A Simple Guide to Scope 1, Scope 2 & Scope 3 Emissions

infoclimatequest
Mar 10
2 min read

As organizations begin measuring their environmental impact, understanding the different types of greenhouse gas (GHG) emissions has become increasingly important. Businesses are expected to track emissions not only from their own operations but also across their wider value chain.

To standardize emissions reporting, emissions are categorized into Scope 1, Scope 2 and Scope 3 under the Greenhouse Gas Protocol. This classification helps organizations understand where emissions originate and identify opportunities to reduce them.

Scope 1: Direct Emissions from Operations

Scope 1 emissions refer to direct greenhouse gas emissions from sources owned or controlled by the company. These emissions come directly from company operations.

Common examples include:

fuel combustion in boilers or furnaces
company-owned vehicles
on-site diesel generators
refrigerant leakage from cooling systems

For example, if a manufacturing facility burns natural gas in its boilers to generate heat for production, the resulting emissions are classified as Scope 1 emissions.

Scope 2: Indirect Emissions from Purchased Energy

Scope 2 emissions refer to indirect emissions from the generation of purchased electricity, steam, heating or cooling used by the organization.

Although these emissions occur at the power plant that produces the electricity, they are attributed to the organization because the electricity is used in its operations.

For example, when a factory purchases electricity from the grid to power machinery and lighting, the emissions generated at the power station are counted as Scope 2 emissions.

In many industries, electricity consumption represents a significant portion of corporate emissions.

Scope 3: Indirect Emissions Across the Supply Chain

Scope 3 emissions include all other indirect emissions that occur throughout the organization’s supply chain, both upstream and downstream.

Examples include:

production of purchased raw materials
transportation of goods from suppliers
employee commuting and business travel
waste generated during operations
distribution and use of products

Because Scope 3 emissions cover the entire value chain, they often represent the largest share of a company’s total carbon footprint.

Need Help Getting Started?

Climate Quest supports organizations in measuring greenhouse gas emissions and developing practical carbon management strategies.

👉 Visit https://www.climate-quest.com/contact-us to get in touch with our team.