Scope 1, 2, and 3 Emissions
A classification system for a company’s greenhouse gas (GHG) emissions.
Scope 1, 2, and 3 emissions are a way of classifying greenhouse gas (GHG) emissions, which strengthen the greenhouse effect and contribute towards global warming and are therefore coming under increasing scrutiny and regulation by governments and industry bodies.
The Greenhouse Gas Protocol is an organization that provides standards, guidance, tools, and training for business and government to measure and manage climate-warming emissions, and its Corporate Standard classifies a company’s GHG emissions into three ‘scopes’.
Scope 1 Emissions
Direct emissions from company-owned sources, or sources under its direct control. For example, your own factory or manufacturing facility.
Scope 2 Emissions
Indirect emissions from the generation of purchased energy. For example, emissions generated by the power station from which you buy your electricity.
Scope 3 Emissions
These are all indirect emissions (not included in Scope 2) that occur in the value chain of the reporting company, both upstream and downstream. For example, delivery vehicle emissions generated in the process of bringing raw materials to your manufacturing facilities or taking your finished goods to your customers.
Although many of the world’s largest companies account and report on the emissions from their direct operations and utilities (Scopes 1 and 2), the addition of Scope 3 emissions means that businesses can now act on the full range of corporate value chain and product emissions as well.
The value of this is highlighted by the fact that emissions along the value chain may well represent a company’s biggest greenhouse gas impacts.
Public companies are increasingly facing legal obligations to report their Scope 1, 2, and 3 emissions. Private companies, while not always legally obligated, are increasingly recognizing the importance of doing so as well, to maintain trust and meet their stakeholder expectations around sustainability and transparency.
Failure to do so may result in a raft of negative consequences, including financial penalties, an inability to obtain additional financial investment from financial institutions and private investors, the termination or non-renewal of existing contracts by clients and suppliers, and rejected tenders for new business.
Our ESG and carbon footprint management software can assist to:
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- Identify your emissions sources, track the consumption, and calculate your emissions per greenhouse gas
- Provide you with access to a global standard emissions factors database via our in-built calculation engine
- Set emission reduction targets and track your progress
IsoMetrix Lumina also includes the following emission factor libraries as established content within our indicator library for any Lumina user.
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- Greenhouse Gas (GHG) Protocol
- Department for Environment, Food, and Rural Affairs (DEFRA)
- AP-42: Compilation of Air Emissions Factors | US EPA
- Code of Federal Regulations Part 98: Mandatory GHG Reporting
Get a handle on your GHG Emissions Now
For more information, get in touch with one of our GHG and carbon footprint management software experts.
