ESRS Standard
ESRS Standard
29. The objective of this DR is to enable an understanding of the undertaking's direct and indirect impacts on climate change as a result of activities in its own operations and in its upstream and downstream value chain.
30. The undertaking shall:
(a) disclose absolute gross GHG emissions generated during the reporting period, expressed as metric tonnes of CO₂eq classified as:
i. scope 1 GHG emissions, including the percentage of scope 1 GHG emissions from the EU Emission Trading System (EU ETS) if it has emissions from this system;
ii. scope 2 GHG emissions (location-based and market-based); and
iii. scope 3 GHG emissions from each significant scope 3 category as a total and per category.
(b) disclose the approach it uses to measure its GHG emissions in accordance with ESRS 2 GDR-M;
(c) for scope 1 and scope 2 GHG emissions disclosed in accordance with paragraph 30(a)(i) and 30(a)(ii), disaggregate emissions between:
i. the consolidated accounting group (for example, for an entity applying IFRS Accounting Standards, this group would comprise the parent and its consolidated subsidiaries); and
ii. other emissions excluded from paragraph 30(c)(i).
31. The undertaking shall disclose its direct biogenic CO₂ emissions from the combustion or biodegradation of biomass separately from scope 1 GHG emissions.
Application Requirements (AR)
Application Requirements (AR)
AR 19 for para. 30 (GHG measurement approach)
Chapter 5 of ESRS 1 General Requirements defines the reporting boundary to be applied, corresponding to financial control as per the GHG Protocol Corporate Accounting and Reporting Standard (2004). Alternatively, the undertaking may use the equity share or operational control approach as defined in the GHG Protocol Corporate Accounting and Reporting Standard (2004).
The provisions in paragraphs 71 (leased assets), 72 (benefit schemes) and AR 36 for paragraph 61 (joint operations) of ESRS 1 General Requirements prevail over the provisions of this standard.
The disaggregation referred to in paragraph 30(c) shall reflect the undertaking's approach to the reporting boundary.
AR 20 for paras. 29 and 30 (Emissions reporting)
When preparing the information for reporting GHG emissions, the undertaking shall:
(a) consider the GHG Protocol Corporate Accounting and Reporting Standard (2004). The undertaking may also consider Commission Recommendation (EU) 2021/2279 or EN ISO 14064-1:2018. In all cases, the requirements of ESRS take precedence over the above-mentioned GHG accounting standards (e.g. regarding reporting boundaries);
(b) include emissions of CO₂, CH₄, N₂O, HFCs, PFCs, SF₆ and NF₃. Additional GHGs may be considered when significant;
(c) use the most recent Global Warming Potential (GWP) values published by the Intergovernmental Panel on Climate Change (IPCC) based on a 100-year time horizon to calculate CO₂eq emissions of non-CO₂ gases. If emission factors based on older GWP values are the most suitable or available, the undertaking can use these and explain in accordance with ESRS 2 GDR-M, paragraph 49, which GWPs the GHG inventory is based on;
(d) not include any removals, any purchased, sold or transferred carbon credits or any GHG allowances in the calculation of GHG emissions; and
(e) not include biogenic emissions of CO₂ from the combustion or biodegradation of biomass in scope 1, 2 and 3. The undertaking shall include non-CO₂ GHG emissions, such as CH₄ and N₂O in the relevant scopes.
AR 21 for para. 30(a) (Scope 1 EU ETS emissions)
For activities covered by the EU Emissions Trading System (ETS), the undertaking shall report on scope 1 emissions following the EU ETS methodology. The EU ETS methodology may also be applied to activities in geographies and sectors that are not covered by the EU ETS provided the methodology is aligned with local jurisdictional rules and relevant for the undertaking.
