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Free Carbon Literacy Guide

Carbon Accounting
explained for India

Everything Indian businesses need to know — Scope 1, 2 & 3, GHG Protocol, SEBI BRSR, SBTi targets, emission factors, and carbon offsets — explained plainly, with Indian context.

GHG Protocol Scope 1 / 2 / 3 BRSR India Net Zero SBTi Targets Emission Factors Carbon Offsets Getting Started FAQ
Foundation

What is the GHG Protocol?

The Greenhouse Gas (GHG) Protocol is the world's most widely used accounting standard for measuring and managing greenhouse gas emissions. Developed jointly by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD), it provides the accounting framework used by 92% of Fortune 500 companies.

In India, the GHG Protocol underpins SEBI's BRSR framework, the SBTi corporate standard, CDP disclosures, and the ISSB IFRS S2 climate standard. When you measure emissions using Green Curve's calculator, you are following GHG Protocol Corporate Standard methodology.

Why it matters for Indian companies SEBI's BRSR (Business Responsibility and Sustainability Reporting) framework explicitly requires Scope 1 and Scope 2 disclosures using GHG Protocol methodology for all listed companies. BRSR Core (top 150 companies) additionally requires Scope 3 disclosures with third-party assurance.

The Protocol defines three scopes of emissions — direct, indirect from purchased energy, and value chain — and specifies how to calculate, verify, and report each. This scope structure is now embedded in every major global reporting framework.

Core Concepts

Scope 1, 2 & 3 Explained

The GHG Protocol divides emissions into three scopes based on where they occur in your value chain. Understanding the difference is essential before you begin measuring.

1
Direct Emissions
Emissions from sources owned or controlled by your company.
Indian examples Diesel / furnace oil in boilers, DG sets, coal in kilns, petrol/diesel in company vehicles, LPG in canteen, refrigerant leakage from ACs, SF6 in switchgear.
2
Purchased Energy
Indirect emissions from electricity, steam, heat or cooling you buy.
Indian examples Grid electricity from DISCOM, purchased steam from a power plant, chilled water from a district cooling utility. India's average grid factor: 0.71 tCO₂/MWh (CEA 2024-25).
3
Value Chain
All other indirect emissions — 15 GHG Protocol categories upstream and downstream.
Indian examples Raw material extraction (Cat 1), freight by road/rail (Cat 4), employee commute (Cat 7), business flights (Cat 6), waste treatment at CETP (Cat 5), use of sold products by customers (Cat 11).
The Scope 3 problem For most Indian manufacturers, Scope 3 represents 70–85% of total emissions — but it is the hardest to measure. If you don't have supplier activity data, use the spend-based estimation method with DEFRA EEIO factors — available directly in the Green Curve GHG Calculator.

Location-based vs market-based (Scope 2): The location-based method uses the average grid emission factor for your state (CEA CO₂ Baseline Database, updated annually by the Ministry of Power). The market-based method uses the emission factor of your specific electricity supplier — relevant if you buy renewable energy certificates (RECs) or have a green power purchase agreement.

Scope BRSR required? Typical % of total Difficulty to measure
Scope 1Yes — mandatory for all listed co.5–40%Low — use utility/fuel invoices
Scope 2Yes — mandatory for all listed co.10–50%Low — use DISCOM bills + CEA factor
Scope 3BRSR Core only (top 150)40–85%High — requires supplier data or spend-based
India Regulation

SEBI BRSR — India's Mandatory ESG Framework

The Business Responsibility and Sustainability Report (BRSR) is mandatory for all companies listed in the top 1,000 by market capitalisation on BSE/NSE, effective from FY 2022-23. It is filed as part of the Annual Report.

The BRSR is structured across 9 National Guidelines principles. Principle 6 covers the environment — and requires GHG disclosures including Scope 1, Scope 2, emission intensity, energy consumption, and targets.

BRSR disclosure Scope Mandatory? Notes
Scope 1 (tCO₂e)P6 — EnvironmentYesFor current + prior FY
Scope 2 (tCO₂e)P6 — EnvironmentYesLocation-based method
Scope 3 (tCO₂e)P6 — EnvironmentBRSR Core onlyTop 150 companies from FY2024
Intensity per ₹ turnoverP6YestCO₂e per crore revenue
Intensity per employeeP6YesTotal S1+S2+S3 / headcount
Reduction targetsP6VoluntaryRequired for BRSR Core
Energy consumptionP6YesRenewable vs non-renewable split
BRSR Core From FY 2023-24, the top 150 listed companies (by market cap) must file a BRSR Core with enhanced disclosures and mandatory third-party assurance. This includes Scope 3 GHG disclosures and a double materiality assessment. The threshold expands to top 250 companies from FY 2024-25.

