When we talk about climate change, we often hear about “emissions.” In this context, emissions usually refer to greenhouse gas (GHG) emissions. These gases trap heat in the atmosphere and contribute to global warming.
To help track and understand where GHG emissions come from, they are often categorized into different “scopes”: Scope 1, Scope 2, and Scope 3. This helps companies and organizations see which emissions they are directly responsible for and which are linked to their activities in a less direct way. It also helps prevent multiple companies from counting the same emissions in the same scope.
What are Scope 1 emissions?
Scope 1 emissions are defined as direct greenhouse gas emissions. This means these emissions come from sources that are owned or controlled by the company or organization. Because these emissions come from sources directly under an organization’s control, addressing Scope 1 can be a good place to start when trying to reduce your climate impact.
Examples of Scope 1 Emissions
Scope 1 emissions come from the direct burning of fuels or other processes happening within the organization’s control. Here are some common examples:
- Burning fuels in owned or controlled equipment: This includes things like boilers, furnaces, or other equipment used for heating or processes within a building or facility.
- Emissions from a company’s own vehicles: This covers fuel used by the organization’s fleet of cars, trucks, or other vehicles.
- Emissions from chemical production or industrial processes: These are emissions that happen directly from manufacturing or other physical or chemical activities on-site using owned or controlled equipment.
- Fugitive emissions: This includes unintentional leaks or gradual releases of gases from sources like refrigeration systems, air conditioning, or industrial gases.
What are Scope 2 Emissions?
Scope 2 accounts for indirect greenhouse gas emissions. Specifically, these emissions are associated with the generation of purchased electricity, steam, heat, or cooling that a company consumes.
Even though the physical emissions from generating this energy occur at the facility where the electricity, steam, heat, or cooling is produced, they are included in the consuming organization’s GHG inventory because they result directly from that organization’s energy use.
Examples of Scope 2 Emissions
The main examples of Scope 2 emissions are:
- Emissions from purchased electricity. This includes any electricity that is bought or otherwise brought into the company’s organisational boundary.
- Emissions from purchased steam, heat, or cooling.
Understanding and reporting on Scope 1 and Scope 2 emissions is considered a minimum requirement for companies.
What are Scope 3 Emissions?
Scope 3 is a category for all other indirect emissions. These emissions are a consequence of the activities of the company, but they occur from sources that are not owned or controlled by the company.
Scope 3 emissions often represent the largest portion of a company’s carbon footprint because they cover emissions throughout the entire value chain.
Examples of Scope 3 Emissions
Scope 3 emissions cover a wide range of activities that happen outside of a company’s direct control but are linked to its operations. Some examples include:
- Extraction and production of purchased materials.
- Transportation of goods (both upstream from suppliers and downstream to customers).
- Use of products and services sold by the company.
- Business travel.
- Employee commuting.
- End-of-life treatment of sold products.
Click here to learn about the guidelines for India’s Offset Mechanism