Scope 1 emissions are the sources of emissions which your company (or organization) directly owns or operationally in control of. Examples of Scope 1 emission sources include fuel combusted on site in a boiler, fuel combusted in company owned vehicles, process-related emissions (e.g. chemical conversion processes), amongst others. Scope 2 emissions are indirect sources of emissions arising specifically from purchased utilities, most notably electricity but also steam, heating, and cooling. Scope 3 emissions are all other indirect sources of emissions not reported in Scope 2. In essence, Scope 3 emissions are all of the other sources of emissions and embodied carbon in one's value chain (both upstream and downstream). Examples of Scope 3 emissions include purchased goods and services, capital goods, upstream and downstream transportation/distribution, employee commuting, and business travel, amongst others.

Most companies will find that they must report their Scope 1 and 2 GHG emissions as a regulatory requirement in the country which they operate. Aside from regulatory requirements, GHG reporting is often a requirement for international lending purposes and/or other due diligence. It is also not uncommon to find that GHG reporting is a requirement in vendor selection processes. Voluntarily, companies are also reporting their emissions in order to demonstrate their leadership on climate change, including reporting to the CDP (formerly the Carbon Disclosure Project). Scope 3 emissions are often voluntary, for example according to the GHG Protocol for Corporate-Level Reporting. However, more and more companies are understanding that some of their greatest emissions and potential opportunities for reductions occur in their Scope 3 emissions. Additionally, Scope 3 emissions are becoming ever-more important as companies align their reporting according to Science Based Targets.

There are two types of GHG reporting: (1) for companies and (2) for products. Product-Based GHG Assessments (also known as Environmental Product Declarations or Product Carbon Footprints) involves quantifying and expressing all the Scope 1, Scope 2, and Scope 3 emissions for a specific product. Thus, the emissions are usually expressed per product (e.g. per tonne of output).

As greenhouse gas emissions (GHG) rise globally, and as governments and the international community look for ways to reduce our carbon intensity, companies and organizations are facing more pressure to ensure their products and services are carbon-friendly. TPC has helped dozens of companies obtain their Climate Affairs permits and compliance with international GHG reporting standards, such as producing environmental product declarations.

Three Pillars Consulting can provide your company with a Corporate-Level or Product-Level GHG Assessment, or simply advisory services on how to integrate carbon management into your company and products. We have been working with companies and organizations within Oman and the Gulf Region (e.g. Dubai, Abu Dhabi, Kuwait, Saudi Arabia) to help them report on their environmental footprints for both regulatory purposes but also for business-to-business discussions and negotiations.