AR 22 for para. 30(a) (Scope 1 emissions reporting)
When preparing the information on the percentage of scope 1 GHG emissions from EU ETS required under paragraph 30(a), the undertaking shall:
(a) consider GHG emissions from its emission sources that are subject to EU ETS;
(b) ensure the same accounting period for gross scope 1 GHG emissions and GHG emissions regulated under the ETS; and
(c) calculate the share by using the following formula:
% = (GHG emissions (tCO₂eq) from emission sources subject to EU ETS) ÷ (Scope 1 GHG emissions (tCO₂eq))
AR 23 for para. 30(b) (Scope 2 emissions reporting)
When preparing the information on gross scope 2 GHG emissions required under paragraph 30, the undertaking shall:
(a) consider the GHG Protocol scope 2 Guidance (Version 2015), particularly the scope 2 quality criteria in Chapter 7.1 relating to contractual instruments. The undertaking may also consider Commission Recommendation (EU) 2021/2279, Commission Recommendation (EU) 2024/2395 or the relevant requirements for the quantification of indirect GHG emissions from imported energy in EN ISO 14064-1:2018; and
(b) in accordance with ESRS 2 GDR-M, provide information about any contractual instruments that is necessary to inform users' understanding of the undertaking's scope 2 market based GHG emissions.
AR 24 for para. 30(c) (Scope 3 emissions reporting)
When preparing the information on gross scope 3 GHG emissions required under paragraph 30, the undertaking shall:
(a) consider the GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard (Version 2011). The undertaking can also consider Commission Recommendation (EU) 2021/2279 or the relevant requirements for the quantification of indirect GHG emissions from EN ISO 14064-1:2018;
(b) screen its total scope 3 GHG emissions based on the 15 scope 3 categories identified by the GHG Protocol Corporate Standard and GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard (Version 2011), using relevant estimates. Alternatively, the undertaking may screen its indirect GHG emissions based on the categories provided by EN ISO 14064-1:2018, Clause 5.2.4 (excluding indirect GHG emissions from imported energy);
(c) identify and disclose its significant scope 3 categories based on the magnitude of their estimated GHG emissions and other criteria provided by the GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard (Version 2011, p. 61 and 65-68) or EN ISO 14064-1:2018, Annex H.3.2, such as financial spend, influence, related transition risks and opportunities or stakeholder views;
(d) prioritise its inputs and assumptions based on the characteristics of the data (e.g. data from specific activities within the undertaking's upstream and downstream value chain; timely data that faithfully represents the jurisdiction of, and the technology used for, the upstream and downstream value chain activity and its GHG emissions; and data that has been verified);
(e) update scope 3 GHG emissions in each significant category every year on the basis of current activity data and update the full scope 3 GHG inventory at least every three years or on the occurrence of a significant event or a significant change in circumstances;
(f) consider the GHG Accounting and Reporting Standard for the Financial Industry from the Partnership for Carbon Accounting Financials (PCAF), specifically Part A Financed Emissions 'PCAF (2022). The Global GHG Accounting and Reporting Standard Part A: Financed Emissions. Second Edition', if it is a financial institution; and
(g) if applicable, disclose GHG emissions from purchased cloud computing and data centre services as a subset of the overarching scope 3, category 1 'upstream purchased goods and services'.
AR 25 for paras. 29 and 30 (Emissions disaggregation)
The undertaking shall disaggregate its GHG emissions in accordance with the provisions of ESRS 1 General Requirements, Chapter 3.3.2, if applicable. For example, it can disaggregate its GHG emissions by country or geography, operating segments, economic activity, subsidiary, GHG (CO₂, CH₄, N₂O, HFCs, PFCs, SF₆, NF₃ and other GHGs considered by the undertaking) or source type (stationary combustion, mobile combustion, process emissions and fugitive emissions).
AR 26 for paras. 29 and 30 (Emissions disaggregation)
The undertaking may present its GHG emissions in accordance with the table below, populating the rows as relevant in line with its disclosures under paragraph 30. A comparison of the undertaking's emissions over time may be performed by comparing current year emissions to a meaningful comparative, e.g. a GHG emission reduction target base year, indicating the percentage change (reduction/increase) in the corresponding column.
