Purpose
This article explains how Scope 1, Scope 2, and Scope 3 emissions are defined and calculated in Scaler for real estate portfolios, following an operational control approach aligned with the GHG Protocol and GRESB.
How Scaler approaches emissions accounting
Scaler focuses on operational emissions from real estate assets.
All emissions calculations are based on an operational control methodology, meaning emissions are classified according to who controls the activity, not who owns the asset.
In Scaler, operational control is explicitly defined through the selected Area type, which combines:
- The spatial scope (e.g. whole building, common area, tenant space)
- The control designation (landlord-controlled or tenant-controlled)
How Scaler reports emissions (CO₂e)
Scaler calculates greenhouse gas (GHG) emissions in CO₂e (carbon dioxide equivalent) across Scope 1, Scope 2, and Scope 3, in line with the GHG Protocol.
This means that all emission factors used in Scaler (for example, electricity, fuels, and district energy) account for multiple greenhouse gases, including CO₂, CH₄, N₂O, and other relevant gases.
These gases are converted into a single CO₂e value using their global warming potentials (GWPs), allowing emissions from different sources and gases to be aggregated and compared consistently.
Scope definitions in Scaler
As of 1 January 2026
Methodology note — how this worked before 1 January
Prior to 1 January, tenant-related emissions were more broadly associated with “tenant spaces.”
Following updates to the GHG Protocol and GRESB guidance, Scaler now classifies emissions based strictly on operational control, as explicitly defined in the selected Area type.
This change improves consistency, auditability, and alignment with industry standards.
Scope 1 – Direct emissions under landlord control
Scope 1 includes emissions that:
- Occur on site
- Are directly controlled by the landlord
In Scaler, this typically includes:
- On-site fuel combustion (e.g. gas, oil) under landlord control
- Landlord-controlled installations using refrigerants (F-gases)
Scope 2 – Indirect energy emissions under landlord control
Scope 2 includes emissions that:
- Occur off site
- Relate to energy used by the asset
- Are under landlord control
In Scaler, this includes:
- Electricity consumption
- District heating
- District cooling
Where applicable, Scope 2 emissions may be calculated using:
- Location-based emission factors
- Market-based emission factors
(These are configured separately at portfolio level.)
Scope 3 – Tenant-controlled operational emissions
In Scaler’s real estate analytics, Scope 3 refers specifically to:
Operational emissions occurring on site but under tenant control
This includes:
- Tenant-controlled energy use
- Tenant-controlled fuels
- Tenant-controlled F-gas installations
Control is determined explicitly by the selected Area type, which already specifies whether the activity is landlord-controlled or tenant-controlled.
How area type and subcategory map to scopes
Scopes in Scaler are assigned based on the control designation embedded in the selected area type, combined with the resource subcategory.
In simplified terms:
Landlord-controlled area types
- Energy, fuels, or installations → Scope 1 or Scope 2
- Waste generated in landlord-controlled areas → Scope 3, Category 5
Tenant-controlled area types
- Energy and fuels → Scope 3, Category 3
- Tenant-controlled installations (F-gases) → Scope 3
This logic applies consistently across:
- Analytics dashboards
- Portfolio and asset views
- Company-level aggregation
Scope 1
Energy Subcategory
- Natural gas
- Coal
- Fuel oil
- Kerosene
- Wood
- Coke
- Diesel
- Propane
- On site electricity > Combined heat and power (landlord)
F-gas installations
Area type
- Whole Building - Landlord Controlled
- Shared Services (implicit landlord control)
- Common Area (implicit landlord control)
- Exterior Area - Landlord Controlled
- Tenant space - Landlord controlled
These combinations represent fuel and on-site generation directly controlled by the landlord and are therefore classified as Scope 1.
Scope 2
Energy Subcategory:
- District Heating and Cooling
- District Steam
- District Hot Water
- District Chilled Water
- Heat Cold Storage
- Off Site Electricity
Area type :
- Whole Building - Landlord Controlled
- Shared Services (implicit landlord control)
- Common Area (implicit landlord control)
- Exterior Area - Landlord Controlled
- Tenant space - Landlord controlled
In these cases, the landlord is purchasing energy from the grid or a district system, so the emissions are classified as Scope 2.
Scope 3
Energy Subcategory:
- Natural gas
- Coal
- Fuel oil
- Kerosene
- Wood
- Coke
- Diesel
- Propane
- District heating and cooling
- District steam
- District hot water
- District chilled water
- Heat cold storage
- Off-site electricity
- On site electricity > Combined heat and power (tenant)
F-gas installations
Area type:
- Whole building - Tenant controlled
- Tenant space - Tenant controlled
- Exterior area - Tenant controlled
These combinations capture energy consumption where tenants have control, so the emissions are classified as Scope 3 for the landlord.
How Scaler fits into the broader Scope 3 definition
Under the GHG Protocol, Scope 3 emissions include all other indirect emissions (not included in Scope 2) that occur across the value chain of the reporting company, both upstream and downstream.
In commercial real estate, this can include a wide range of activities, such as tenant energy use, waste, business travel, purchased goods and services, and embodied carbon in construction materials.
Scaler does not calculate all Scope 3 categories. Instead, Scaler focuses on operational, real estate–related Scope 3 emissions where the required data can be collected and validated within the platform. These are primarily:
- Scope 3, Category 3: fuel- and energy-related activities (tenant-controlled operational emissions)
- Scope 3, Category 5: waste
Company-level aggregation in Scaler
At the company level, Scaler aggregates emissions calculated across all portfolios and assets.
Navigation path:
Data Collection Portal → Company → Performance → GHG emissions
You will see:
- Purple banners Aggregated Scope 1, Scope 2, and Scope 3 emissions calculated by Scaler based on data entered in the platform.
- White input fields above each banner Optional manual inputs that allow users to add emissions not covered by Scaler, such as:
- Assets/portfolios outside the platform
- Non–real estate emissions
For Scope 3 specifically:
- All 15 Scope 3 categories are displayed
- Scaler currently calculates:
- Category 3 (fuel- and energy-related activities)
- Category 5 (waste)
- Other Scope 3 categories can be added manually if required
What Scaler calculates (and what it does not)
Scaler calculates and aggregates emissions only where the required operational data exists in the platform.
Scaler does not:
- Automatically calculate full supply-chain Scope 3 emissions
- Connect to external Scope 3 data providers
- Estimate emissions where required inputs are missing
For example:
- Waste emissions will not calculate unless the relevant waste data fields are completed
- Tenant emissions only calculate where tenant-controlled data exists
Where to go next
- Configuring location-based emission factors
- Configuring market-based emission factors
- Scope 3 Category 3: fuel- and energy-related activities
- Waste emissions (Scope 3, Category 5)