Key Takeaways
Scope 1 emissions come from sources you own; Scope 2 from the energy you buy; Scope 3 from everything else in your value chain
Scope 3 is usually the largest share (70–90% of total footprint), the hardest to measure and increasingly mandatory to report
A credible net zero strategy requires measuring all three scopes and reducing emissions before turning to carbon credits
"Carbon contribution" is now the preferred term over "offsetting" – it is more accurate, more defensible and what regulators expect
Regulatory disclosure requirements are expanding globally: CSRD, UK SRS and ISSB S1/S2 all extend to Scope 3
Global greenhouse gas emissions reached an all-time high of 60.63 billion tonnes of CO₂e in 2025. Fossil fuel CO₂ alone hit 38.1 billion tonnes, a figure that keeps climbing despite accelerating renewable energy deployment worldwide.
For businesses, regulation is tightening fast. The newly published UK Sustainability Reporting Standards (UK SRS) signal a shift towards mandatory, globally aligned climate disclosure, including Scope 1, 2 and 3 emissions. The EU's Corporate Sustainability Reporting Directive (CSRD) is already requiring large companies to report across all three scopes. The Science Based Targets initiative (SBTi) now counts over 10,000 companies with validated targets worldwide.
Understanding Scope 1, 2 and 3 emissions is no longer optional for any organisation serious about decarbonisation, regulatory compliance and stakeholder trust. This guide covers what each scope means, how to measure and reduce emissions, how carbon markets and Renewable Energy Certificates (RECs) fit in, and how to build a credible net zero pathway.
What Are Scope 1, 2 and 3 Emissions?
The GHG Protocol Corporate Accounting and Reporting Standard is the global standard for measuring and managing greenhouse gas emissions. Developed by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD), it provides the frameworks used by over 90% of Fortune 500 companies and underpins virtually every major reporting framework, including SECR, CSRD, CDP, TCFD and SBTi.
The GHG Protocol divides a company's emissions into three scopes, based on where in the value chain they occur and who controls the source.
| Scope | Definition | Examples | Who Is Responsible |
|---|---|---|---|
| Scope 1 | Direct emissions from owned or controlled sources | Gas boilers, company vehicles, on-site manufacturing, refrigerant leaks | The reporting organisation |
| Scope 2 | Indirect emissions from purchased energy | Electricity, heat, steam or cooling bought from a utility provider | The reporting organisation (consumption); energy provider (generation) |
| Scope 3 | All other indirect emissions across the value chain | Business travel, purchased goods, freight, employee commuting, product use, waste, investments | Shared across the value chain; reported by the organisation but often generated by suppliers, customers or third parties |
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The reason the GHG Protocol separates emissions this way is to prevent double-counting while ensuring accountability. Scope 1 captures what you directly combust or release. Scope 2 captures your energy demand signal. Scope 3 captures everything else, and it is almost always the dominant share.
Understanding all three scopes is essential because regulatory frameworks increasingly require it. Reporting obligations vary by jurisdiction: SECR currently mandates Scope 1 and 2 reporting for qualifying companies in the UK, while the EU CSRD and the incoming UK SRS extend requirements to Scope 3.
What Are Scope 1 Emissions and How Do You Measure Them?
Scope 1 emissions are direct greenhouse gas emissions from sources that your organisation owns or controls. They are the most straightforward to measure because the data sources (fuel bills, fleet records, refrigerant logs) sit within your own operations.
Scope 1 example: A distribution company with 50 diesel vans and gas heating across three warehouses might report around 800 tCO₂e of Scope 1 emissions per year.
Common sources of Scope 1 emissions include:
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Stationary combustion: natural gas boilers, diesel generators, on-site furnaces and process heaters
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Mobile combustion: company-owned or leased vehicles, including cars, vans, HGVs and forklifts
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Process emissions: chemical reactions in manufacturing (e.g. cement clinker production, steel-making)
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Fugitive emissions: refrigerant leaks from HVAC and cooling systems, methane from gas pipelines
How to Measure Scope 1 Emissions
The standard approach is activity data x emission factor. You gather consumption data (e.g. litres of diesel, cubic metres of natural gas) and multiply by the relevant emission factor. DEFRA publishes annually updated conversion factors for UK reporting; the IPCC provides the equivalent global reference. Most other national reporting frameworks use comparable methodologies.
Useful data sources include:
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Energy audits and utility invoices
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Fleet telematics systems
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Refrigerant logs
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Energy audit compliance data (e.g. ESOS in the UK, ISO 50001 internationally)
Use Thallo's free carbon footprint calculator to estimate your Scope 1 and 2 baseline before commissioning a full assessment.
