Scope 1 and Scope 2 Emissions for Apparel Factories from Energy Records

A factory's energy records can support a sound greenhouse gas report. Keep a clear trail from each source record to the reported tonnes of emissions. A fuel bill alone does not show fuel burned. A power bill may cover dates outside the reporting year. A solar contract may transfer energy attributes. Someone else may then hold the renewable electricity claim.

An apparel factory must keep those distinctions clear. They form the basis of Scope 1 and Scope 2 reporting. First define which operations belong in the inventory. Then group each source and check its amount. Choose suitable factors and show the math. This guide explains the work through a made-up factory example. All example activity data and emission factors are invented for teaching. Do not use these factors in a real submission.

Define the reporting boundary before collecting totals

The GHG Protocol Corporate Standard provides a framework for corporate greenhouse gas inventories. Its organizational boundary can follow equity share or a control approach. A factory should use the approach adopted by its reporting company. Do not choose a new approach for each utility account. A lower total is not a valid reason to switch.

Write a short boundary statement. Name the legal entity and sites. State the report dates and consolidation approach. List any sites and assets needing a decision. Include leased buildings, warehouses, dormitories, vehicles, and shared utility plants. Record who approved each decision and why.

Who owns the meter does not settle every case. A landlord may pay a utility bill and recharge tenants. A separate company may own and operate a boiler inside the factory fence. Review the contracts alongside the chosen control approach. Both affect how these arrangements are treated.

Keep a boundary register. List the operation, responsible entity, and source of control. Add the accounting treatment and supporting document. Retain excluded operations in the register with an explanation. That helps answer buyer questions. It also helps when a lease or ownership changes.

Distinguish direct emissions from purchased energy

Scope 1 covers direct emissions within the chosen boundary. The sources are owned or controlled by the organization. Scope 2 covers generation emissions from purchased or acquired energy. The organization consumes that energy. This includes electricity, steam, heat, and cooling. These definitions come from the Corporate Standard and its Scope 2 update.

The table is a starting point, not a substitute for boundary analysis. The same boiler can have a different treatment if its ownership and control change.

Energy records alone cannot prove a complete Scope 1 report. Refrigerant losses, relevant process emissions and other direct sources need separate review. Label the output “energy-related emissions” until that review is complete. A correct fuel result can still sit inside an incomplete total.

Build one activity ledger with evidence links

Create one row per source, period and fuel or form of energy. Keep the original unit beside the converted unit. Include the source document, meter ID, dates, and quantity. Flag estimates and name the reviewer.

For fuel, add tank or store references. For grid energy, add import and export channels. For purchased steam, record whether the supplied quantity is mass or heat energy. To convert steam mass into delivered heat, check the thermal basis. Record the pressure, temperature, and condensate assumptions needed.

Give every row a stable record number. A reviewer should be able to trace the annual total to each month. From there, they should reach the meter reading or invoice. Avoid links that open only a staff member's private desktop folder.

Keep raw records unchanged. Put each change in a separate field. Control who can edit it and state the reason. If an invoice is replaced, keep both versions. Mark which one was used. Do not just overwrite a number. The reason for a change should not rely on an old email.

Reconcile fuel consumed rather than fuel purchased

For a simple storage system, a useful physical balance is:

Fuel used = opening stock + receipts − closing stock − documented transfers out.

This assumes all relevant flows are recorded. They must share a consistent quantity basis. Leaks, disposal, returns and transfers between tanks may require additional terms. Investigate a stock shortage. Do not assume all missing fuel was burned.

Suppose the example factory opens the year with 8,000 litres of diesel. It receives 112,000 litres and closes with 10,000 litres. It also transfers 5,000 litres to a separately reported site. Fuel assigned to the site is 105,000 litres. Using purchases alone would overstate this amount by 7,000 litres.

Reconcile tank totals with generator and vehicle issue records. If one tank feeds both, split measured use by equipment category. Count each issue once. Do not add it to both tank and generator totals.

ApparelDiary's generator fuel guide explains useful checks. It links litres, kWh, and operating load. Those checks can reveal a quantity that seems wrong. A generic efficiency ratio should not replace sound fuel records.

Select factors with the correct units and coverage

An emission factor connects an activity quantity with an emitted mass. Match the factor to the fuel and energy basis. Check its geography, year, and reporting method. A factor for litres cannot be multiplied directly by kilograms. A factor may use net calorific value. Do not silently pair it with data based on gross calorific value.

