GHG Accounting Made Simple: Scope 1, 2 & 3 Explained for Malaysian Businesses

Greenhouse gas (GHG) accounting is becoming a baseline requirement for corporate sustainability. It starts with understanding the three scopes of emissions: Scope 1 (direct), Scope 2 (indirect from electricity), and Scope 3 (indirect from supply chain, waste, travel, etc.).

---

Each scope demands specific data, tools, and management strategies.

For example, a palm oil processor may report Scope 1 emissions from on-site boilers, Scope 2 from grid power, and Scope 3 from upstream fertilizer use or downstream logistics. Scope 3 is often the largest and most complex, yet essential for full climate disclosure.

Reporting platforms like CDP and frameworks such as GHG Protocol and ISO 14064 guide businesses in calculating and verifying emissions. Many countries, including Malaysia, are now requiring GHG disclosures from listed companies, especially in carbon-intensive sectors.

Effective GHG tracking not only improves climate transparency but helps companies identify hotspots for cost savings and reduction opportunities. It's also foundational for setting science-based targets and aligning with investor expectations.

👉 Climate Quest offers comprehensive GHG accounting and climate reporting services to help you meet regulations, secure ESG-linked finance, and progress toward net-zero. [Track your emissions with confidence, with Climate Quest today!]