Understanding Scope 1, 2, and 3 Carbon Emissions

In the pursuit of reducing greenhouse gas emissions, various businesses are striving to gauge and mitigate their environmental impact. Central to this evaluation is the utilisation of ‘Scopes 1, 2, and 3 emissions’ terminologies, but what do these classifications truly signify?

The Evaluation of Emissions

Amidst the endeavor to achieve lower emissions, companies adopt a threefold approach to analyse and comprehend their greenhouse gas emissions, categorising them into different ‘scopes’.

The Three Scopes Explained

The rationale behind these three distinct scopes of emissions is rooted in the necessity to identify and address the sources of emissions comprehensively. They serve as a mechanism to differentiate the diverse emissions arising from a company’s internal operations as well as its broader ‘value chain’, encompassing suppliers and customers.

Origins of ‘Scopes’

Termed as ‘scopes’, these classifications derive their name from the Greenhouse Gas Protocol, a globally recognised standard for greenhouse gas accounting. According to the Protocol, assembling a comprehensive greenhouse gas inventory, incorporating Scope 1, Scope 2, and Scope 3 emissions, allows companies to grasp their entire value chain emissions and focus on optimising reduction strategies.

Understanding Each Scope

Scope 1 emissions encapsulate the direct emissions directly owned or controlled by an organisation, such as fuel combustion within the company’s vehicle fleet (except electrically-powered vehicles).

Scope 2 emissions, on the other hand, pertain to indirect emissions arising from the production of energy purchased and used by the company. For instance, the emissions associated with electricity generation for building usage fall into this category.

Scope 3 emissions encompass a broader spectrum, incorporating emissions that aren’t produced by the company itself or its controlled assets. These arise from activities along the company’s value chain, like the procurement, use, and disposal of products from suppliers. Scope 3 emissions encapsulate sources beyond the boundaries of Scopes 1 and 2.

Navigating Reduction Challenges

While reducing Scope 1 and 2 emissions may involve controllable factors like fleet emissions or energy sourcing, Scope 3 emissions present a greater challenge. Companies have limited control over these emissions, which often contribute significantly to the overall emissions footprint. Strategies to mitigate Scope 3 emissions typically involve collaboration with suppliers and customers to jointly address emission reduction solutions.

A General Business’s Carbon Emissions Analysis

A comprehensive analysis of Scope 1, 2, and 3 emissions reveals the primary sources contributing to a business’s environmental footprint, aligning with responsible environmental practices and sustainability initiatives.