Overview
Scope 1 and Scope 2 emissions are a core part of any greenhouse gas (GHG) inventory. In the Carbon Ledger, transactions that fall under these categories are treated differently from Scope 3 emissions because spend-based estimates are not sufficient for accurate reporting.
This article explains how Scope 1 and 2 transactions are handled in the Carbon Ledger, why no spend-based calculation is applied, and where you should record your activity data.
Scope 1 and 2 in the Carbon Ledger
When a transaction relates to Scope 1 or 2 emissions, it can be reconciled to the correct scope in the Carbon Ledger. Examples include:
Scope 1: Direct fuel purchases, company-owned vehicle expenses.
Scope 2: Electricity bills, purchased steam, heating, or cooling.
Once reconciled, these transactions will:
Be marked as Scope 1 or 2 in the Carbon Ledger.
Show a status of ‘Reconciled’.
Why No CO₂e Calculation is Made in the Carbon Ledger
Unlike Scope 3 categories (where spend-based methods are often used as a proxy), Scope 1 and 2 require activity data as the minimum standard for a robust GHG inventory.
This means:
No spend-based emission factor is applied in the Carbon Ledger.
The system does not calculate CO₂e for these transactions.
Instead, marking them as Scope 1 or 2 in the Carbon Ledger demonstrates that the transaction has been reviewed and classified appropriately.
The actual activity data (such as fuel or electricity consumption) is then entered separately in the Accounting section of the assessment, where Scope 1 and 2 emissions are calculated.
Where to Enter Scope 1 and 2 Activity Data
The actual emissions from Scope 1 and 2 are calculated in the Accounting section of your assessment. Here you can enter:
Fuel consumption (litres, kWh, or other units).
Electricity and energy consumption data.
Any other relevant activity data that directly measures energy use or fuel consumption.
This is where emission factors are applied, and your CO₂e totals for Scope 1 and 2 are calculated.
Key Takeaways
Scope 1 and 2 transactions can be reconciled in the Carbon Ledger but are not calculated using spend-based methods.
These transactions are marked as ‘Reconciled’ to the appropriate scope.
Activity data must be entered in the Accounting section to generate CO₂e figures.