Scope 1 emissions are the direct greenhouse gas emissions from sources a company owns or controls, including the fuel it burns, the vehicles it runs, the gases released from its equipment, and the industrial processes it operates.
They are often the first emissions a company measures because they are the most directly within its control. This guide explains the four sources of Scope 1 emissions, how to measure them, and insights on reducing emissions.
Why Scope 1 emissions matter for businesses and investors
Scope 1 covers emissions from a company’s operations, making it the emissions category companies have the most direct ability to measure, manage, and reduce. It may not be the largest part of every carbon footprint—for many businesses Scope 3 is more significant—but it is the foundation of a credible carbon inventory and often provides the clearest picture of how a company is managing emissions within its own operations. For this reason, it is often scrutinized most closely by stakeholders.
For private market investors, Scope 1 is usually the most reliable emissions data to collect across a portfolio because it comes directly from a company’s own operations rather than estimates across its value chain. Together with Scope 2, it provides the operational baseline that many portfolio companies can report first, before expanding into the more complex Scope 3 categories.
Scope 1 also remains one of the most frequently requested carbon metrics collected through the Novata platform, making it an important starting point for consistent portfolio-wide carbon reporting.
Scope 1 vs. Scope 2 vs. Scope 3 emissions: What’s the difference?
Carbon emissions are divided into three categories under the Greenhouse Gas (GHG) Protocol.
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Emission Scope
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What It Is
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Examples
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|---|---|---|
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Scope 1
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Direct emissions from owned or controlled sources
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Fuel burned in boilers, company-owned vehicles, industrial processes, refrigerant leaks
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Scope 2
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Indirect emissions from purchased electricity, steam, heating, or cooling
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Electricity used to power offices, factories, and facilities
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Scope 3
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All other indirect emissions across the value chain
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Purchased goods and services, business travel, employee commuting, waste, product use
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Most organizations begin carbon measurement with Scopes 1 and 2 because the necessary operational data is generally easier to access before expanding into Scope 3.
What are the four sources of Scope 1 emissions?
The GHG Protocol groups direct emissions into four source types. Most companies will have at least the first two:
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Source category
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What It Is
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Examples
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|---|---|---|
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Stationary combustion
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Fuel burned in fixed equipment
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Boilers, furnaces, generators, kilns
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Mobile combustion
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Fuel burned in owned or controlled vehicles
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Fleet cars and trucks, forklifts, ships, aircraft
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Fugitive emissions
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Can be unintentional releases and leaks
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Refrigerant (HFC) leaks, methane from valves and seals
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Process emissions
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Emissions released by physical or chemical processes
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Cement calcination, steelmaking, chemical reactions
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The sources that matter most depend on the business. For instance, an office-based company’s Scope 1 may be limited to a gas boiler and a few vehicles, while a manufacturer’s may be dominated by process emissions, and a logistics firm’s by its fleet. It’s worth noting that only vehicles running on fossil fuels count toward Scope 1. An electric fleet generally shifts those emissions from Scope 1 to Scope 2 because the associated electricity is purchased rather than burned directly.
Fugitive emissions, such as refrigerant leaks from HVAC systems or methane escaping from valves, compressors, or pipelines, are often overlooked because they can be unintentional releases rather than fuel combustion. Although these releases can be relatively small in volume, they are still significant because many refrigerants have aglobal warming potential hundreds to thousands of times higher than carbon dioxide, according to the Climate & Clean Air Coalition.
Examples of Scope 1 emissions by industry
The types of Scope 1 emissions a company reports depend on its operations. While every organization is different, these examples illustrate where direct emissions most commonly occur.
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Industry
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Common Scope 1 emission sources
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|---|---|
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Office-based businesses
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Natural gas boilers, backup generators, company-owned vehicles
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Manufacturing
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Boilers, furnaces, kilns, industrial processes, refrigerant leaks
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Transportation and logistics
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Fleet cars and trucks, ships, aircraft, forklifts
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Food and beverage
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Refrigeration systems, boilers, company vehicles
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Oil and gas
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Fuel combustion, methane leaks, flaring, process emissions
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Identifying the sources relevant to your business is the first step toward building an accurate Scope 1 inventory. Once you’ve identified your emission sources, the next step is collecting the operational data needed to calculate emissions.
