24 Nov Understanding Scopes 1, 2, and 3 Emissions: A Complete Guide
Understanding Scopes 1, 2, and 3 Emissions: A Comprehensive Guide
As environmental awareness grows, understanding greenhouse gas emissions becomes crucial for reducing carbon footprints, whether as an individual, business, or corporation. In line with the Paris Agreement’s goal to keep global temperatures below 1.5°C, the Greenhouse Gas Protocol (GHG) introduced a classification system to help organizations track their emissions. This system divides emissions into three categories: Scope 1, Scope 2, and Scope 3.
Launched in 1998, the Greenhouse Gas Protocol involves businesses, NGOs, governments, and other stakeholders, coordinated by the World Resources Institute (WRI). Its primary aim is to establish international standards for measuring and managing emissions. The GHG Protocol includes two key standards: the GHG Protocol Project Quantification Standard and the GHG Protocol Corporate Accounting and Reporting Standard.
The Corporate Accounting and Reporting Standard provides a step-by-step guide for companies to measure and report their emissions. Emissions are categorized into three scopes: Scope 1, Scope 2, and Scope 3. In this post, we will explore what each scope means and why they are important.
Scope 1 Emissions: Direct Emissions
Scope 1 emissions are direct emissions from sources owned or controlled by an organization. These are the easiest emissions to control because they arise from activities the organization has direct authority over. Scope 1 emissions can be classified into four main categories:
- Stationary Combustion: Emissions resulting from the combustion of fossil fuels in boilers, industrial applications, and combined heat and power (CHP) plants. Common fuels include natural gas, propane, and oil.
- Mobile Combustion: Emissions from vehicles owned or leased by an organization, such as trucks, cars, and vans powered by petrol or diesel. Electric vehicles (EVs) are classified under Scope 2 emissions.
- Fugitive Emissions: These are unintended leaks of greenhouse gases, often from refrigeration systems or air-conditioning units. F-gasses, a group of chemicals with high global warming potential (GWP), must be reported separately due to their significant impact.
- Process Emissions: Emissions from industrial processes such as cement manufacturing or chemical production. These are linked directly to the production process.
Scope 2 Emissions: Indirect Emissions
Scope 2 emissions arise from the purchase of energy, like electricity, steam, or heat. These emissions result from the production of the energy that an organization buys, and although the emissions do not occur on-site, the organization is still responsible for them. For instance, power plants that generate the electricity consumed by an organization produce Scope 2 emissions.
Organizations that purchase heat or steam from external sources also incur Scope 2 emissions, as these processes also release greenhouse gases. Reducing Scope 2 emissions requires a focus on the carbon intensity of the energy sources used and the consideration of cleaner energy options, such as renewable sources.
Scope 3 Emissions: Indirect Value Chain Emissions
Scope 3 emissions are the most challenging to manage, as they are not directly produced by the organization or its controlled assets. These emissions are indirect, resulting from activities throughout the organization’s value chain. Scope 3 emissions can arise upstream (e.g., from the production of purchased goods) or downstream (e.g., from the disposal of sold products).
This category covers a broad spectrum of activities, including the acquisition, use, and disposal of products, business travel, employee commuting, and more. Since Scope 3 emissions often stem from activities beyond an organization’s control, they are complex to measure and mitigate. However, they are essential to track, as they can represent a significant portion of an organization’s total emissions. Scope 3 emissions can be divided into 15 categories, addressing various aspects of the value chain, from raw material extraction to the end-of-life treatment of products.
Conclusion
Understanding Scope 1, 2, and 3 emissions is crucial for organizations aiming to reduce their carbon footprints and contribute to global sustainability efforts. By categorizing emissions in this way, businesses can identify their largest sources of impact and implement strategies to mitigate these emissions. Individuals can also play a role in reducing their carbon footprints by making informed choices that contribute to a more sustainable future.
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