Scope 1 and Scope 2 Emissions Explained for SMEs
A clear explanation of Scope 1 and Scope 2 greenhouse gas emissions, what they mean for SMEs, and how to measure each category with practical Swiss examples.
The GHG Protocol classifies emissions into Scope 1, 2, and 3. For the VSME Basic Module, you report Scope 1 and Scope 2. Here is what they mean.
Scope 1: Direct Emissions
Emissions from sources your company owns or controls.
Building Heating
- Heating oil: 3.24 kg CO2e per litre (KBOB Ökobilanzdaten 2009/1:2022)
- Natural gas: 0.230 kg CO2e per kWh (KBOB 2009/1:2022)
Example: 5,000 litres of heating oil = 5,000 × 3.24 = 16,200 kg CO2e.
Company Vehicles
- Diesel: 3.24 kg CO2e per litre (KBOB 2009/1:2022)
- Petrol: 3.00 kg CO2e per litre (KBOB 2009/1:2022)
Example: Two cars consuming 4,000 L diesel = 4,000 × 3.24 = 12,960 kg CO2e.
Other Sources
Less common for SMEs: on-site generators, refrigerant leaks, industrial processes.
Scope 2: Indirect Emissions
Emissions from purchased energy your company consumes.
Electricity
- Swiss mix: 0.125 kg CO2e per kWh (KBOB 2009/1:2022)
Example: 60,000 kWh = 60,000 × 0.125 = 7,500 kg CO2e.
Note: If you purchase certified renewable electricity with guarantees of origin, you may report lower Scope 2 using the market-based method. The 0.125 factor is the location-based Swiss grid average.
District Heating
Emissions from a district heating network are also Scope 2.
Why No Scope 3 in VSME Basic?
Scope 3 covers value chain emissions: business travel, commuting, purchased goods, waste disposal. It is excluded because:
- It requires data from third parties SMEs often cannot obtain
- Calculation methods are complex and resource-intensive
- The proportionality principle recognises this is disproportionate for small businesses
Typical SME Footprint
| Source | Category | Emissions | |--------|----------|------------------| | Natural gas heating | Scope 1 | 6,900 kg CO2e | | Company car (diesel) | Scope 1 | 9,720 kg CO2e | | Electricity | Scope 2 | 7,500 kg CO2e | | Total | | 24,120 kg CO2e |
Measure Yours
QuickVSME calculates Scope 1 and Scope 2 automatically using KBOB factors. Start your declaration today.
Sources
QuickVSME Team • Sustainability Experts