Direct emissions, referred to as Scope 1 emissions, are greenhouse gases released from sources that a company owns or directly controls. This includes emissions from company-owned boilers, furnaces, vehicles, and any chemical production equipment operated by the company.

Indirect emissions, on the other hand, are greenhouse gases that result from a company’s activities but occur at sources not owned or controlled by the company. These are divided into two categories: Scope 2 and Scope 3 emissions.

Scope 2 emissions are the indirect emissions from the generation of purchased electricity that the company consumes. While the company uses this electricity, the actual emissions happen at the power plants where the electricity is produced.

Scope 3 emissions encompass all other indirect emissions related to the company’s operations. This might include emissions from the extraction and production of materials the company purchases, the transportation of purchased fuels, and the emissions resulting from the use of products and services the company sells.