Carbon Market Instruments for Scope 1
For emissions that cannot be eliminated through operational efficiency or fuel switching, several carbon market mechanisms apply:
| Instrument | Applicability |
|---|---|
| Compliance schemes (UK ETS, EU ETS, others) | Covered organisations must surrender allowances for direct emissions |
| CORSIA | For aviation operators globally |
| VCM credits (Gold Standard, Verra VCS) | For residual emissions not covered by compliance schemes |
What Are Scope 2 Emissions and How Do You Measure Them?
Scope 2 emissions are indirect emissions from the generation of purchased electricity, heat, steam or cooling that your organisation consumes. The GHG Protocol assigns responsibility to the energy consumer, because your purchasing decisions drive the demand signal. This applies regardless of where in the world your operations are located.
Scope 2 example: An office consuming 500 MWh of grid electricity per year would report roughly 95 tCO₂e under the location-based method. Under the market-based method, purchasing a renewable electricity tariff backed by energy certificates could reduce that figure to zero.
Location-Based vs Market-Based Accounting
The GHG Protocol requires organisations to report Scope 2 emissions using two methods:
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Location-based method: applies the average grid emission factor for the region where electricity is consumed. National bodies (such as DEFRA in the UK) publish annual grid average factors; equivalent national factors exist for most major markets.
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Market-based method: applies an emission factor specific to the energy product contractually purchased. If you purchase 100% renewable electricity backed by energy certificates, your market-based Scope 2 can be reported as zero.
The distinction matters because the market-based method rewards organisations that actively procure low-carbon energy. The location-based method, by contrast, reflects the physical reality of the grid regardless of what energy product you purchased.
The GHG Protocol's Scope 2 Guidance requires both figures to be disclosed.
Scope 2 Measurement Approach
Scope 2 measurement relies on electricity bills, heat and cooling invoices, and the relevant emission factors. Smart metering and half-hourly consumption data improve accuracy significantly, and are increasingly expected for regulatory compliance and CDP disclosure across most major jurisdictions.
Renewable Energy Instruments for Scope 2
Several instruments can reduce or eliminate market-based Scope 2 emissions:
| Instrument | Description |
|---|---|
| RECs (Renewable Energy Certificates) | Tradeable certificates proving one MWh was generated from a renewable source. The international standard. |
| REGOs (Renewable Energy Guarantees of Origin) | The UK-specific equivalent, issued by Ofgem. |
| I-RECs (International Renewable Energy Certificates) | Used for operations in markets without mature certificate schemes. |
| PPAs (Power Purchase Agreements) | Long-term contracts to buy renewable electricity directly from a generator. |
| Certificate-backed green tariffs | Retail electricity tariffs bundled with certificates, offering a simpler route for smaller organisations. |
By retiring RECs or equivalent certificates against your electricity consumption, you can legitimately report market-based Scope 2 emissions as zero. It is one of the most cost-effective and immediate decarbonisation levers available to any organisation, anywhere in the world.
What Are Scope 3 Emissions and How Do You Measure Them?
Scope 3 emissions are all other indirect emissions that occur across your organisation's value chain, both upstream and downstream. For most organisations, Scope 3 represents between 70% and 90% of total emissions. It is also the most challenging scope to measure because the data sits outside your direct control, in supplier operations, logistics networks, customer behaviour and end-of-life processes.
Scope 3 example: For a retail business, purchased goods and freight logistics typically account for more than 80% of total Scope 3 emissions, making Category 1 (purchased goods and services) and Category 4 (upstream transportation) the priority categories to address first.
The 15 GHG Protocol Scope 3 Categories
Upstream (Categories 1–8):
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Purchased goods and services
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Capital goods
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Fuel- and energy-related activities
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Upstream transportation and distribution
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Waste generated in operations
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Business travel
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Employee commuting
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Upstream leased assets
Downstream (Categories 9–15):
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Downstream transportation and distribution
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Processing of sold products
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Use of sold products
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End-of-life treatment of sold products
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Downstream leased assets
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Franchises
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Investments
Scope 3 Measurement Approaches
| Method | How It Works | Accuracy | Best For |
|---|---|---|---|
| Spend-based | Multiplies procurement spend by sector-average emission factors | Lower | Quick screening |
| Activity-based | Uses physical data (tonnes, km) with specific emission factors | Higher | Detailed assessment |
| Supplier-specific | Uses primary data provided directly by suppliers | Highest | Gold standard reporting |
| Hybrid | Combines approaches by category | Variable | Most large organisations |
Why Scope 3 Matters Now
Regulatory pressure is mounting globally. The EU CSRD requires Scope 3 reporting where material. The SBTi Corporate Net-Zero Standard requires companies setting net zero targets to address Scope 3 if it exceeds 40% of total emissions. In the UK, the new UK SRS framework aligns with ISSB standards and will include Scope 3 disclosure. TCFD and CDP both expect Scope 3 reporting as part of climate risk assessment, and these frameworks apply internationally.
