Scope 1, 2 & 3 carbon emissions

Including scope 1, 2 & 3 in your carbon accounting ensures reporting completeness.

Greenhouse gas emissions are classified into three scopes.
Scope 1 and 2 are always obligatory to report, whereas scope 3 is optional. Additionally, the three scopes are considered as either direct or indirect.

• Direct emissions (scope 1), covers emissions that a company generates while performing business activities. In general, these are emissions that occur from your owned and controlled assets. These emissions could come from driving your vehicle or burning fuel.

• Indirect emissions (scope 2 & 3), covers emissions that are generated on behalf of your company. Scope 2 emissions include emissions from your purchased energy, whereas scope 3 includes indirect emissions in your value chain.

The leading international standard that introduces this terminology for measuring emissions is called the Green House Gas Protocol. Through this standard, organizations and institutions worldwide can effectively calculate and report greenhouse gas emissions in a unified way. Following this reporting framework is critical to promote transparency and comparability in the sustainability reporting space.

Scope 1, 2 & 3 value chain visualization

Scope 1

Scope 1 emissions are classified as direct emissions that a company generates from company-owned and controlled resources. Activities that can contribute to scope 1 emissions can include:

• Generation of electricity, heat, or steam on-site. 

• Manufacture materials and products.

• Transportation using vehicles owned or controlled by the company.

The share of emissions originating from scope 1 usually depends heavily on the type of industry that the company operates in.

Scope 2

Scope 2 emissions are classified as indirect emissions that are generated by the production of purchased energy. Activities that can contribute to scope 2 emissions can include:

• Purchased electricity

• Purchased heating

• Purchased cooling

In that sense, all emissions in scope 2 come using a utility provider. Scope 2 emissions are essential for all companies but the actual share of emissions varies heavily by the industry type and sustainability strategy. Many companies choose to buy ‘CO2 neutral’ electricity through Renewal Energy Certificates (RECs).

Scope 3

Scope 3 emissions are also divided into upstream and downstream emissions. Upstream emissions refer to the supply chain and therefore originate from a company's suppliers. Downstream emissions refer to the emissions that occur after a product or service has left the door of a company.

Activities that can contribute to scope 3 emissions can include:

• Production and transportation of purchased goods and materials from a supplier.

• Disposal of waste generated in the operation of a company.

• Employees traveling on behalf of a company

• Use and disposal of a product sold by a company.

Some of the most visionary and best-performing companies in the world are already committed to the Net-Zero journey.

Why not follow their lead?

Reach out to us to get a hold of your scope 1, 2, and 3 carbon footprint. We have the expertise and tools to set the right path for your company's Net-Zero journey.