Energy and carbon emissions have a one on one relationship. To create electricity, heat or movement is the way to put the required energy in a process of production or consumption. Understanding carbon emissions is key in developing an ESG strategy. The Greenhouse Gas Protocol sorts these emissions into three main types to see where they come from in a company's value chain.
Greenhouse Gas Emissions Explained
Scope 1: Direct Emissions
These are emissions from sources the company owns or controls. Examples are:
- On-site burning: Emissions from using fuels like natural gas or diesel for heat, cooling, or power.
- Process emissions: Emissions from making goods or chemicals.
- Leaks: Emissions escaping from equipment like fridges and ACs.
- Company vehicles: Emissions from cars, trucks, or planes owned by the company.
Scope 2: Indirect Emissions from Bought Energy
These emissions come from the energy the company buys, like electricity, heating, or cooling. They happen where the energy is made, like at power plants.
Scope 3: Other Indirect Emissions
This includes all other emissions in a company’s value chain, like:
- Goods and services: Emissions from making and moving items the company uses.
- Transport: Emissions from moving products to and from the company.
- Waste: Emissions from getting rid of company waste.
- Business trips: Emissions from employees traveling for work.
- Commuting: Emissions from employees traveling to and from work.
- Leased items: Emissions from rented buildings or vehicles.
- Investments: Emissions from investing in other businesses.
- Franchises: Emissions from franchise operations.
Why Knowing Scope 1, 2, and 3 Emissions Matters
By knowing these emissions, companies can cut down their carbon output. This means using energy wisely, choosing renewable energy, reducing waste, and making the supply chain greener.
The GHG Protocol
The Greenhouse Gas Protocol is a trusted guide for measuring and managing emissions. It shows how to find, calculate, and report emissions accurately and consistently.
The Importance of Carbon Footprints
Calculating a carbon footprint means checking all emissions linked to a product, service, or company. This helps spot areas to improve and set goals to cut emissions. Knowing their footprint helps companies make better choices to lessen their environmental impact.
By cutting emissions in all three scopes, companies can help create a more sustainable future.
