What is the difference between direct and indirect emissions in emissions tracki

Updated 9/5/2025

In emissions tracking, direct emissions are those that result directly from sources that are owned or controlled by an organization. These are typically associated with Scope 1 emissions, which include on-site fuel combustion, company vehicles, and fugitive emissions. Indirect emissions, on the other hand, result from an organization’s activities but occur at sources owned or controlled by another entity. They are typically categorized as Scope 2 and Scope 3 emissions. Scope 2 covers indirect emissions from the generation of purchased electricity, steam, heating, and cooling consumed by the reporting company. Scope 3 encompasses all other indirect emissions that occur in the value chain of the reporting company, including both upstream and downstream emissions. Understanding these distinctions is crucial for accurate emissions reporting and management. For instance, the Greenhouse Gas Protocol provides comprehensive guidelines for accounting and reporting these emissions GHG Protocol. More information can also be found in resources like the EPA’s Center for Corporate Climate Leadership. Key Takeaway: Direct emissions are owned/controlled by the organization, while indirect emissions occur outside but due to the organization.