Greenhouse Gas Emissions
Greenhouse Gas Emissions: A Guide for DSL Borrowers
At DSL Business Finance, we are committed to supporting our clients as they grow responsibly and sustainably. As part of the Investment Fund for Scotland (IFS), we encourage businesses to assess and report their greenhouse gas (GHG) emissions.
This page is designed to help you understand your emissions and provides practical tools and links to calculate them – particularly Scope 1, 2 and 3 emissions as outlined by the Greenhouse Gas Protocol.
1. Understanding Your Emissions
GHG emissions are categorised into three key groups:
Scope 1 – Direct Emissions
Emissions from sources owned or controlled by your business, such as:
- Fuel used in company-owned vehicles
- Heating from boilers
- Emissions from any manufacturing or onsite operations
Scope 2 – Indirect Emissions (from energy)
Emissions from the generation of electricity, heating, or cooling purchased by your business.
Scope 3 – Indirect Emissions (value chain)
All other indirect emissions not included in Scope 2. These occur in your value chain, such as:
- Business travel
- Employee commuting
- Purchased goods and services
- Waste disposal
- Use of sold products
- Financial investments (for lenders or investors)
Scope 3 reporting is encouraged for businesses that are more mature or committed to sustainability. If you’re just starting out, begin with Scope 1 and 2.
2. Tools to Help You Calculate Emissions
You don’t need to be an expert – many resources are freely available to support small businesses:
Free Carbon Calculators
You may use these online tools to estimate your carbon footprint:
Use Your Accounting Software
Some accounting platforms have built-in carbon tracking:
- Sage, Xero, QuickBooks, and others offer emissions tools linked to your financial activity.
UK Government Emission Factors
Convert energy and fuel use into CO2e (carbon dioxide equivalent) using official factors:
3. How to Report Your Data
When reporting to DSL, please consider:
- Scope 1 and 2 emissions are required annually
- Scope 3 emissions are encouraged where feasible
- Include the source of your data:
- Self-calculated
- Verified by an auditor
- Estimated using spend or output-based methods
- You will be asked to provide:
- Total emissions in tonnes of CO₂e
- Source of the data
- Whether calculations align with the Greenhouse Gas Protocol
- If you’re unsure how to proceed, please contact your Loan Officer for guidance.
4. Additional Resources
5. We're Here to Help
If you have any questions about calculating your emissions or completing your ESG reporting requirements for IFS, DSL is here to support you. Please ask your DSL contact and they will be happy to help you.