The Protocol classifies emissions as Scope 1, 2 and 3 and contains rules for setting organisational boundaries, selecting emission factors and recalculating the base year. TSRS 2 requires emissions to be measured under this framework.
Related terms
Scope 1, 2 and 3 emissionsThe classification of greenhouse gas emissions by source into direct emissions (Scope 1), indirect emissions from purchased energy (Scope 2) and other indirect emissions in the value chain (Scope 3).Carbon footprintThe total greenhouse gas emissions caused by an organisation, product or activity, expressed in carbon dioxide equivalent (tCO₂e).TSRS 2The standard setting out the disclosure requirements for climate-related risks and opportunities.Carbon Border Adjustment Mechanism (CBAM)An EU regulation that puts a price on the embedded carbon emissions in the production of certain goods imported into the European Union.Climate-related risksThe potential effects on a company's financial position of physical risks arising from climate change and transition risks arising from the shift to a low-carbon economy.Double materialityAssessing sustainability matters both in terms of their effect on the company's financial position (financial materiality) and the company's impact on the environment and society (impact materiality).
Last updated: October 22, 2026 · This definition is for general information only.