The IPCC stationary combustion guidance describes fuel and equipment types for national reports. Use it as a technical reference. Check that each category and default factor fits the company source being reported. The GHG Protocol stationary combustion guidance covers company estimates and records.

Keep a factor register. List the publisher, version, table, factor value, and unit. State which gases it covers and why it was chosen. Save the source file. A web link alone may later point to an updated factor.

The US EPA factor hub publishes public factors with version details. Its US electricity factors are not universal grid factors. Choose a national or regional source that fits the actual site. Check the required reporting scheme too.

Check physical units at the point of collection

Put the unit check beside the source record, before a total reaches the report. A gas invoice may show cubic metres. The emissions factor may use GJ. The conversion needs a suitable heating value. Use a consistent basis for the readings. Record whether the supplier has already corrected volume for pressure and temperature. Applying that correction twice creates an error. It can look like a real change in fuel use.

For liquid fuel, compare the basis of delivery and stock readings. A tank level is not a volume. Convert it with a suitable tank table. The tank's shape, tilt and unusable bottom volume can matter. If stock readings are weak, record that limit. Improve the measurement process. Do not force the balance to agree.

For grid energy, keep kW distinct from kWh. The first describes power; the second describes energy over time. A monthly peak demand reading cannot replace the month's energy use. Also distinguish MWh from kWh: one MWh equals 1,000 kWh. Every spreadsheet formula may run without an error. The report can still be wrong by a factor of 1,000.

These checks are useful for a small site with paper records. Write the original value and unit. On the same line, add the conversion, result, and conversion source. A second person can then check the logic without searching several worksheets.

Calculate combustion emissions without mixing gases

A factor may express all covered gases as carbon dioxide equivalent. In that case, use:

Emissions, tCO2e = activity quantity × factor, kgCO2e per activity unit ÷ 1,000.

Some factors cover each gas separately. Calculate carbon dioxide, methane, and nitrous oxide as separate amounts. Use the required global warming potential, or GWP. This converts each gas mass to CO2 equivalent. Then sum the results. Do not apply a GWP again to a factor already stated in CO2e.

The GHG Protocol GWP table provides values from different IPCC assessment reports. It also explains a methane distinction. Its AR6 guidance uses the non-fossil methane GWP for combustion. Combustion CO2 is already accounted for. Record the chosen assessment report and reporting rule. Do not pick values gas by gas to lower the emissions total.

For this example ledger, assume an approved combined diesel factor. Its value is 2.70 kgCO2e per litre. The calculation is 105,000 × 2.70 ÷ 1,000 = 283.5 tCO2e. This is a teaching factor. A real inventory needs the appropriate factor and its gas coverage.

For a second fuel, assume 20,000 GJ of natural gas. Use an example combined factor of 56.0 kgCO2e/GJ. The result is 1,120.0 tCO2e. The two combustion sources total 1,403.5 tCO2e.

Keep generated energy and energy use separate

Suppose the factory imports 2,400,000 kWh from the grid. Its own diesel generator produces another 300,000 kWh. Its emissions have already been worked out from fuel burned. Do not apply the grid factor to all 2,700,000 kWh. That would count the generator again, using the wrong method.

Use generator output to check the energy balance and how well it runs. Use its fuel for direct combustion emissions. Purchased electricity goes into the Scope 2 calculation. Show grid exports on their own. A net annual reading can hide them.

Assume a location-based grid factor of 0.60 kgCO2e/kWh for this example. Emissions from grid energy are:

2,400,000 × 0.60 ÷ 1,000 = 1,440.0 tCO2e.

The location-based method uses the relevant grid's emissions per unit of energy. The market-based method uses eligible contract data. Apply its required quality criteria and factor hierarchy. Check the 2015 Scope 2 Guidance. Where it requires dual reporting, calculate and disclose both results. Do not add them together. They are two views of the same purchased electricity.

Test contractual claims before using a market-based factor

For this example, assume eligible instruments cover 900,000 kWh. They have a zero direct generation factor. Assume all quality criteria have been satisfied. For the remaining 1,500,000 kWh, assume the residual mix factor is 0.70 kgCO2e/kWh. These are teaching assumptions, not a recommendation for a specific market.

