What you need to know about Scope 1, 2 and 3 emissions

Date Posted:Wed, 26th Jun 2024

You may have heard of Scope 1, 2 and 3 emissions, but not be exactly clear on what they are and why they are important to track. In a nutshell, they help categorise the various types of carbon emissions generated by an organisation through its operations and value chain.

Scope 1 Emissions: These are direct emissions generated by a company from sources it directly owns or controls. Examples include emissions from company-owned vehicles, on-site fuel combustion, and industrial processes within the company’s facilities.

Scope 2 Emissions: The indirect emissions resulting from the energy bought by the company. This includes emissions from electricity, heat, or steam acquired from external providers. Although the company does not directly produce these emissions, they are still linked to its energy consumption.

Scope 3 Emissions: These are other indirect emissions related to a company’s activities but arise from sources not owned or controlled by the company. Scope 3 emissions cover the entire value chain, including the supply chain, product lifecycle, transportation, and disposal of products. Examples include emissions from suppliers, customer use of products, and business travel. Scope 3 often represents the largest portion of a company’s overall emissions impact.

Scopes 1, 2, and 3 are essentially a valuable tool to understand and manage your business’ greenhouse gas emissions comprehensively.

Fully committing to reach net zero will involve tackling your Scope 3 emissions, which are trickier to track.

“Definitions for what constitutes net zero ambition can be slippery - but businesses looking to adopt best practice will commit to tackling Scope 3 emissions as part of their plans. Mapping your emissions footprint by scale, and how much control you have over the source will be a good way to start addressing them. As well as making the emissions hotspots within easy reach your first ports of call.” (Deloitte)

Are you tracking your Scope 1,2, and 3 emissions?

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