Indirect emissions

Indirect emissions are greenhouse gas emissions caused by a company's activities but do not originate directly from its own sources. They primarily include emissions from purchased energy (Scope 2) and emissions across the entire value chain (Scope 3).

Indirect emissions are a key part of corporate CO₂ accounting, often making up the largest share of total greenhouse gas emissions. According to the GHG Protocol, they are divided into two main categories:

Scope 2 Emissions

• Emissions from purchased and consumed energy (e.g., electricity, district heating, steam)
• Assigned to the company, as it uses the energy

Scope 3 Emissions

• Encompasses all indirect emissions along the value chain
• Divided into upstream (e.g., raw material extraction, transport) and downstream emissions (e.g., product use, disposal)
• Often the largest source of emissions, but challenging to measure

Measuring and reporting indirect emissions is essential for companies to ensure a complete and transparent Corporate Carbon Footprint (CCF) calculation. Due to regulatory frameworks such as the CSRD (Corporate Sustainability Reporting Directive) and voluntary standards like the Science-Based Targets Initiative (SBTi), accurate tracking of indirect emissions is becoming increasingly important.

For manufacturing companies, indirect emissions are particularly relevant, as they often constitute the majority of their CO₂ footprint. Tanso helps businesses measure and manage indirect emissions through automated calculation methods, industry-specific emissions factor databases, and practical reduction strategies.