Carbon Market Instruments for Scope 3
For residual Scope 3 emissions, high-quality carbon credits verified to Gold Standard or Verra VCS can form part of a credible climate contribution strategy. Nature-based solutions, including reforestation, mangrove restoration and soil carbon, deliver measurable co-benefits alongside the carbon impact. Carbon insetting, where a company invests in emissions reductions within its own supply chain, is an emerging approach that addresses Scope 3 at source.
Organisations looking to buy carbon credits for Scope 3 contributions should prioritise verified, high-integrity credits and assess each project against additionality, permanence and co-benefit criteria.
How Carbon Markets and RECs Support Each Scope
Understanding which carbon market instrument applies to which scope is essential for building a credible decarbonisation strategy. This section also covers the important shift in language from "offsetting" to "contribution."
A Note on Terminology: "Offsetting" vs "Contribution"
The language around carbon credits is changing. The term "offsetting" implies that purchasing credits cancels out or neutralises emissions, which is increasingly seen as misleading and carries growing legal risk. The SBTi, the Voluntary Carbon Markets Integrity Initiative (VCMI) and Carbon Market Watch have all moved towards "carbon contribution" or "beyond value chain mitigation (BVCM)" as the preferred framing. Under this model, companies purchase high-quality carbon credits as a positive contribution to global climate action, in addition to reducing their own emissions, rather than as a substitute for doing so.
The practical difference: "offsetting" suggests your emissions have been cancelled; "contribution" signals you are funding verified climate action while continuing to reduce your own footprint. The latter is more defensible, more honest and increasingly what regulators and investors expect.
Compliance vs Voluntary Markets
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Compliance markets (UK ETS, EU ETS, California Cap-and-Trade and equivalents globally) impose a legal cap on emissions from covered sectors
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Voluntary carbon markets allow organisations to purchase carbon credits beyond regulatory requirements, typically used for Scope 1 residuals and Scope 3 contributions
Matching Instruments to Scopes
| Scope | Market Instruments |
|---|---|
| Scope 1 | Compliance allowances (ETS schemes), CORSIA credits (aviation), VCM credits (Gold Standard, Verra VCS, CDM, CAR, ACR) |
| Scope 2 | RECs, REGOs, I-RECs, PPAs, certificate-backed green tariffs |
| Scope 3 | VCM contributions, carbon insetting, supply chain engagement programmes, nature-based solutions |
Carbon Credits vs RECs: What Is the Difference?
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A carbon credit represents one tonne of CO₂e avoided or removed from the atmosphere, generated by a verified emissions reduction project. When used as a climate contribution rather than a direct offset, it funds verified action beyond your own value chain. Thallo's definitive buyer's guide to carbon credits covers how to select and evaluate them.
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A REC (or REGO / I-REC) represents one megawatt-hour of renewable electricity generated. It does not directly represent a tonne of CO₂e but proves renewable generation occurred. RECs are specifically designed for Scope 2 market-based accounting.
Quality Standards and Avoiding Greenwashing
When purchasing carbon credits, look for verification under recognised standards: Gold Standard, Verra VCS, CDM, CAR and ACR. The ICVCM has approved Core Carbon Principles (CCP) labels for high-integrity credits, with the first CCP-approved credits entering the market in 2025. These standards apply globally, not just in specific markets.
Three quality criteria to assess regardless of where the project is located:
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Additionality: would the emissions reduction have happened without the credit revenue?
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Permanence: will the carbon stay out of the atmosphere long-term?
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Co-benefits: does the project deliver social or environmental benefits beyond carbon?
