundary and methodology information |
| IFRS S2 | Absolute gross Scope 1 emissions using the GHG Protocol Corporate Standard |
| CCTS | Plant-level GHG emission intensity against applicable targets |
How to Calculate Scope 1 Emissions
| Core formula: Activity data × emission factor × global warming potential = CO₂e emissions |
For a complete inventory, Scope 1 emissions are calculated by summing activity data, emission factors and GWPs across all relevant sources and gases. The quality of the result depends on the company’s boundary, activity data, emission factors, GWPs and supporting documentation.
8 Steps to Calculate Scope 1 Emissions
- Define the organisational boundary. Select the appropriate consolidation approach — operational control, financial control or equity share — and align it with the company’s reporting boundary.
- Create a source register. Identify every relevant combustion unit, vehicle, process line and refrigerant-containing asset across locations.
- Collect activity data. Prioritise measured and traceable data such as fuel invoices, stores issue records, flow-meter readings, fuel-card records, fleet data, refrigerant records and production data.
- Select and document emission factors. Use recognised emission-factor sources and document the source used for each calculation.
- Apply global warming potentials consistently. Clearly document the GWP source and apply it consistently across the inventory.
- Calculate and aggregate emissions. Calculate emissions by source and gas, then aggregate them by category, site and organisation as required.
- Calculate emissions intensity. Calculate the relevant Scope 1 and Scope 2 intensity indicators required for reporting.
- Maintain an evidence trail. Keep the methodology, calculation files, emission factors, source documents, assumptions and restatement policies together.
Worked Example: Scope 1 Calculation
Consider a pharmaceutical plant that uses 100 kL of diesel in DG sets and recharges 25 kg of R-410A refrigerant during the year. The source draft provides the following illustrative assumptions:
- Diesel density: 0.832 kg/L
- Diesel calorific value: 43.0 GJ/t
- CO₂ emission factor: 74,100 kg CO₂/TJ
- CH₄ emission factor: 3 kg/TJ
- N₂O emission factor: 0.6 kg/TJ
- Relevant AR6 GWPs
- R-410A GWP: 2,256
| Line item | Illustrative result (tCO₂e) |
| CO₂ from diesel | 265.1 |
| CH₄ from diesel | 0.3 |
| N₂O from diesel | 0.6 |
| Fugitive R-410A | 56.4 |
| Total Scope 1 | 322.4 |
| Technical review required: The worked example is illustrative and should be technically reviewed before publication, including the assumptions, emission factors and GWP values. |
Common Scope 1 Measurement Mistakes
Building the inventory only from energy data. Fuel records do not capture all process or fugitive emissions.
Classifying captive power as Scope 2. Electricity generated from a captive plant controlled by the company is associated with Scope 1 fuel combustion.
Treating biomass emissions as completely zero. Biogenic CO₂, CH₄, N₂O and fossil components in mixed fuels need to be treated according to the applicable accounting methodology.
Using inappropriate coal emission factors. Coal characteristics can vary considerably; measured calorific values can provide a more defensible basis where available.
Mixing GWP vintages. Changing GWP sources within a time series can create artificial changes in reported emissions.
Misunderstanding leased and contracted assets. The selected consolidation approach and control over the asset need to be considered.
Frequently Asked Questions
What are Scope 1 emissions in simple terms?
Scope 1 emissions are greenhouse gases released directly from sources a company owns or controls, such as boilers, DG sets, company vehicles, industrial processes and refrigerant leaks.
Is Scope 1 reporting mandatory in India?
For applicable listed entities, BRSR requires disclosure of Scope 1 and Scope 2 emissions and relevant intensity metrics. Entities covered by applicable CCTS requirements also need to meet their notified GHG emission-intensity obligations.
What are the four Scope 1 emission categories?
The four categories are stationary combustion, mobile combustion, process emissions and fugitive emissions.
Is electricity consumption a Scope 1 emission?
No. Purchased electricity is generally accounted for under Scope 2. Electricity generated using fuel in a captive plant or DG set owned or controlled by the company is associated with Scope 1.
Which emission factors should Indian companies use?
Companies should use recognised emission-factor sources and document the source used. The appropriate factor depends on the fuel, activity and reporting methodology.
Are biomass boiler emissions included in Scope 1?
Biogenic CO₂ from biomass is reported separately under the relevant GHG accounting approach, while CH₄ and N₂O from combustion remain part of Scope 1. Fossil components in mixed fuels also need to be accounted for.
How often should companies calculate Scope 1 emissions?
Annual reporting is generally required for relevant disclosures, while monthly or quarterly tracking can help identify errors early and improve internal controls.
Can carbon credits be deducted from Scope 1 emissions?
Carbon credits should not be used to reduce the reported gross Scope 1 emissions figure. Gross emissions and credits or removals should be presented separately in accordance with the applicable reporting framework.
How K&A Can Help Companies Strengthen Scope 1 Reporting
A reliable Scope 1 inventory begins with a clearly defined boundary, a complete source register, traceable activity data and documented emission factors.
At Kalolwala & Associates, we help organisations structure and strengthen their ESG and sustainability reporting processes by connecting data, methodology and disclosure requirements.
| Looking to strengthen your Scope 1 inventory and reporting process? Let’s talk. |
