What are gross GHG emissions?
Gross GHG emissions are the greenhouse gases generated by the companies, sites and activities covered by your calculation during a stated period, before removals, carbon credits or allowances are deducted. IFRS S2 paragraph 29(a)(i) requires in-scope entities to disclose separate absolute gross amounts for direct emissions (Scope 1), purchased-energy emissions (Scope 2) and other value-chain emissions (Scope 3), in metric tonnes of carbon dioxide equivalent (CO2e). Absolute means a mass total, not an intensity ratio.
For ESRS reporting, the standards currently in force require gross Scope 1, Scope 2, Scope 3 and total GHG emissions under E1-6 paragraph 44. They exclude removals, carbon credits and GHG allowances from the scope calculations.
The European Commission adopted revised ESRS on 3 July 2026, but marked them as not yet in force on 19 August 2026. The revision moves this disclosure to E1-8 paragraph 30(a) and keeps the same gross basis in AR 20(d). Confirm which version applies to your reporting year.
Why do gross GHG emissions matter to you?
An investor reporting team, parent company, customer or auditor may ask for the number. AASB S2 paragraph 29(a)(i), for example, asks covered Australian reporters for absolute gross Scope 1, Scope 2 and Scope 3 emissions in metric tonnes CO2e. The request may also ask for the inventory boundary, reporting period, method, emission factors and Scope 3 categories included.
If you subtract credits or removals, you answer a net-emissions question instead. The reviewer cannot reconcile that figure to your source activities or compare it with another company’s gross total. Keep credits, removals and avoided-emissions claims in separate records.
How are gross GHG emissions calculated?
Set the entities, sites and reporting period first. For each source, multiply activity data by a matching emission factor: litres of fuel x kg CO2e/litre, or kWh of electricity x kg CO2e/kWh. Convert kilograms to metric tonnes once, then add the inventory lines into separate Scope 1, Scope 2 and Scope 3 totals. Record the factor name, unit, geography, year and publisher beside every line.
If you report both location-based and market-based Scope 2, calculate two gross totals using one Scope 2 result in each. Never add both Scope 2 methods together. A CO2-only factor produces a CO2 subtotal, not a complete CO2e figure for all greenhouse gases.
What mistakes should you avoid?
- Deducting carbon credits, removals or GHG allowances from a field labelled gross.
- Adding location-based and market-based Scope 2 into the same company total.
- Omitting a relevant Scope 3 category without naming and explaining the exclusion.
- Calling a CO2-only estimate CO2e when methane, nitrous oxide or refrigerant gases are missing.
Are gross GHG emissions the same as net GHG emissions?
No. Gross is the emissions generated before deductions. Net is a separate figure after the stated removals or offsetting treatment. Send the gross scopes first, then show any removals or credits separately with their units and reporting period.
Does gross Scope 3 mean all 15 categories?
You must review all 15 GHG Protocol categories, but the reported set depends on the rule. IFRS S2 paragraph B32 requires the relevant categories and disclosure of those included. Revised ESRS E1-8 paragraph 30(a)(iii) asks for each significant category. Name every exclusion and the reason.
What should you send with a gross GHG emissions total?
Send a table with the reporting period, boundary, Scope 1, the Scope 2 method or methods required by the request, Scope 3 by category, units and exclusions. Attach the methodology note, activity-data files, factor ledger, calculations and reviewer sign-off. Put removals, credits and net claims in a separate table.