Decision Matrix: Which Instrument Is Right for Your Scope?
| If your priority is… | Consider |
|---|---|
| Reducing Scope 1 compliance costs | ETS scheme optimisation, operational efficiency |
| Contributing to residual Scope 1 reductions | Gold Standard or Verra VCS credits |
| Eliminating market-based Scope 2 | RECs / REGOs (UK) / I-RECs (international), PPAs |
| Addressing Scope 3 at source | Carbon insetting, supplier engagement |
| Contributing to residual Scope 3 climate action | High-quality VCM credits, nature-based solutions |
Building a Net Zero Roadmap: From Baseline to Net Zero
A credible net zero pathway follows a clear sequence: measure, reduce, contribute and report. Jumping straight to buying carbon credits without meaningful reductions is not net zero; it is compensation in all but name, and it will not withstand scrutiny from SBTi, investors or regulators.
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Establish your emissions baseline: Measure Scope 1, 2 and 3 emissions for a defined baseline year using the GHG Protocol Corporate Standard.
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Set science-based reduction targets: Align with the SBTi's Corporate Net-Zero Standard: near-term targets (5–10 years) and long-term targets (by 2050 at the latest) consistent with limiting warming to 1.5°C.
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Implement reduction actions: Prioritise energy efficiency, electrification of heat and transport, renewable energy procurement, supply chain engagement and process innovation.
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Contribute to verified climate projects: Use high-quality carbon removal credits (not avoidance-only credits) to address residual emissions as a climate contribution. The SBTi requires removals for net zero.
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Verify and report: Submit targets and progress for independent verification. Report through CDP, TCFD and applicable national disclosure frameworks.
Regulatory Reporting Obligations
The specific frameworks that apply will depend on where your business is incorporated and operates. The table below covers the most significant current requirements.
| Framework | Jurisdiction | Status |
|---|---|---|
| SECR | UK | Mandatory for qualifying companies (Scope 1 and 2). Applies to quoted companies, large unquoted companies and LLPs meeting two of three thresholds: 250+ employees, £36M+ turnover, or £18M+ balance sheet total. |
| ESOS Phase 3 | UK | Progress reports due December 2026; Phase 4 qualification date 31 December 2026 |
| UK SRS | UK | Published February 2026; FCA mandatory reporting rules expected Autumn 2026 |
| CSRD | EU | Scope 3 required where material; phased in from 2024 onwards |
| ISSB S1 and S2 | Global | Basis for national adoption; already adopted or in adoption in 20+ jurisdictions |
Frequently Asked Questions
What is the difference between Scope 1, 2 and 3 emissions?
Scope 1 emissions are direct emissions from sources an organisation owns or controls, such as gas boilers and company vehicles. Scope 2 emissions are indirect emissions from purchased electricity, heat or cooling. Scope 3 emissions cover all other indirect emissions across the value chain, including purchased goods, business travel, employee commuting and product end-of-life. Together, the three scopes provide a complete picture of an organisation's greenhouse gas footprint under the GHG Protocol framework. Most companies find Scope 3 is by far the largest category, often accounting for 70–90% of total emissions.
Are Scope 3 emissions mandatory to report?
Requirements vary by jurisdiction. In the EU, the CSRD requires Scope 3 reporting where material, and is being phased in from 2024. In the UK, the newly published UK Sustainability Reporting Standards (UK SRS), aligned with ISSB S1 and S2, will include Scope 3 disclosure requirements, with FCA mandatory rules expected in autumn 2026. Companies setting Science Based Targets through the SBTi are also required to include Scope 3 if it represents more than 40% of total emissions.
What is the GHG Protocol and why does it matter?
The GHG Protocol Corporate Accounting and Reporting Standard is the world's most widely used greenhouse gas accounting framework. Developed by the World Resources Institute and the World Business Council for Sustainable Development, it underpins virtually every major reporting regulation globally, including SECR, CSRD, CDP, TCFD and SBTi. It defines the Scope 1, 2 and 3 classification system and provides detailed guidance on measurement methodologies, boundary setting and data quality.
How do I calculate my company's carbon footprint?
To calculate your company's carbon footprint, gather activity data for each emission source (fuel consumption, electricity use, travel records, procurement spend) and multiply by the relevant emission factor. DEFRA publishes annual conversion factors for UK reporting; equivalent national factors exist for most jurisdictions, and the IPCC provides global defaults. Start with Scope 1 and 2, then conduct a Scope 3 screening using spend-based emission factors to identify the most material categories. Use Thallo's free carbon footprint calculator to estimate your Scope 1 and 2 baseline quickly.
What are Renewable Energy Certificates (RECs) and how do they work?
