As action against climate change accelerates, businesses are being urged to monitor and decrease the amount of carbon they produce. This effort is organized by classifying all greenhouse gas (GHG) emissions as Scope 1, Scope 2, or Scope 3.
The Greenhouse Gas Protocol developed these categories to help companies point out the reasons for their emissions and come up with suitable green initiatives.
We will discuss about scope 1 2 3 emissions, what they are essential for, and how businesses can act to be more environmentally friendly.
Understanding the Guidelines of the Greenhouse Gas Protocol
It’s important to understand the background of this classification before proceeding to its scopes. Many companies, governments, and organizations rely on the Greenhouse Gas Protocol to help them track, assess, and control GHG emissions.
It sorts emissions into three groups depending on who or what is causing them and how much the entity can influence them.
Scope 1 Emissions: Sources Owned or Controlled by the Company
Scope 1 emissions are made by GHG sources from which a company operates. Below are some instances of Scope 1 emissions.
- How fuel is burned in the company’s vehicles for deliveries
- Producers make the parts right on the factory site.
- Any leaks that come from refrigerants or any other controlled appliance
- Heat produced in homes and offices through uses such as boilers, generators, or furnaces.
Why is Scope 1 so important?
Scope 1 emissions are easy for a company to identify and tackle, as these are activities it runs under its direct control.
Emissions related to Scope 1 may be reduced by changing outdated equipment, adopting cleaner fuels, or using energy better.
Scope 2 Emissions: Occur as a Result of Energy from a Third Party
Scope 2 emissions seem more secondary compared to the first one, which occur from primary sources. They include GHG emissions that occur when electricity, steam, heat, or cooling is purchased.
Types of Scope 2 emissions
Some examples have been provided for you below.
- Electricity used in office buildings, factories, and data centers.
- District heating or cooling from your local utility provider.
Why is Scope 2 significant?
Scope 2 emissions account for a large part of the emissions for companies that mainly work in offices or technology. Switching to renewable energy and increasing energy efficiency are the main ways to reduce Scope 2 emissions.
Scope 3 Emissions: Emissions from Suppliers and Customers in the Company’s Supply Chain
Emissions that occur throughout a company’s whole value chain, inside and outside the company, are known as Scope 3 emissions.
Different examples of Scope 3 emissions
You can see Scope 3 emissions highlighted by the following cases:
- Employees traveling for business while commuting to work.
- Debris and scraps made during operations.
- Items and services bought at a store.
- Transport and distribution are called ‘upstream’ and ‘downstream’ sectors.
- Final handling of goods after they are sold.
- Capital goods and investments are important tools for a nation’s economy.
Why is it the most challenging?
Scope 3 emissions make up to 90% of a company’s total environmental impact. They are very hard for corporations to monitor and influence because they are related to suppliers, customers, and various service providers.
Significance of working together in the supply chain
Getting Scope 3 emissions under control is only possible with the help of many industries, suppliers, and consumers.
They should check their supply chains, analyze each product’s life from start to finish, and motivate partners to choose more environmentally friendly methods.
Why Companies Need to Consider All Three Scopes
Consumers, investors, and regulators now want businesses to be more honest and responsible in their climate-related statements. Focusing on Scope 1 and 2 is no longer enough. Businesses that neglect Scope 3 emissions could drop in ESG rankings and receive negative public perception.
Why comprehensive emissions reporting is valuable
You can’t overemphasize the importance of comprehensive reporting of GHG. Some of the main benefits are as follows:
- More reliable risk assessment: By locating emissions hotspots, companies can notice risks to their operations and possible problems in the supply chain.
- Having precise data on emissions encourages optimistic investors who follow ESG.
- Eco-centered brands that keep their promises are a preferred choice in the eyes of customers.
- More efficiency usually leads to saving money in operations.
6 Ways Organizations Can Determine and Minimize Their Emissions
Even though it’s not easy for big organizations to cut down on their emissions, with determination, progress will be made. The following are some suggestions that will allow your company to check and control its emissions.
Evaluate the energy that your facility uses
Rely on services and organizations to help you gather data for all Scopes of emissions. Company emissions data can be monitored using the guidance given by the CDP and GHG Protocol.
Adopt science-based targets
Set your goals for reducing greenhouse gases according to what is needed to limit warming to 1.5°C, as suggested by the global community. SBTi assists businesses in identifying and verifying their targets.
Target the regions with the greatest emissions first
Focus on the areas that produce the largest amount of carbon first. While some companies deal with manufacturing (Scope 1), others are concerned more with their supply chains (Scope 3).
Involve partners
Be sure to involve suppliers and other partners in the process. Encourage the use of environmentally friendly policies and help vendors cut their emissions.
Utilize green technology
Promote the use of green technology for energy. Use solar, wind, or hydroelectric energy sources to reduce emissions from purchased energy.
Come up with new and innovative offerings.
Revise the design process to make products that use less material, consume little energy, and cause less waste.
Practical Examples of Curbing Greenhouse Gas Emissions
Here are a few examples of how emission reduction is happening in the real world.
Apple Inc.
For its corporate activities, Apple has met carbon neutrality requirements (how it operates and what it produces) and is now tackling carbon neutrality for the rest of its supply chain and products by the year 2030.
Unilever
Unilever tracks emissions in all areas and has committed to becoming net-zero in its supply chain by 2039. To achieve this, it invests in natural farming and produces more environmentally friendly products.
Conclusion
Handling Scopes 1, 2, and 3 emissions matters from both a practical and legal standpoint. Businesses that include reducing emissions in their main strategies are prepared for sustainable expansion, stability, and dominance.