The market-based result is 900,000 × 0 ÷ 1,000 + 1,500,000 × 0.70 ÷ 1,000 = 1,050.0 tCO2e. The location-based result remains 1,440.0 tCO2e. The accounting methods differ by 390.0 tCO2e. This does not prove the factory caused an equal physical reduction on the grid.

Keep a claim register. List the instrument, quantity, generation period, and eligible market. Add retirement or cancellation evidence and name the beneficiary. Check that no other site or reporting entity has used the quantity. A marketing brochure that says “green power” is not the full evidence trail.

For on-site solar, record who owns the system and uses its output. State who holds the energy attributes. Selling the attributes can affect the claim the factory may make. Buying an offset differs from buying an electricity attribute. It does not automatically reduce Scope 2 inventory emissions.

Treat purchased heat as a separate data problem

Purchased steam may occupy a small line on the bill. It can still be a large emissions source. Obtain the supplier's method and the energy delivered to the reporting site. Steam mass alone may not support a sound conversion to GJ. The thermal conditions matter too.

For a made-up extension, assume purchased steam supplies 4,000 GJ. Its recorded suitable factor is 70 kgCO2e/GJ. Emissions would be 280 tCO2e. The factory may instead own and control the boiler. Its fuel would normally be a direct source under the chosen boundary. Do not count purchased heat and its boiler fuel twice in the same site inventory.

Shared systems need a clear allocation rule. Ask whether measured deliveries match the supplier's total. Check how distribution losses are treated. Retain the answer with the factor. Use a documented allocation. Dividing supplier fuel use by a convenient estimate of your share is weak evidence.

Make the annual results readable

Return to the main example. Leave out the separate purchased steam case. Assume no other sources have yet been assessed. The provisional result is:

If combined totals are useful, show two separate figures. Scope 1 plus location-based Scope 2 is 2,843.5 tCO2e. Scope 1 plus market-based Scope 2 is 2,453.5 tCO2e. Clearly label both as provisional energy-related totals in this example.

Do not place one unlabeled “carbon total” on the dashboard. The reader needs the boundary, year, method and completeness status. ApparelDiary's KPI dashboard guide explains how to keep definitions visible. Place them beside the metrics used by management.

Resolve missing records and uncertain estimates

Keep an exception register. List missing bills, broken meters, and unresolved stock balances. Record the affected dates, likely magnitude, proposed estimate and approval. In the ledger, mark which amounts were measured, worked out, or estimated.

A month may be missing. Estimate it from suitable meter readings, supplier data, or an operating model. Select the method that fits the evidence. A shutdown or peak production month may differ greatly. A simple annual average can miss that change. Record the uncertainty. Replace the estimate when stronger evidence becomes available.

Test sensitivity where uncertainty could affect a decision. Suppose gas use is estimated at 20,000 GJ. A plausible range is 19,000–21,000 GJ. At the example factor of 56 kgCO2e/GJ, emissions range from 1,064 to 1,176 tCO2e. That range is a scenario check, not a statistical confidence interval. A better meter record may matter more than extra decimal places in the total.

Explain changes without confusing causes

Emissions can change from year to year for several reasons. Check energy use, fuel mix, grid factors, eligible instruments, and the business boundary. Separate those effects where practical. Lower market-based emissions with unchanged kWh can reflect procurement. Outsourcing a process may lower site emissions. It may shift them into the value chain rather than remove them.

An intensity ratio also needs a stable denominator. State whether output means accepted garments, kilograms processed or another measure. Product mix can change the emissions-per-piece figure. The ratio may then fail to give a fair operating comparison. Keep absolute emissions beside the ratio.

Use a documented base-year policy. Apply it to structural changes and material errors under the relevant inventory rules. The full Corporate Standard provides the accounting framework for consistent inventories over time. Explain any revised historic number. Keep a link to the version it replaces.

Keep biomass and offsets visible in separate records

A biomass fuel should not disappear from the energy ledger. Record the quantity and fuel type. Where relevant, keep evidence for its biogenic and fossil shares. Under the GHG Protocol combustion approach, report biogenic CO2 separately. Relevant methane and nitrous oxide emissions remain within the inventory treatment. Waste fuel may contain fossil carbon. Its name alone does not settle the accounting.

This also matters for mixed fuels. Keep data for each part of the fuel mix where possible. The mixture may need to be estimated. Keep the analysis or supplier evidence and explain its limit. Do not claim a mixed fuel is wholly renewable without evidence. That can distort energy and emissions reports.