Renewable Energy Certificates (RECs) are tradeable instruments that certify one megawatt-hour of electricity was generated from a renewable source such as wind, solar or hydro. When an organisation purchases and retires RECs equal to its electricity consumption, it can report market-based Scope 2 emissions as zero under the GHG Protocol. In the UK, the equivalent instrument is the REGO (Renewable Energy Guarantee of Origin), issued by Ofgem. I-RECs serve the same function in markets without a domestic certificate scheme.
Can carbon credits eliminate Scope 1 emissions?
Carbon credits can contribute to climate action beyond your direct Scope 1 emissions but do not technically eliminate them. Credits represent emission reductions or removals achieved elsewhere, for example through reforestation or methane capture projects. Under best practice (and the SBTi's guidance), credits should only be used to address residual emissions that remain after all feasible reduction measures have been implemented. Relying on credits without genuine operational reductions is not consistent with credible net zero claims.
What is the difference between location-based and market-based Scope 2?
Location-based Scope 2 uses the average grid emission factor for the region where electricity is consumed, reflecting the physical carbon intensity of the local grid. Market-based Scope 2 uses an emission factor specific to the energy product contractually purchased. If an organisation purchases 100% renewable electricity backed by retired certificates, its market-based Scope 2 can be zero even if the grid average is carbon-intensive. The GHG Protocol Scope 2 Guidance requires both figures to be disclosed.
How much do carbon credits cost?
Carbon credit prices vary significantly depending on project type, verification standard and credit quality. In 2025, high-rated credits averaged around $14.80 per tonne of CO₂e, while lower-quality credits traded at approximately $3.50 per tonne. Nature-based credits from reforestation or conservation projects typically range from $10–25 per tonne. High-integrity removal credits from direct air capture can exceed $400 per tonne. The voluntary carbon market reached $2.52 billion in value in 2025 and is projected to grow significantly by 2030.
What is the Science Based Targets initiative (SBTi)?
The Science Based Targets initiative (SBTi) is a partnership between CDP, the United Nations Global Compact, the World Resources Institute and WWF. It provides a framework for companies to set greenhouse gas reduction targets consistent with the Paris Agreement goal of limiting warming to 1.5°C. The SBTi's Corporate Net-Zero Standard requires both near-term targets (5–10 years) and long-term net zero targets (by 2050). Over 10,000 companies have validated science-based targets as of early 2026.
What is the difference between net zero and carbon neutral?
Carbon neutral means an organisation has balanced its measured emissions by purchasing an equivalent amount of carbon credits, often without requiring deep decarbonisation. Net zero, as defined by the SBTi, requires an organisation to reduce emissions across all scopes by at least 90% from its baseline and then address residual emissions using permanent carbon removal credits. Net zero is a far more demanding standard, and the gap between the two is where most greenwashing risk sits.
What is the difference between "offsetting" and a "carbon contribution"?
"Offsetting" implies that purchasing carbon credits cancels out or neutralises your emissions. "Carbon contribution" (the term now preferred by the SBTi, VCMI and much of the climate science community) means funding verified climate action beyond your own value chain, in addition to reducing your emissions, without claiming your footprint has been erased. The shift matters: contribution language is more legally defensible, more honest and increasingly expected by regulators and investors.
How long does a Scope 3 emissions assessment take?
A Scope 3 emissions assessment typically takes between 4 and 12 weeks, depending on the complexity of the organisation and the availability of data. A rapid spend-based screening can be completed in 4–6 weeks. A more detailed activity-based assessment involving supplier engagement can take 8–12 weeks or longer. Subsequent years are faster as data collection processes and supplier relationships mature.
What software or tools are used to measure Scope 3 emissions?
Common tools for Scope 3 measurement include dedicated carbon accounting platforms that automate data collection and apply emission factors from databases like DEFRA, ecoinvent and EXIOBASE. Spend-based calculations often use environmentally extended input-output (EEIO) models. For larger organisations, enterprise sustainability management systems from SAP and Salesforce (Net Zero Cloud) integrate emissions data across operations and supply chains.
Carbon Emissions Glossary
GHG Protocol: The world's most widely used greenhouse gas accounting and reporting standard, providing the Scope 1, 2 and 3 framework adopted by governments, businesses and reporting bodies globally.
Emission factor: A coefficient that converts activity data (e.g. litres of fuel, kWh of electricity) into greenhouse gas emissions, usually expressed as kg CO₂e per unit of activity. DEFRA and the IPCC publish widely used factors.
Carbon credit: A tradeable certificate representing one tonne of CO₂e reduced, avoided or removed from the atmosphere, generated by a verified emissions reduction project.
