Reporting Scope 1 and Scope 2 emissions

What the cluster covers

The Scope 1+2 cluster has roughly nine questions, all building on each other:

These questions are linked. Many are gated by others. Master the structure once and the whole cluster becomes manageable. For the underlying inventory mechanics (boundary, emission factors, GWP sets) covered at greater depth, see our GHG Scope 1 and 2 course.

The gating chain

The most important concept in this module: the Scope 1 question (Q7.6) requires full Disclosure points on Q7.1 to Q7.5 first.

If you leave any of the following blank, your Scope 1 disclosure collapses:

• Q7.1 (base year)
• Q7.1.1 (base year emissions)
• Q7.1.2 (recalculation policy)
• Q7.1.3 (significance threshold)
• Q7.2 (gases included)
• Q7.4 (consolidation approach)
• Q7.5 (boundary)

The same chain gates Scope 2. A single blank cell on the recalculation policy can cost you 15 to 20 points across Scope 1 and Scope 2 combined, even if your underlying data is excellent.

Q7.1 cluster - base year discipline

The base year is the reference point against which your reduction targets are measured and your year-on-year change is calculated. Once chosen, it should not move.

A scoring-quality base year disclosure includes:

• Year selected (commonly 2018, 2019, 2020 - recent enough to have reliable data, far back enough to allow ambitious targets).
• Reasons for choice (often: matches SBTi guidance, matches when data quality became reliable, aligns with corporate strategic plan).
• Base year emissions (the absolute number, by scope, in tCO2e).
• Coverage (operational scope of the base year inventory; should match current scope).
• Recalculation policy (the criteria you would use to restate the base year).
• Significance threshold (the size of change that triggers recalculation; typically 5 percent of inventory or 5 percent of revenue).

The recalculation policy is the most-skipped element. Without it, your base year is a moving target.

Q7.2 - Gases included

Q7.2 asks which greenhouse gases are included in your inventory. The expected answer covers:

• The seven Kyoto-controlled gases: CO2, CH4, N2O, HFCs, PFCs, SF6, NF3
• Whether you also report black carbon (some companies do for transport sector relevance)
• Methodology for converting non-CO2 gases to CO2-equivalent (typically IPCC AR5 or AR6 GWPs)

A scoring-quality answer:

"Our inventory includes CO2, CH4, N2O, HFCs (refrigerant leaks), PFCs and SF6 (electrical equipment). NF3 is not material to our operations. Non-CO2 gases are converted using IPCC AR6 100-year Global Warming Potentials (GWPs) consistent with current GHG Protocol guidance."

This earns Disclosure tier and feeds Awareness on later questions.

Q7.6 - Gross global Scope 1

Q7.6 asks for one number: gross global Scope 1 emissions for the reporting year, plus optionally up to 5 prior years. We covered this question in detail in the original pilot lesson (now available in the Question Reference); the key points:

• Gross, not net (no offsets, no removals subtracted)
• Global, not just home country
• In metric tonnes CO2e, not pounds, not kg
• Reportable up to 6 years total (current + 5 historical)
• The methodological details column matters for cascading scoring on Q7.9 and Q7.16

Reporting more historical years scores higher (Awareness tier rewards the trend data).

Q7.7 and Q7.8 - Scope 2, location-based and market-based

CDP requires Scope 2 reported under both methodologies:

Both methods are required. The grader expects:

• Location-based number, with grid emission factor sources cited (CEA for India, IEA, country-specific factors)
• Market-based number, with renewable energy contracts disclosed (PPAs, EACs purchased, residual mix used for unmatched consumption)
• Difference between the two, which represents the emission impact of your renewable energy procurement

For most companies pursuing renewables, the market-based number is lower than location-based because it reflects renewable contracts. The gap is the climate strategy in action.

Q7.9 - Methodology disclosure

Q7.9 asks for the methodology behind your inventory. This is where Leadership tier separates from Management.

A Leadership-tier methodology disclosure covers:

• Standard: GHG Protocol Corporate Standard, with any additions (Scope 2 Guidance for market-based)
• Calculation methodology: activity data times emission factor, with sources for each
• Emission factors used: CEA India, DEFRA UK, US EPA, IEA, country-specific grid factors, EPA eGRID, supplier-specific factors
• GWP set: IPCC AR6 100-year (current best practice)
• Data quality: percentage of inventory based on directly measured data versus calculated versus estimated
• Boundary exclusions: any operations excluded (and why), with an estimate of the excluded emissions if material
• Year-on-year changes: any methodology changes from prior year, restated where significant

A weak methodology disclosure is one paragraph. A scoring-quality disclosure is a full table with sources cited per emission category.

Q7.16 - Verification

Q7.16 asks whether your emissions are externally verified, by whom, against what standard, and with what scope coverage.

The Leadership-tier verification has:

• Standard: ISO 14064-3 (Greenhouse Gas Verification) is the most common; ISAE 3410 is also accepted
• Level of assurance: Limited or Reasonable. Reasonable is higher quality.
• Coverage: What percentage of Scope 1, 2, 3 is covered. 100 percent of Scope 1+2 is the typical floor for Leadership.
• Provider: A reputable verifier (Big Four, BSI, Bureau Veritas, DNV, TUV, KPMG, EY, BDO)
• Statement: Attached as an evidence file, with date and signing officer

A response that says "verified" without attaching the statement is read as unsupported. Always attach.

Worked example: how the cluster ties together