Indirect emissions: Definition
Indirect emissions consist of emissions from purchased energy (scope 2 emissions) and the value chain (scope 3 emissions) of a company.
For Sustainability Managers
Understanding Indirect emissions is essential for accurately tracking and reducing your organisation's carbon footprint.
For CFOs
Indirect emissions has growing financial implications as climate regulation tightens and investors demand transparency.
For Sustainability Reporting
Accurate measurement of Indirect emissions is required for credible climate reports across all major frameworks.
Related Terms
Carbon dioxide (CO2) emissions
Emissions refer to the discharge of greenhouse gases or their precursors into the atmosphere within a defined region and timeframe. Carbon dioxide emissions, also known as CO2 emissions, arise from the combustion of fossil fuels and cement production. They encompass carbon dioxide released during the use of solid, liquid, and gas fuels, as well as gas flaring.
Direct emissions
Direct emissions encompass those generated by a company's operational activities, such as electricity generation, material processing, waste management, and fleet transportation (scope 1 emissions).
Downstream emissions
Downstream emissions are emissions that arise after a company has sold its products and services. For example, if your company manufactures machinery, the emissions stemming from the machinery's use by customers are considered downstream emissions. Together with upstream emissions or supply chain emissions, they constitute a company's scope 3 emissions.
Emissions boundary
To provide accurate GHG emissions reports, an organisation must initially delineate its emissions boundary. This boundary pertains to the structure of the organisation and the areas of its operations it directly manages. It transparently defines the demarcation between activities under the organisation's control and those beyond its purview.
Emissions reduction strategy
An emissions reduction strategy outlines how an individual, organisation, or nation intends to diminish its greenhouse gas emissions. It establishes objectives, targets, measures, and reporting mechanisms while charting a course of action.