Key Points
- Scope 1 covers only direct emissions from owned or controlled sources; purchased electricity falls under Scope 2.
- ESRS E1-6 requires disclosure of gross Scope 1 GHG emissions in metric tonnes of CO2 equivalent, with no netting against carbon credits or removals.
- The amended ESRS E1 (exposure draft July 2025) reduced climate-related datapoints by approximately 53% but retained Scope 1 as a mandatory disclosure.
- Entities operating under EU ETS allowances must separately identify the portion of Scope 1 emissions covered by the scheme.
What is Scope 1 Emissions?
The GHG Protocol Corporate Standard divides an entity's emissions into three scopes. Scope 1 captures everything the entity releases directly: natural gas burned in boilers, diesel consumed by company-owned trucks, process emissions from chemical reactions, and fugitive leaks from refrigeration or air-conditioning units. The boundary depends on whether the entity applies the operational control or the equity share consolidation approach (GHG Protocol Corporate Standard, Chapter 3). Under ESRS E1, paragraph 44 requires the entity to disclose gross Scope 1 GHG emissions separately from Scope 2 and Scope 3, measured in metric tonnes of CO2 equivalent.
The entity must cover all seven Kyoto Protocol gases (CO2, CH4, N2O, HFCs, PFCs, SF6, NF3) and may disaggregate by country, operating segment, or source type (stationary combustion, mobile combustion, process emissions, fugitive emissions). ESRS E1.46 directs the entity to apply the measurement and calculation principles in ESRS 1 paragraphs 62 to 67. Carbon credits and GHG removals cannot reduce the gross figure; the standard requires them reported separately so readers can distinguish operational performance from offset purchases.
Worked example: Rossi Alimentari S.p.A.
Client: Italian food production company, FY2025, revenue EUR 67M, IFRS reporter, first-time CSRD reporter. Rossi operates two processing plants in Emilia-Romagna and a fleet of 38 refrigerated delivery vehicles.
Step 1 — Define the organisational boundary
Rossi applies the operational control approach. Both plants and the vehicle fleet are under Rossi's operational control. A 40%-owned joint venture operating a third plant in Puglia falls outside the boundary because Rossi does not hold operational control.
Step 2 — Identify and categorise emission sources
The sustainability team maps four source categories. Stationary combustion: natural gas boilers at both plants (consumption 2.1 million m3 per year). Mobile combustion: diesel for 38 refrigerated trucks (780,000 litres per year). Process emissions: CO2 released during fermentation in one product line (estimated 120 tonnes CO2e). Fugitive emissions: refrigerant leaks from cold-storage units and vehicle refrigeration systems (R-404A, estimated 340 kg lost per year, converted to 1,330 tonnes CO2e using GWP of 3,922).
Step 3 — Calculate gross Scope 1 emissions
Stationary combustion: 2,100,000 m3 x 2.0 kg CO2e/m3 = 4,200 tonnes CO2e. Mobile combustion: 780,000 litres x 2.68 kg CO2e/litre = 2,090 tonnes CO2e. Process emissions: 120 tonnes CO2e. Fugitive emissions: 1,330 tonnes CO2e. Total gross Scope 1: 7,740 tonnes CO2e.
Step 4 — Disclose and reconcile
Rossi reports 7,740 tonnes CO2e as gross Scope 1 in its sustainability statement. None of Rossi's operations fall under the EU ETS, so no ETS sub-disclosure is required. The figure is presented separately from Scope 2 (purchased electricity) and Scope 3 (upstream supply chain, employee commuting).
Conclusion: Rossi's gross Scope 1 figure of 7,740 tonnes CO2e is defensible because each source type traces to verifiable activity data, the emission factors are drawn from recognised databases, and the organisational boundary is documented under a stated consolidation approach.
Why it matters in practice
- Teams frequently report a single aggregated GHG figure without separating Scope 1 from Scope 2 and Scope 3. ESRS E1.44 requires separate disclosure of each scope. An aggregated number prevents the assurance provider from evaluating whether direct operational emissions have been distinguished from purchased energy and value chain impacts, and it prevents users from tracking year-on-year changes in the entity's direct footprint.
- Fugitive emissions (refrigerant leaks, process venting) are routinely underestimated or omitted because activity data is harder to obtain than fuel invoices. The GHG Protocol Corporate Standard Chapter 4 requires inclusion of all material sources. For entities with large cold-chain operations, fugitive emissions from high-GWP refrigerants can exceed mobile combustion totals, making the omission material.
Scope 1 vs. Scope 2 emissions
| Dimension | Scope 1 | Scope 2 |
|---|---|---|
| What it covers | Direct emissions from owned or controlled sources | Indirect emissions from purchased electricity, heat, steam, or cooling |
| Source examples | On-site boilers, company vehicles, process releases, refrigerant leaks | Grid electricity consumed at the entity's facilities |
| Entity's control | The entity directly controls the combustion or release | The entity controls consumption volume but not the generation source |
| Reporting methods | One method: calculate from activity data and emission factors | Two methods: location-based (grid average) and market-based (contractual instruments) |
| Reduction levers | Fuel switching, electrification, process redesign, leak prevention | Renewable energy procurement, power purchase agreements, on-site generation (which shifts emissions to Scope 1 if combustion-based) |
The distinction matters on engagements because misclassifying purchased steam as Scope 1 (or omitting it from Scope 2) distorts both figures. The auditor verifying ESRS E1-6 disclosures checks whether the entity correctly allocated each energy source to the right scope before testing the underlying calculations.
Related terms
Frequently asked questions
How do I document Scope 1 emissions in the audit file?
Record the organisational boundary and consolidation approach, the complete list of emission sources by category, the activity data for each source (fuel consumption, refrigerant top-up volumes), the emission factors and their provenance, and the calculation linking activity data to tonnes CO2e. ESRS E1.46 requires alignment with the measurement principles in ESRS 1.62–67. The assurance provider traces each reported figure back to these source records.
Does Scope 1 include emissions from leased assets?
It depends on the consolidation approach. Under the operational control approach, a leased asset operated by the entity falls within Scope 1. Under the equity share approach, only the entity's ownership percentage counts. The GHG Protocol Corporate Standard Chapter 3 sets out both approaches. The entity must apply one consistently and disclose which it selected per ESRS E1.44.
Do Scope 1 emissions need third-party assurance under the CSRD?
Yes. The CSRD requires at least limited assurance on the full sustainability statement, which includes the ESRS E1-6 GHG disclosures. The assurance provider evaluates whether the reported Scope 1 figure is free from material misstatement. ISSA 5000, effective for periods beginning on or after 15 December 2026, provides the international framework for that engagement.