Scope 1 and Scope 2 Emissions Explained for SMEs

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 and how to calculate them.

Scope 1: Direct Emissions

Emissions from sources your company owns or controls. These are the fuels you burn on your premises or in your vehicles.

Building Heating

Most Swiss commercial buildings use one of these:

• 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)
• Wood pellets: 0.035 kg CO2e per kg (KBOB 2009/1:2022 — low because biogenic CO2 is excluded)

Example: An office building consuming 5,000 litres of heating oil per year = 5,000 × 3.24 = 16,200 kg CO2e.

Where to find this data: Your heating fuel invoices show annual consumption. For natural gas, your Gasversorgung invoice shows kWh. For oil, your supplier invoice shows litres delivered.

Company Vehicles

All fuel burned in vehicles the company owns or leases under a finance lease:

• Diesel: 3.24 kg CO2e per litre (KBOB 2009/1:2022)
• Petrol: 3.00 kg CO2e per litre (KBOB 2009/1:2022)

Example: Two company cars consuming 4,000 L diesel total = 4,000 × 3.24 = 12,960 kg CO2e.

Where to find this data: Fuel card statements or expense reports. If employees use personal cars for business, that fuel is Scope 3 (not required in the Basic Module).

Gray Areas for Swiss SMEs

• Leased vehicles: Finance leases = Scope 1 (you control the asset). Operating leases = technically Scope 3, but for VSME Basic Module simplicity, including them in Scope 1 is accepted practice.
• Refrigerant leaks: If your business operates commercial refrigeration (restaurants, supermarkets, cold storage), refrigerant leakage is Scope 1. Most office-based SMEs can ignore this.
• On-site generators: Backup diesel generators are Scope 1, but rarely material for Swiss SMEs with reliable grid power.

Scope 2: Indirect Emissions

Emissions from purchased energy your company consumes but does not generate.

Electricity

• Swiss grid mix: 0.125 kg CO2e per kWh (KBOB 2009/1:2022)

Example: 60,000 kWh = 60,000 × 0.125 = 7,500 kg CO2e.

Location-based vs. market-based: The 0.125 factor is the Swiss grid average (location-based method). If your company purchases certified renewable electricity with guarantees of origin, you may use the market-based method and report a lower factor — potentially near zero. You must document the certificates. QuickVSME supports both methods.

District Heating

If your building is connected to a Fernwärme (district heating) network, those emissions are Scope 2. The emission factor varies by provider and heat source (waste incineration, gas, biomass). Contact your provider for their specific factor, or use the KBOB default of approximately 0.150 kg CO2e/kWh.

How to get the data: Your district heating invoice shows kWh consumed. Some providers (like ERZ Zürich or Services Industriels de Genève) publish their specific emission factor.

Heat Pumps

Electric heat pumps consume electricity (Scope 2). They produce no direct combustion emissions (no Scope 1 contribution). Enter the electricity consumed by the heat pump in your Scope 2 electricity total.

Why No Scope 3 in VSME Basic?

Scope 3 covers value chain emissions: business travel, employee commuting, purchased goods and services, waste disposal, and downstream product use. It is excluded from the VSME Basic Module because:

• It requires data from third parties that SMEs often cannot obtain
• Calculation methods are complex, uncertain, and resource-intensive
• The proportionality principle in the VSME standard recognises that this burden is disproportionate for small businesses
• The EU Value Chain Cap will explicitly protect SMEs from being asked for Scope 3 data

The optional Comprehensive Module (C1–C9) includes Scope 3 for SMEs that choose to go further.

Typical Swiss SME Footprint

A 20-person office-based SME might look like this:

With CHF 5M revenue, the GHG intensity is 24.12 / 5 = 4.82 tCO2e per million CHF.

A manufacturing SME with a fleet and heating-heavy operations would typically be 3-5x higher.

Calculate Yours

QuickVSME calculates Scope 1 and Scope 2 automatically using KBOB factors. Enter your consumption data and the platform handles the rest. Start your declaration.

Sources

• GHG Protocol Corporate Standard
• KBOB Ökobilanzdaten
• Pronovo Guarantees of Origin