Carbon contribution: The preferred term (used by SBTi, VCMI and Carbon Market Watch) for the use of carbon credits as a positive addition to climate action, rather than as a substitute for direct emission reductions. Distinct from "offsetting," which implies emissions have been cancelled.
REC (Renewable Energy Certificate): A market instrument certifying that one MWh of electricity was generated from a renewable source. Used to substantiate renewable energy procurement claims under the GHG Protocol's market-based method.
REGO (Renewable Energy Guarantee of Origin): The UK-specific renewable energy certificate, issued by Ofgem, confirming that one MWh of electricity was generated from an eligible renewable source.
I-REC (International Renewable Energy Certificate): The internationally recognised equivalent of a REGO, used in markets that do not have a domestic certificate scheme.
Additionality: The principle that an emissions reduction project would not have occurred without the revenue from carbon credit sales. A key quality criterion for carbon credits.
Co-benefits: Positive social, environmental or economic outcomes generated by a carbon project beyond the direct climate benefit, such as biodiversity conservation or job creation.
Market-based accounting: A Scope 2 reporting method that uses emission factors specific to the energy product contractually purchased, rather than the regional grid average.
Location-based accounting: A Scope 2 reporting method that applies the average grid emission factor for the geographic location where electricity is consumed.
VCM (Voluntary Carbon Market): The market through which organisations voluntarily purchase carbon credits to contribute to climate action, distinct from compliance carbon markets.
Compliance market: A regulated carbon market (e.g. UK ETS, EU ETS) where covered entities must hold sufficient allowances to cover their emissions or face penalties.
UK carbon credits: Carbon credits issued or verified for use within the UK voluntary carbon market, typically aligned with Gold Standard, Verra VCS or emerging UK-specific standards.
SBTi: A body that validates corporate greenhouse gas reduction targets to ensure they are consistent with the level of decarbonisation required to limit global warming to 1.5°C.
Carbon neutral: A state in which an organisation's measured emissions are balanced by an equivalent amount of carbon credits, without necessarily requiring deep emission reductions.
Net zero: A state in which an organisation has reduced emissions by at least 90% from its baseline and addressed residual emissions using permanent carbon removals.
SECR (Streamlined Energy and Carbon Reporting): A UK mandatory framework requiring qualifying companies to report energy use and greenhouse gas emissions in annual financial statements. Applies to quoted companies, large unquoted companies and LLPs meeting two of three thresholds: 250+ employees, £36M+ turnover, or £18M+ balance sheet total.
ESOS (Energy Savings Opportunity Scheme): A UK mandatory energy assessment scheme requiring large organisations to conduct comprehensive energy audits every four years.
Baseline year: The reference year against which an organisation measures its emissions reduction progress, typically the earliest year for which reliable data is available.
Carbon insetting: Investing in emissions reduction or removal projects within an organisation's own value chain, rather than purchasing external credits.
Paris Agreement: The 2015 international treaty under which 196 parties committed to limiting global warming to well below 2°C, with efforts to limit it to 1.5°C above pre-industrial levels.
BVCM (Beyond Value Chain Mitigation): The framework, endorsed by the VCMI and SBTi, under which companies fund verified climate action outside their own value chain as a contribution, separate from and in addition to their own emission reduction targets.
What To Do Next
Understanding and managing Scope 1, 2 and 3 emissions is the starting point for any credible decarbonisation strategy. The regulatory direction is clear globally: full emissions disclosure, including Scope 3, is becoming the expectation rather than the exception. Carbon markets, RECs and nature-based solutions can reduce and address your footprint, but they must be deployed strategically, backed by high-integrity standards and framed as climate contributions rather than a licence to keep emitting.
At Thallo, we work with businesses across the world to measure their full carbon footprint, source and buy carbon credits that meet the highest verification standards, procure high-quality RECs and build science-aligned net zero roadmaps. Whether you are starting from scratch or refining an existing strategy, our team of experienced sustainability consultants and certified energy assessors is here to help.
Ready to take the next step? Book a free emissions scoping call – no obligation, just practical expert advice.
Author: Joe Hargreaves, Thallo Sustainability Team. Certified energy assessors and sustainability consultants with 10+ years' experience advising organisations globally on GHG Protocol compliance, carbon market strategy and net zero roadmaps. Last reviewed: March 2026. Sources: GHG Protocol, DEFRA, IPCC, SBTi, CSRD (European Commission), UK SRS (DBT, February 2026).