Comparative — Year | Comparative — Emissions | Current Year — Emissions | % Change | |
Scope 1 GHG emissions | ||||
Gross scope 1 GHG emissions (tCO₂eq) | ||||
Percentage of scope 1 GHG emissions from the EU Emissions Trading System (EU ETS) (%) | ||||
Scope 2 GHG emissions | ||||
Gross location-based scope 2 GHG emissions (tCO₂eq) | ||||
Gross market-based scope 2 GHG emissions (tCO₂eq) | ||||
Significant scope 3 GHG emissions | ||||
Total indirect (scope 3) gross GHG emissions (tCO₂eq) | ||||
1. Purchased goods and services | ||||
Sub-category: Cloud computing and data centre services | ||||
2. Capital goods | ||||
3. Fuel and energy-related activities (not included in scope 1 or scope 2) | ||||
4. Upstream transportation and distribution | ||||
5. Waste generated in operations | ||||
6. Business travel | ||||
7. Employee commuting | ||||
8. Upstream leased assets | ||||
9. Downstream transportation | ||||
10. Processing of sold products | ||||
11. Use of sold products | ||||
12. End-of-life treatment of sold products | ||||
13. Downstream leased assets | ||||
14. Franchises | ||||
15. Investments | ||||
Direct biogenic scope 1 emissions |
Good to know
Good to know
The division of emissions into scope 1, 2 and 3 comes from the Greenhouse Gas (GHG) Protocol.
Category | Definition | Examples | Scope for influence |
Scope 1 | Direct emissions from the combustion of fossil fuels (oil, gas, coal) in the company itself, as well as process emissions and fugitive gases. | Company vehicles, own boilers, production plants | High |
Scope 2 | Indirect emissions from purchased energy (e.g. electricity, heat) | Electricity consumption in offices and production sites, district heating | Medium to high |
Scope 3 | All other indirect emissions along the value chain | Supply chain, business travel, use and disposal of products | Variable |
The following sections each give short definitions of the related subcategories and a link to further information from the NetCero greenhouse gas emissions tool for each specific topic. This includes information on how to collect emissions data, the applicable requirements, and worked calculation examples for each category.
Scope 1 emissions
Scope 1 emissions
...are direct greenhouse gas emissions from sources that are owned or controlled by the company – for example from the combustion of fuels in company-owned facilities or vehicles. The company's own operational activities influence them directly.
1.1 Stationary combustion
Category 1.1 covers emissions from stationary combustion processes that take place within a company's operational boundaries. These include, among others:
Boilers,
Furnaces,
Generators,
Industrial processes using fossil fuels,
District heating plants, if they are operated in-house.
Further information:
1.2 Mobile combustion
Category 1.2 covers emissions from mobile combustion processes that take place within a company's operational boundaries. These include, among others:
Company vehicles (cars, vans, lorries, buses),
Construction machinery and equipment with combustion engines,
Forklift trucks and agricultural machinery,
Ships, aircraft and other means of transport owned or operated by the company.
Further information:
1.3 Fugitive emissions
Category 1.3 covers fugitive emissions, which occur through the unintentional release of greenhouse gases from industrial processes or infrastructure. These include, among others:
Leaks from refrigeration and air-conditioning systems,
Escaping emissions from gas transport and storage facilities,
Diffuse emissions from industrial production processes,
Methane release from mines or landfill sites,
Emissions from the operation of high-voltage switchgear (SF6).
Further information:
1.4 Other emissions
Category 1.4 covers other direct greenhouse gas emissions that are not captured in other categories. These include:
Chemical reactions in industrial processes without energy input (e.g. CO₂ release in cement production),
Biogenic emissions from company-owned facilities (e.g. methane from fermentation processes),
Releases from laboratories or research facilities without energy input,
Emissions from waste treatment at the company's site.
Scope 2 emissions
Scope 2 emissions
...arise indirectly from the consumption of purchased energy – in particular electricity, heat, cooling or steam. Although these emissions do not arise in the company itself, they are closely linked to its energy demand and offer concrete reduction opportunities through measures such as energy efficiency or purchasing green electricity.
There are two calculation methods:
Location-based scope 2 emissions
The calculation is based on the average emission factor of the energy supply (e.g. the electricity grid) to which the company's site is connected. This approach shows how emission-intensive the regional energy mix is – regardless of individual energy contracts.Market-based scope 2 emissions
The calculation is based on the company's specific energy contracts and guarantees of origin (e.g. certified renewable sources). This approach shows the effects of the company's individual energy procurement strategy.
2.1 Purchased electricity
Category 2.1 covers emissions from purchased electricity that is used within a company's operational boundaries. They are caused by a company's electricity consumption.
Further information:
2.2 Purchased heat
Category 2.2 covers emissions from purchased heat that is used within a company's operational boundaries. They arise from the supply of energy by external suppliers.
Further information:
2.3 Purchased steam
Category 2.3 covers emissions from purchased steam that is used within a company's operational boundaries. They arise from the supply of steam by external suppliers.
