Scope 1, 2, and 3 GHG (Greenhouse Gas) emissions are categories defined by the Greenhouse Gas Protocol to help organizations measure and manage their emissions. They represent different sources of emissions that businesses contribute to, either directly or indirectly, and are essential in creating comprehensive strategies for carbon reduction. Here's an explanation of each:

Scope 1: Direct Emissions

Scope 1 emissions are the direct GHG emissions from sources that are owned or controlled by the company. These emissions are produced from activities that occur directly within an organization’s operational boundaries.

• Examples of Scope 1 emissions include:

  • Fuel combustion: Emissions from burning fuels on-site, such as in boilers, furnaces, or vehicles (e.g., company-owned trucks or cars).
  • Manufacturing processes: GHGs released from chemical processes or industrial operations.
  • Facility emissions: Such as emissions from on-site power generation.
  • Fugitive emissions: Leaks from refrigerants or other gases from equipment.

• Key GHGs in Scope 1 include carbon dioxide (CO₂), methane (CH₄), nitrous oxide (N₂O), and fluorinated gases.

Scope 2: Indirect Energy Emissions

Scope 2 emissions are the indirect GHG emissions resulting from the consumption of purchased electricity, steam, heat, or cooling. Although the emissions occur at the facilities where the energy is generated, they are attributed to the company that purchases and uses that energy.

• Examples of Scope 2 emissions include:

  • Electricity consumption: Emissions from electricity that a company buys to power its offices, manufacturing plants, or other facilities.
  • Purchased steam, heat, or cooling: Any energy that is bought and consumed but generated outside the organization’s direct control.

• These emissions depend on the carbon intensity of the grid or energy sources in the region where the energy is consumed. For instance, electricity from coal-powered plants would result in higher Scope 2 emissions than electricity from renewable sources.

Scope 3: Other Indirect Emissions

Scope 3 emissions are all other indirect GHG emissions that occur throughout the value chain, both upstream and downstream. These emissions arise from sources not owned or directly controlled by the company but are related to its operations.

Scope 3 is typically the largest and most challenging to measure because it involves the entire supply chain and customer activities.

• Examples of Scope 3 emissions include:
  • Upstream emissions:
    • Purchased goods and services: Emissions from the production of materials or products that the company buys.
    • Transportation and distribution: Emissions from logistics providers and the transportation of goods by third parties.
    • Waste disposal: Emissions from the waste generated in operations.
    • Employee commuting and business travel: Emissions from employees traveling to and from work or on business trips.
  • Downstream emissions:
    • Use of sold products: Emissions generated from the use of products sold by the company (e.g., fuel sold by oil companies).
    • End-of-life treatment of products: Emissions from the disposal or recycling of products once they are no longer used.
    • Customer transportation and distribution: Emissions related to getting products to end users or customers.

Scope 3 emissions are categorized into 15 reporting categories under the Greenhouse Gas Protocol to provide a more detailed structure for organizations tracking these indirect emissions.

Summary:

• Scope 1: Direct emissions from company-controlled sources (e.g., company vehicles, on-site fuel combustion).
• Scope 2: Indirect emissions from purchased energy (e.g., electricity, heat, steam).
• Scope 3: All other indirect emissions from activities up and down the company’s value chain (e.g., supply chain, product use, business travel).

Tracking all three scopes is crucial for companies looking to fully understand and reduce their carbon footprint, particularly as Scope 3 often accounts for the majority of total emissions in sectors like manufacturing, retail, and technology.