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How to measure Scope 1 emissions
Scope 1 is measured from activity data that is usually sourced internally. Some steps to get started include:
- Identify your sources. List the fixed equipment (e.g., natural gas heating systems, diesel machinery), vehicles, processes, and refrigerant-containing systems the company owns or controls across every site.
- Gather activity data. Collect fuel consumption, distance or fuel for vehicles, process throughput, and refrigerant top-up records, which can be used as an estimate of refrigerant losses.
- Apply emissions factors. Convert activity data into emissions using recognized fuel- and gas-specific factors, expressed as carbon dioxide equivalent (CO2e).
- Total and document. Sum across sources and keep a clear record of methods and assumptions, ready for assurance and year-on-year comparison.
How to reduce Scope 1 emissions
Because Scope 1 emissions come from a company’s own operations, opportunities to reduce emissions are directly in its control. Some practical steps include:
- Improve energy efficiency by upgrading boilers, furnaces, and other equipment, optimizing heating and cooling systems, and reducing fuel consumption where possible.
- Electrify heat and industrial processes by replacing fossil fuel-powered boilers, furnaces, and industrial equipment with electric alternatives where feasible. This shifts emissions from Scope 1 fuel combustion to Scope 2 purchased electricity, which can be reduced over time as electricity sources become lower carbon.
- Transition company-owned vehicle fleets to electric vehicles or lower-carbon fuels where appropriate.
- Strengthen refrigerant management through regular inspections and maintenance to prevent fugitive leaks.
For heavy industry, reducing process emissions may require changes to raw materials, production technology, and, for some industries, carbon capture technologies.
What reporting frameworks require Scope 1 emissions?
Scope 1 emissions form the foundation of most major climate disclosure frameworks, including CSRD, IFRS S2, California’s climate legislation, and the UK’s Streamlined Energy and Carbon Reporting (SECR). Reporting requirements vary by jurisdiction and organization type.
To understand which sustainability regulations apply to your organization and the reporting requirements they include, explore Novata’s Regulatory Navigator.
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FAQs
What are Scope 1 emissions?
Scope 1 emissions are the direct greenhouse gas emissions from sources a company owns or controls, including fuel burned in its equipment and vehicles, emissions from its industrial processes, and gases that leak from its systems. They are the most directly controllable part of a company’s footprint.
What are the four categories of Scope 1 emissions?
The GHG Protocol groups Scope 1 into four sources: stationary combustion (fixed equipment like boilers), mobile combustion (owned vehicles), process emissions (from physical or chemical processes), and fugitive emissions (often unintentional leaks, such as refrigerants).
What’s the difference between Scope 1 and Scope 2?
Scope 1 is direct emissions from sources a company owns or controls, such as fuel burned, vehicles run. Scope 2 is indirect emissions from purchased energy, such as electricity. Together, Scopes 1 and 2 provide an organization’s operational emissions baseline; see our carbon accounting guide for the full picture.
How do you measure Scope 1 emissions?
Identify your sources, gather activity data (fuel use, vehicle fuel or distance, process throughput, refrigerant top-ups), and apply recognized emissions factors to convert that data into emissions. Sum across sources and document your methods and assumptions.
Are Scope 1 emissions mandatory to report?
Most major climate disclosure frameworks require organizations in scope to report Scope 1 emissions. These include the EU’s CSRD, the ISSB’s IFRS S2, California’s climate laws, and the UK’s SECR requirements. See our guide to ESG regulations for more on the regulatory landscape.
How can companies reduce Scope 1 emissions?
Some steps to reduce scope 1 emissions include: improve energy efficiency, electrify heat and processes, transition vehicle fleets to electric or low-carbon fuels, and manage refrigerants to prevent leaks. For industrial processes, reduction may require changes to inputs or technology.
What are fugitive emissions?
Fugitive emissions are often unintentional releases of greenhouse gases, most commonly refrigerant leaks from cooling and air-conditioning systems, or methane escaping from valves, seals, and equipment. They are one of the four Scope 1 source categories and are easy to overlook despite often having a high global warming potential.
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