Scope 1 for CBAM and Socpe 1 for CSRD

Scope 1 emissions, in the context of both the Carbon Border Adjustment Mechanism (CBAM) and the Corporate Sustainability Reporting Directive (CSRD), refer to direct greenhouse gas (GHG) emissions from sources that are owned or controlled by the reporting organization. For CBAM, which is a policy of the European Union designed to adjust the prices of carbon-intensive products imported into the EU, Scope 1 emissions are critical for determining the carbon content of goods at the point of production. This is essential for calculating the carbon price that should be applied to imports to ensure they are not competitively advantaged over EU products subject to EU emissions trading system costs. In the context of the CSRD, which expands and strengthens the EU's non-financial reporting framework, requiring companies to disclose information on their sustainability practices, including their environmental impact, Scope 1 emissions data is a key part of environmental reporting. Companies are mandated to report on their direct emissions as part of their broader sustainability and environmental impact disclosures, helping stakeholders understand the company's direct contribution to climate change. Thus, while both CBAM and CSRD utilize the concept of Scope 1 emissions, the former focuses on adjusting the economic impact of carbon costs on imports, and the latter aims at enhancing transparency and accountability in corporate environmental reporting.