What are Scope 1, Scope 2, and Scope 3 emissions?

Scope 1, Scope 2, and Scope 3 emissions are classifications used to categorize greenhouse gas (GHG) emissions based on their sources and the company's control over them.

Scope 1 emissions refer to direct emissions from owned or controlled sources. This includes emissions from company-owned facilities, vehicles, and machinery that burn fossil fuels directly. It provides a clear picture of the emissions directly attributable to the company’s activities.

Scope 2 emissions account for indirect emissions from the generation of purchased electricity, steam, heating, and cooling consumed by the organization. While these emissions are not produced by the company itself, they are a consequence of its energy use. Managing Scope 2 emissions often involves efforts to improve energy efficiency or to utilize renewable energy sources.

Scope 3 emissions encompass all other indirect emissions that occur in a company’s value chain. This includes emissions from activities such as the production of purchased goods and services, transportation, waste disposal, and employee commuting. Scope 3 can represent the largest portion of a company’s total emissions, highlighting the importance of engaging with suppliers and customers to reduce overall carbon footprints.

This categorization helps organizations to better understand their emissions profile and prioritize actions to reduce their environmental impact. By focusing on these three scopes, businesses