The Green Curve BRSR Report Generator helps you fill all nine principles using AI assistance, benchmarked against 1,227 listed companies from SEBI's own XBRL filings.

Targets

Net Zero vs Carbon Neutral — what's the difference?

These terms are often used interchangeably but have distinct meanings. Confusing them is one of the most common causes of greenwashing claims.

Net Zero Net zero requires a company to cut absolute emissions by at least 90% across Scopes 1, 2 and 3 compared to a base year, and then balance the remaining ≤10% residuals with permanent carbon removal (not cheap offsets). This is the SBTi Corporate Net-Zero Standard definition.
Carbon Neutral Carbon neutral means balancing your emissions with carbon offsets — but without a required reduction target. A company can claim carbon neutrality while still emitting the same as before, simply by purchasing offset certificates. This is weaker and increasingly criticised as insufficient by investors and regulators.

India's net zero commitment: India committed to net zero by 2070 at COP26. Listed companies — especially those in the NIFTY 50 and BSE 500 — face growing investor pressure to align with 1.5°C pathways well ahead of this national deadline.

The Green Curve Net Zero Pathway Modeler (inside the GHG Calculator) automatically shows your required annual reduction trajectory under SBTi's 1.5°C pathway — which requires a 4.2% absolute reduction per year from your baseline.

Targets

Science-Based Targets (SBTi)

The Science Based Targets initiative (SBTi) is a body that validates corporate climate targets to ensure they are aligned with the latest climate science. A company with SBTi-approved targets has committed to emission reductions consistent with limiting global warming to 1.5°C.

Target typePathwayAnnual reductionTimeline
Near-term1.5°C4.2% absolute / year5–10 years (typically 2030)
Near-termWell-below 2°C2.5% absolute / year5–10 years
Long-term (Net Zero)1.5°C Corporate NZS90%+ reductionBy 2050
SME Near-term1.5°C simplified42% by 2030Vs 2020 base year
SBTi in India — growing fast As of 2025, over 80 Indian companies have submitted near-term SBTi targets — including Tata Steel, JSW Energy, Infosys, HCL, and Mahindra. Indian suppliers to global brands (Unilever, Apple, IKEA supply chains) are increasingly required to have SBTi-aligned targets to remain on approved vendor lists.

The Green Curve SBTi Target Generator in the calculator automatically computes your 2030 and 2050 targets once you add emission items. These numbers map directly to the BRSR target disclosure fields under Principle 6.

Data

Emission Factors — how calculations work

An emission factor converts an activity quantity into kg CO₂ equivalent. For example: burning 1 litre of diesel releases approximately 2.556 kg CO₂e. The factor accounts for CO₂, methane (CH₄) and nitrous oxide (N₂O) converted to CO₂ equivalent using Global Warming Potentials (GWPs) from the IPCC.

SourceCoverageUsed for
DEFRA 2024 3,000+ factors covering fuels, vehicles, travel, freight, materials, waste, water Most Scope 1, 2 and 3 categories globally — default in Green Curve calculator
CEA CO₂ Baseline V21.0 State-wise Indian grid emission factors (tCO₂/MWh), updated Nov 2025 for FY24-25 Scope 2 electricity in India — use for accurate BRSR filing
IPCC AR6 Global warming potentials (CH₄ = 29.8, N₂O = 273 over 100-year horizon) Converting non-CO₂ gases into CO₂e
DEFRA EEIO Spend-based Spend intensity factors by procurement category (tCO₂e per ₹ spend) Scope 3 Category 1/4/6 estimation when activity data is unavailable
IPCC Tier 2 (India) Country-specific combustion emission factors for Indian coal, biomass Coal combustion in Indian power plants and industrial boilers

All-India average grid factor (FY 2024-25): 0.7117 tCO₂/MWh (CEA CO₂ Baseline Database V21.0, November 2025). State-wise factors range from 0.043 (Himachal Pradesh — mostly hydro) to 0.918 (Chhattisgarh — coal-heavy). Always use the state-specific factor for more accurate Scope 2 disclosures.

Reduction

Carbon Offsets — last resort, not a strategy

A carbon offset represents the verified removal or avoidance of one tonne of CO₂ equivalent from the atmosphere. Companies purchase offsets to compensate for residual emissions they cannot yet eliminate.

The hierarchy — reduce first The GHG Protocol, SBTi, and all credible frameworks follow a clear hierarchy: (1) Reduce — cut your own emissions first. (2) Replace — switch to low-carbon alternatives (renewables, EVs, rail freight). (3) Remove — only then offset residuals you genuinely cannot eliminate. Using offsets to delay reduction is considered greenwashing.

