Take Control of Your Environmental Impact and Build a Path to Net-Zero

In today’s world, addressing climate change and reducing greenhouse gas (GHG) emissions is more critical than ever. Scope 1, 2, and 3 emissions form the foundation of how organizations measure their carbon footprint and manage their environmental impact. These three categories help businesses understand the full extent of their emissions across their operations and supply chains, enabling them to take targeted action toward reducing their impact on the environment.

Whether you’re just starting to measure your emissions or aiming to achieve net-zero emissions, understanding Scope 1, Scope 2, and Scope 3 emissions is essential for setting meaningful climate targets and improving your sustainability performance.

What is Scope 1, 2, and 3 Emissions?

The Greenhouse Gas Protocol divides emissions into three distinct categories: Scope 1, Scope 2, and Scope 3. These categories help organizations track and manage emissions from their direct activities as well as indirect sources within their value chain.

Scope 1: Direct GHG Emissions

Scope 1 emissions are direct emissions from owned or controlled sources. These are emissions that result from activities under the direct control of an organization, such as fuel combustion or industrial processes.

Examples of Scope 1 emissions include:

Emissions from company-owned vehicles and fleet operations.

On-site energy generation, such as from gas boilers or backup generators.

Manufacturing processes that result in direct emissions, such as emissions from chemical reactions in production.

Fugitive emissions like leaks from refrigeration or air conditioning systems.

Scope 2: Indirect GHG Emissions from Purchased Electricity

Scope 2 emissions are indirect emissions resulting from the generation of purchased electricity consumed by the reporting company. While the company itself doesn’t directly generate these emissions, they occur because of the energy it purchases from utilities.

Examples of Scope 2 emissions include:

Emissions from the electricity used to power office buildings, manufacturing facilities, or retail stores.

Purchased steam or district heating/cooling used for heating or cooling buildings.

Scope 2 emissions are generally the easiest to measure, as utilities provide information about the amount of electricity or energy purchased.

Scope 3: Other Indirect GHG Emissions
Scope 3 emissions are the indirect emissions that occur throughout the value chain of an organization. These emissions can occur both upstream (before the product reaches the company) and downstream (after the product leaves the company). Scope 3 represents the largest share of an organization’s overall carbon footprint and can often be the most challenging to measure and manage.

Examples of Scope 3 emissions include:

Upstream emissions (before the product reaches the company), such as emissions from the extraction and transportation of raw materials, emissions from business travel, employee commuting, and waste disposal.

Downstream emissions (after the product leaves the company), such as emissions from the use of sold products, product disposal, and transportation of products to consumers or customers.

Supply chain emissions from suppliers, such as the carbon impact of products or services that the company purchases.

Scope 3 emissions are typically the most challenging for organizations to measure because they are less within the organization’s direct control. However, Scope 3 accounting is becoming increasingly important for businesses aiming to address their entire environmental footprint and reduce emissions across the value chain.

Why Should You Measure Scope 1, 2, and 3 Emissions?

Achieve Accurate Carbon Footprint Measurement
Measuring all three scopes of emissions is essential for understanding the true environmental impact of your operations. Scope 1 and 2 emissions are often easier to track, but Scope 3 emissions often make up a significant portion of a company’s overall carbon footprint. Accurately measuring all three scopes enables companies to create comprehensive, actionable strategies for reducing emissions across the board.

Meet Regulatory and Reporting Requirements
As governments and regulatory bodies increasingly implement stricter emissions reporting and climate-related regulations, companies are required to disclose their Scope 1, 2, and 3 emissions. Leading disclosure platforms, such as CDP (Carbon Disclosure Project), require businesses to report on emissions in all three categories to meet investor expectations and comply with evolving standards.

Support Sustainability and Climate Goals
Understanding and managing Scope 1, 2, and 3 emissions helps organizations set science-based targets, contribute to the Paris Agreement goals, and align their operations with global sustainability frameworks. Reducing emissions across all three categories is a critical component of a company’s journey to net-zero

Identify Risks and Opportunities
Measuring emissions across the entire value chain allows organizations to identify climate-related risks and opportunities. For example, companies may uncover energy efficiency opportunities in their supply chain or areas to reduce emissions in the use phase of their products.

Engage Stakeholders and Improve Reputation
Being transparent about Scope 1, 2, and 3 emissions demonstrates a commitment to corporate responsibility and sustainability. Businesses that measure, report, and take action to reduce their carbon footprint are seen as leaders in sustainability, which can improve relationships with investors, customers, and other key stakeholders.

How to Get Started with Scope 1, 2, and 3 Emissions

Measure Your Emissions
Begin by collecting data on your emissions across all three scopes. For Scope 1, track direct emissions from company-owned sources. For Scope 2, gather information on your electricity and energy usage. For Scope 3, you may need to work closely with suppliers, transportation providers, and other partners to collect data on emissions from your supply chain.

Set Targets
Once you’ve measured your emissions, set science-based targets to reduce them. Start with reducing Scope 1 and 2 emissions, which are generally more controllable, and then work on strategies to reduce Scope 3 emissions by engaging suppliers, optimizing the use phase of products, and finding efficiencies in product disposal.

Track Progress and Report
Regularly monitor your emissions and track your progress toward your sustainability goals. Use recognized frameworks, such as the Greenhouse Gas Protocol, to ensure your emissions accounting is consistent and credible. Reporting your emissions annually through platforms like CDP and SBTi can help you build credibility and track progress over time.

Engage Your Supply Chain
Since Scope 3 emissions often represent the largest portion of a company’s carbon footprint, working with your supply chain is key. Engage suppliers to disclose their emissions, encourage them to improve their environmental performance, and collaborate on reducing emissions throughout the value chain.

Why Work with Us on Managing Scope 1, 2, and 3 Emissions?

At Environment, Health & Safety Services, we help organizations navigate the complexities of measuring and managing Scope 1, 2, and 3 emissions. Our team of sustainability experts provides tailored solutions to help your business:

Measure and report your carbon footprint across all three scopes.

• Develop and implement reduction strategies for Scope 1, 2, and 3 emissions.
• Align with global standards such as the Greenhouse Gas Protocol, SBTi, and CDP.
• Engage suppliers and partners to reduce emissions across your value chain.
• Set science-based targets and track progress toward net-zero emissions.

With our guidance, you can take control of your environmental impact, reduce risks, and position your company as a leader in sustainability.