Scope 1 Emissions: Direct emissions from owned or controlled sources.
Scope 1 emissions are greenhouse gas (GHG) emissions directly produced by a company’s activities, facilities, or equipment. These "direct emissions" are generated by the company's own operations and are primarily the result of:
Generation of electricity, heat, or steam: This occurs from the combustion of fuel in stationary sources.
Transportation: The combustion of fuels in mobile sources such as vehicles used for transporting materials, products, waste, and employees.
Physical or chemical processing: Manufacturing or processing chemicals and materials.
Fugitive emissions: Intentional or unintentional releases, such as methane emissions from coal mines and hydrofluorocarbon (HFC) emissions during the use of refrigeration and air conditioning equipment.
Scope 1 emissions are a crucial part of a company’s carbon footprint and are often the easiest to quantify and manage since they are directly related to the company’s operations. Companies can reduce these emissions by adopting cleaner technologies, improving energy efficiency, switching to renewable energy sources like solar or wind power, and investing in projects that remove or avoid emissions, such as reforestation or renewable energy projects.
Read more about Scope 1 emissions.
Scope 2 Emissions: Indirect Emissions from Purchased Energy
Scope 2 emissions are GHG emissions indirectly produced by a company’s activities through the generation of purchased electricity, heating, or cooling. These "indirect emissions" are generated by third parties as a result of the company's energy consumption. The primary forms of purchased energy tracked include:
Electricity
Steam
Heat
Cooling
These emissions are identifiable via utility bills or metered energy consumption within the company's operational boundaries.
Read more about Scope 2 emissions.
Scope 3 Emissions: All Other Indirect Emissions
Scope 3 emissions are GHG emissions produced indirectly through a company’s value chain, encompassing upstream and downstream activities. These "indirect emissions" occur outside of the company's direct control but are integral to its operations. Scope 3 emissions can be categorized as:
Upstream Emissions
These are indirect GHG emissions related to purchased or acquired goods and services up to the point of receipt by the reporting company, including:
Downstream Emissions
These are indirect GHG emissions related to sold goods and services post-sale and transfer of control to another entity, including:
Scope 3 emissions often constitute the largest portion of a company's carbon footprint and are the most challenging to quantify and manage due to the complexity of the value chain. However, addressing these emissions is increasingly vital as stakeholders demand greater transparency and accountability regarding environmental and social impacts.
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