India-specific offset options:

  • Gold Standard India: Cookstoves, solar home systems, biogas digesters, forestry projects. ICROA-endorsed, used by CDP-reporting companies.
  • Verra VCS India: REDD+ (avoiding deforestation), renewables, sustainable agriculture. The world's largest voluntary carbon standard.
  • India Carbon Credit Trading Scheme (CCTS): Domestic market under the BEE Energy Conservation Act. Mandatory for designated industries (PAT scheme); voluntary for others. Compliance with PAT credits counts toward Scope 1 reduction.

Always verify offset quality independently. Key questions: Is it additional? Is it permanent? Is it verified by an accredited third party? Does it avoid double-counting?

Action

Building your first GHG Inventory — step by step

Starting from zero? Here's how most Indian businesses approach their first GHG inventory, following the GHG Protocol Corporate Standard.

  • 1
    Set your organisational boundary Decide which entities are "in scope." Most Indian companies use the operational control approach — include all facilities and vehicles over which you have operational control, even if you don't own them.
  • 2
    Choose your base year Typically the first year you have reliable data — usually the year the BRSR was first filed. FY 2021-22 is a common base year for BSE 500 companies.
  • 3
    Collect Scope 1 data Fuel purchase invoices (diesel, LPG, furnace oil, coal, natural gas), DG set log books, vehicle fuel logs. Convert using DEFRA factors in the Green Curve calculator.
  • 4
    Collect Scope 2 data Monthly DISCOM electricity bills (kWh, not rupees). Use the CEA state-specific factor for your manufacturing location. If you have solar, subtract that from grid consumption.
  • 5
    Estimate Scope 3 (start simple) Use the Spend-based Scope 3 Estimator in Green Curve for a quick indicative estimate. For BRSR Core, you'll need activity-based data for Category 1 (purchased goods) and Category 11 (sold products use-phase).
  • 6
    Calculate intensity metrics Divide total emissions (S1+S2+S3) by revenue in ₹ Crore and by number of employees. These are the two intensity metrics required by BRSR Principle 6.
  • 7
    Set targets and file Use the SBTi Target Generator in Green Curve to calculate your 2030 and 2050 targets. Export to CSV for BRSR filing using the "Export for BRSR" button.
FAQ

Frequently asked questions

Is this calculator BRSR-compliant?
The Green Curve GHG Calculator uses DEFRA 2024 and CEA CO₂ Baseline V21.0 emission factors, following GHG Protocol Corporate Standard methodology — which is what BRSR requires. The BRSR export button generates a draft CSV pre-formatted for Principle 6 disclosures. You should verify all data against audited financials before filing, as SEBI requires assurance for BRSR Core companies.
My company is an SME, not listed. Do I still need to report?
BRSR is currently mandatory only for the top 1,000 listed companies. However, if you are a supplier to a listed company — particularly those in BRSR Core — you will increasingly be asked to provide your Scope 3 Category 1 emissions data (purchased goods). Global brands (Unilever, IKEA, Apple) already require Scope 3 data from Indian tier-1 suppliers. Starting measurement now puts you ahead.
What's the difference between CO₂ and CO₂e?
CO₂ is pure carbon dioxide. CO₂e (equivalent) is a universal unit that converts all greenhouse gases into their CO₂ warming potential using Global Warming Potentials (GWPs) from IPCC AR6: methane (CH₄) = 29.8 × CO₂ over 100 years; nitrous oxide (N₂O) = 273 × CO₂. All GHG Protocol and BRSR reporting uses CO₂e. The Green Curve calculator reports in metric tonnes CO₂e (tCO₂e).
We have rooftop solar — how do we account for it?
Under the location-based Scope 2 method (required for BRSR), you subtract your on-site solar generation from total electricity consumption and apply the grid factor only to net grid purchases. Under the market-based method, if you hold I-RECs (renewable energy certificates) matching your solar output, you can claim zero Scope 2 for that portion. BRSR requires both location-based and market-based figures to be reported.
How accurate is spend-based Scope 3 estimation?
Spend-based estimation uses DEFRA EEIO (Environmentally Extended Input-Output) factors — average emission intensity per rupee of spend by category. Accuracy is typically ±50% at the total level. It is accepted for initial screening and BRSR voluntarily, but for BRSR Core assurance you will need activity-based data for material categories. The Green Curve Spend-based Estimator is ideal for SMEs or for categories where activity data is hard to collect.
What is India's CEA grid emission factor and where does it come from?
The Central Electricity Authority (CEA) publishes the CO₂ Baseline Database for the Indian Power Sector annually. The latest version (V21.0, November 2025) covers FY 2024-25 and provides state-wise and all-India average grid emission factors in tCO₂/MWh. The all-India average is 0.7117 tCO₂/MWh. State-specific factors range from 0.043 (Himachal Pradesh) to 0.918 (Chhattisgarh). BRSR requires using these factors for Scope 2 reporting in India.

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