The GHG protocol defines how the climate impact is calculated.

More and more companies choose to make climate calculations for their operations or individual products. But how do you calculate the climate impact? We go through the GHG protocol and what it entails.

It is becoming increasingly common that companies want to calculate their climate impact and set a climate strategy with an associated reduction plan. One of the reasons is that more and more consumers are demanding it and are prepared to opt out of companies that do not have climate work. Having a climate calculation simply creates competitiveness.

However, how the climate impact is calculated is another matter. The most common method is to do it according to the GHG protocol, which is the most established international standard available. With the help of the GHG protocol, businesses measure, manage, and report their greenhouse gas emissions. With a common and widely used framework, it becomes easier to compare one’s climate impact with that of others. It also makes it more transparent and consistent.

The GHG protocol divides greenhouse gas emissions into different areas called scopes.

Scope 1

In scope 1, the business’s direct climate impact is calculated, i.e. the greenhouse gas emissions the company has direct control over. If there are vehicles or machines that you own or lease, or if you have an oil boiler for heating or burning coal, these greenhouse gas emissions must be included in scope 1. The same applies to the climate impact from any factories you own.

Scope 2

Indirect greenhouse gas emissions from electricity end up here . This therefore applies to consumption of electricity, district heating and district cooling. If you do not use renewable energy, it is often an easy measure to take to reduce your climate impact. Most Swedish operations have a relatively small climate impact in scope 2 because we have such a large share of renewable energy in Sweden. However, it is important to remember that this is not the case in most of the world, with 80% of the world’s electricity supply coming from coal power.

Scope 3

Scope 3 simply includes all other greenhouse gas emissions that do not fit into scope 1 or 2. These are the indirect greenhouse gas emissions that occur outside the boundaries of the business, apart from purchased energy. Scope 3 is usually divided into so-called upstream and downstream greenhouse gas emissions.

Upstream greenhouse gas emissions are climate impacts that occur before or in your business, for example purchased goods and services, waste generated in businesses, business trips and employee commuting. Downstream greenhouse gas emissions include climate impacts that occurred later. It can be processing, use and final processing of sold products, or downstream transport and distribution.

Calculating the climate impact in scope 3 is often a greater challenge than calculating the climate impact for scope 1 and 2. This is because the climate impact in scope 3 often occurs outside your own borders and that you may therefore need to seek help from suppliers. Over the years, however, it has become both more common, and considered more important, to include scope 3 in the climate calculations. This is because this is usually where the biggest climate impact occurs, and then omitting scope 3 can be perceived as misleading. Here you can read more about scope 3 and why it is important.