Understanding Scope 1, 2, and 3 Emissions
Scope 1, 2, and 3 emissions are used to categorise the greenhouse gas emissions of a business or organisation. These emissions are classified based on their direct or indirect source and their impact on the environment.Here is a more detailed explanation of each scope:
- Scope 1 emissions: These are direct GHG emissions that result from sources that are owned or controlled by the company. Examples of scope 1 emissions include emissions from combustion of fossil fuels in boilers, furnaces, and vehicles, and emissions from chemical reactions in manufacturing processes. Essentially, any emissions that occur within the company's boundaries fall under scope 1.
- Scope 2 emissions: These are indirect GHG emissions that result from the consumption of purchased electricity, heat, or steam. This scope includes the emissions from the production of the energy that is purchased and used by the company. For example, when a company buys electricity from a utility company that generates electricity from coal-fired power plants, the emissions from the power plants are included in scope 2.
- Scope 3 emissions: These are indirect GHG emissions that are not directly controlled by the company but result from the company's activities. This includes emissions from the company's supply chain, transportation, distribution, use of products, and disposal of waste. Scope 3 emissions can be significant, and it requires cooperation with suppliers, customers, and other stakeholders to measure and reduce these emissions.
In summary, scope 1 emissions are direct emissions that occur within the company's boundaries, scope 2 emissions are indirect emissions that result from purchased energy, and scope 3 emissions are indirect emissions that occur outside of the company's boundaries but are influenced by the company's activities. It is important for businesses to measure and manage their emissions in all three scopes to reduce their environmental impact and contribute to a more sustainable future.