Keep a separate register for offsets or credits the company buys. That register can support a separate claim under its own rules. It should not overwrite the gross emissions calculated from the factory's activities. Show managers what the factory emitted and changed in its work. Show what it bought from outside too. One adjusted figure can hide those actions. It makes the decisions harder to assess.

Use a controlled monthly close

Assign one owner to collect each source and another to review it. At the monthly close, check quantities and remove duplicates. Check units and log estimates. At the annual close, review boundaries and factor versions. Check instrument evidence and non-energy direct sources.

Use simple reasonableness tests. A generator with fuel use but no operating record needs investigation. A negative grid-energy amount needs review. It may show export, a meter reset, or an error. Monthly gas use may stay constant. Review it if production changed sharply.

Save the approved workbook with a version number. Keep an evidence index and change log. List open issues too. The GHG Protocol tools hub explains the range of tools. Companies often need more than one to cover their sources. A spreadsheet template may omit a source. Do not let that define the inventory boundary.

Work through a corrected electricity bill

Consider a separate hypothetical record check. The first December bill shows 100,000 kWh. The supplier marks it as an estimate. A later bill for the same dates shows 98,000 kWh from an actual meter read. The two bills are versions of one record, not two loads to add together.

Keep both files. Mark the first one as replaced and link it to the new bill. Check that the meter, dates, and units match. Then change the ledger quantity to 98,000 kWh and record why it changed.

Using the earlier illustrative factor of 0.60 kgCO2e/kWh, the correction lowers this month's result by 1.2 tCO2e. That is 2,000 × 0.60 / 1,000. It is a data correction, not an energy project saving. This separate example does not change the main factory totals above.

If the annual report is already approved, follow its change and correction rules. Do not edit a published total without a trace. Keep the former total, new total, reason, review date, and approval. The next reviewer should see one clear path from the old record to the new one.

The same logic applies when a fuel delivery is cancelled or moved to another site. Check what happened to the physical quantity before changing its scope or factor.

Track standards updates without treating proposals as rules

As of October 2026, GHG Protocol's Scope 2 revision remains under development. Its October 2026 market-based method update discusses possible approaches and unresolved requirements. Hourly matching and future transition dates may be proposed. Do not describe proposals as settled current obligations.

Record the standard edition used for each inventory. Before the next reporting cycle, check the official standard and reporting programme. Review relevant customer instructions too. Better records of time, place, and contracts help prepare for changes. Explain any change to an approved accounting method. An unexplained midyear change creates confusion.

Frequently asked questions

Can the factory report zero emissions because it buys renewable electricity?

Renewable electricity claims require evidence and the applicable accounting method. They do not erase direct fuel combustion, refrigerant losses or other sources. Report the relevant Scope 2 methods and keep the inventory boundary visible.

Should grid transmission losses be added to Scope 2 electricity consumption?

Do not automatically increase purchased consumption by an assumed loss percentage. Follow the scope and factor boundary in the applicable method. The EPA factor hub identifies grid losses for relevant Scope 3 calculations. If a factor already includes an item, do not add it again.

Is a monthly invoice enough evidence?

It may support quantity and dates. Check its coverage, meter ID, and unit too. Fuel invoices often need stock reconciliation. Power contract claims need more evidence. The records should answer the specific accounting question.

Does this inventory measure a garment's product footprint?

No. A site or company inventory differs from a product life cycle footprint. Their boundaries and allocation needs differ. Dividing site emissions by garment output gives a site intensity measure. It does not include all material production, transport, use or end-of-life impacts.

Build a result another person can reproduce

A sound emissions report needs a clear boundary and traceable ledger. Keep quantities separate from factors. Keep each gas distinct from its CO2 equivalent conversion. Separate physical electricity flows from contractual claims. Explain estimates and unfinished source reviews. Keep records that let another person reproduce the totals. The inventory can then guide action and support answers to buyers' questions.

References

GHG Protocol: Corporate Standard.

GHG Protocol: Corporate Standard, full revised document.

GHG Protocol: Scope 2 Guidance.

GHG Protocol: Stationary Combustion Guidance.

IPCC: 2006 Guidelines, Volume 2, Stationary Combustion.

GHG Protocol: Global Warming Potential Values, August 2024.

US EPA: GHG Emission Factors Hub.

GHG Protocol: Calculation Tools and Guidance.

GHG Protocol: Scope 2 Market-based Method Update, October 2026.