Further information:
2.4 Purchased cooling
Category 2.4 covers emissions from purchased cooling that is used within a company's operational boundaries. They arise from the supply of cooling by external suppliers.
Further information:
Scope 3 emissions
Scope 3 emissions
...are all indirect greenhouse gas emissions that arise outside a company's direct control but are caused by its business activities – for example by suppliers, transport service providers, customer use or disposal of the products.
3.1 Purchased goods and services
Category 3.1 covers all indirect GHG emissions from purchased goods and services – from production to delivery to the company.
Further information:
3.2 Capital goods
Category 3.2 covers all indirect GHG emissions from the production and delivery of capital goods such as machinery, vehicles, buildings or IT infrastructure. Under the GHG Protocol, these emissions must be reported in the year of purchase and must not be amortised over several years.
Further information:
3.3 Fuel- and energy-related activities (not included in scope 1 or scope 2)
Category 3.3 covers upstream emissions from the fuel and electricity supply chain that have not already been included in scope 1 or 2.
These include emissions from extraction, production, transport, grid losses and resold energy (relevant for utilities and energy traders).
Further information:
3.4 Upstream transportation and distribution
Category 3.4 covers all upstream emissions from the transport and distribution of purchased goods and services before they come into the company's possession. This includes both transport by external logistics providers and distribution by suppliers before the goods reach the company.
Important: These emissions differ from scope 3.9 (downstream transportation and distribution), which covers transport when goods are handed over to customers!
Further information:
3.5 Waste generated in operations
Category 3.5 covers all indirect GHG emissions that arise from the disposal of operational waste. This includes emissions from landfilling, incineration, composting and recycling of waste that is not covered under scope 1 or scope 2.
Further information:
3.6 Business travel
Category 3.6 covers all indirect GHG emissions that arise from business travel by employees. This includes emissions from air travel, rail travel, rental cars, private vehicles used for business travel, and other means of transport that are not covered under scope 1 or scope 2.
Further information:
3.7 Employee commuting
Category 3.7 covers all indirect GHG emissions that arise from employees' daily journey to work. This includes emissions from the use of private vehicles and public transport, as well as zero-emission travel (e.g. on foot, by bicycle), where relevant. These emissions are not included in scope 1 or scope 2 and belong to a company's downstream emissions.
Further information:
3.8 Upstream leased assets
Category 3.8 covers all indirect GHG emissions from the use of leased assets that are operated by the reporting company but not owned by it. This applies, for example, to rented office space, production facilities or vehicles that are not covered under scope 1 or scope 2.
Further information:
3.9 Downstream transportation and distribution
Category 3.9 covers all indirect GHG emissions from the transport and distribution of sold products in vehicles and facilities that are not owned or controlled by the organisation. These emissions relate to the downstream supply chain and are not included in scope 1 or scope 2.
Further information:
3.10 Processing of sold products
Category 3.10 covers all indirect GHG emissions that arise when customers further process sold products before they reach their final form of use. These emissions are downstream emissions and are not included in scope 1 or scope 2 of the reporting company.
Further information:
3.11 Use of sold products
Category 3.11 covers all indirect GHG emissions that arise only during the use phase of sold products. These include emissions caused by the energy consumption of products over their lifetime, as well as direct emissions from the use of products that release greenhouse gases (e.g. vehicles, fossil fuels or chemical products).
Further information:
3.12 End-of-life treatment of sold products
Category 3.12 covers all indirect GHG emissions that arise when sold products are disposed of, recycled or otherwise treated at the end of their life cycle. These include emissions from landfilling, incineration, recycling or reuse of products.
Further information:
3.13 Downstream leased assets
Category 3.13 covers all indirect GHG emissions that arise from leased assets that the reporting company rents or leases to other companies or individuals.
Further information:
3.14 Franchises
Category 3.14 covers all indirect GHG emissions that arise from the business activities of franchises that are not directly under the operational control of the reporting company.
Further information:
3.15 Investments
Category 3.15 covers all indirect GHG emissions associated with a company's financial investments. These emissions relate to capital investments, equity holdings, loans and other investments that are not covered under scope 1 or scope 2 of the reporting company.
Further information:
This article has been machine translated. In case of errors, please contact [email protected].