Scope 1, 2 and 3 Emissions Explained for Indian Companies (With BRSR Context)

Every net zero target, BRSR filing and customer ESG questionnaire eventually comes down to three numbers: your Scope 1, Scope 2 and Scope 3 emissions. The framework comes from the GHG Protocol, the global standard for corporate carbon accounting. Here is what each scope actually means for an Indian company — and where most first-time reporters go wrong.

Scope 1: emissions you create directly

Scope 1 covers emissions from sources your company owns or controls: diesel generators, company vehicles, boilers and furnaces burning coal or gas, process emissions from chemical reactions, and refrigerant leaks. If fuel is combusted on your premises or in your fleet, it is Scope 1.

Scope 2: emissions from the electricity you buy

Scope 2 is the indirect emissions from purchased electricity, steam, heating and cooling. For most Indian offices and many factories, grid electricity is the single largest emission source, because India's grid is still coal-heavy. This is also the easiest scope to cut: open access renewable power, rooftop solar and energy-efficiency upgrades all reduce Scope 2 directly.

Scope 3: everything in your value chain

Scope 3 covers the 15 categories of emissions that happen because of your business but outside your walls: purchased goods and raw materials, inbound and outbound logistics, business travel, employee commuting, use of sold products, and end-of-life disposal. For most companies, Scope 3 is 70–90% of the total footprint — and it is where customers, investors and standards like SBTi increasingly focus.

What BRSR actually requires

SEBI's Business Responsibility and Sustainability Report makes Scope 1 and Scope 2 disclosure (with intensity ratios) an essential indicator for the top listed companies, while Scope 3 sits in leadership indicators — voluntary for now, but the direction of travel is clear, and BRSR Core brings assurance requirements into the picture. Companies that wait until Scope 3 becomes mandatory will be reconstructing years of supplier data under deadline pressure.

How to get started

• Set an organisational boundary (operational control is the most common choice).

• Collect 12 months of fuel bills, electricity bills and refrigerant top-up records — that gets you Scope 1 and 2.

• Screen all 15 Scope 3 categories, then measure the 3–5 that dominate your footprint instead of chasing all of them at once.

• Document every emission factor and assumption so the numbers survive assurance.

Csquare runs GHG accounting and ESG reporting engagements end to end — from your first baseline to assurance-ready BRSR disclosure. For a structured starting point, see our 90-day net zero baseline plan or contact us.