A practical guide to Scope 1, 2 and 3 emissions
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If your business is serious about decarbonisation, you've probably encountered the terms Scope 1, Scope 2 and Scope 3.
They form part of the Greenhouse Gas Protocol Corporate Standard, a widely used framework for measuring and reporting greenhouse gas emissions. Together, the three scopes help businesses understand where their emissions come from, giving them a clearer picture of their carbon footprint and, importantly, where they can take action.
Here’s what each one means.
What are Scope 1 emissions?
Scope 1 covers direct emissions from sources your business owns or controls. This includes emissions from gas burned in boilers and other equipment at your sites, as well as fuel used in company-owned vehicles.
Reducing these emissions involves looking closely at the activities and assets you control. That could include electrifying your business or transitioning your company vehicles to electric alternatives.
What are Scope 2 emissions?
Scope 2 covers indirect emissions from the energy your business buys and consumes, including purchased electricity.
This is also an area where businesses can take meaningful action.
Your choice of energy supply matters. Understanding where your electricity comes from and choosing 100% renewable electricity, as thousands of businesses have already done by being supplied by us, can form an important part of a broader strategy to tackle the emissions associated with your organisation's energy use.
What are Scope 3 emissions?
Scope 3 is usually the most complicated piece of the puzzle.
The term covers other indirect emissions throughout your value chain, both upstream and downstream. Upstream emissions include those associated with the goods and services your business buys, like purchased goods and business travel. Meanwhile, downstream emissions can come from the distribution, use and eventual disposal of the products you sell.
The breadth of the definition means Scope 3 can be substantial. According to the Carbon Trust, Scope 3 emissions can account for as much as 90% of some organisations’ total carbon impact. It can also be harder to measure because much of the necessary data sits outside your organisation, with suppliers, customers and other partners.
Indeed, for an event organiser or sports club, emissions generated by fans travelling to and from a venue are classified as downstream Scope 3 emissions. Our partners at Future Yard and Leeds Rhinos are exploring innovative methods to tackle this source of emissions.
The answer isn't to let complexity prevent progress. Start by understanding where your biggest impacts are and improve the quality of your data over time.
Turning measurement into action
Calculating your emissions should be a starting point, not the end goal.
A practical approach is to identify all possible carbon reduction projects across your operations. Then find the timescale, implementation cost and carbon impact for each one; this can then be a way of devising the most effective steps you can take. For many businesses, energy is one of the clearest places to start.
Understanding your Scope 1, 2 and 3 emissions gives you the map. The next step is using that map to navigate your way to meaningful changes, from the energy powering your sites and vehicles to the choices made throughout your supply chain.
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