Let’s just check this post’s for you – have you heard about emissions ‘scopes’ but don’t really understand what they are? Do you want to understand how to organise your company’s carbon footprint? Do you want to make sure your carbon reporting aligns with the internationally recognised approach to accounting for your greenhouse gas emissions? If the answer to any of these is yes, read on!
The Greenhouse Gas Protocol, developed by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD), defines and standardises the measurement and reporting of greenhouse gas emissions. It’s the standard that other standards reference and underpins the globally accepted principles of GHG accounting.
The GHG Protocol categorises GHG emissions (you may also hear the terms carbon, carbon dioxide, CO2 also mentioned and, in this context, they all mean the same thing – emissions of greenhouse gases to the atmosphere) into three scopes to provide a comprehensive understanding of an organisation's environmental impact and to make sure responsibility for emissions can be accurately allocated. Here's a summary of the three emission scopes:
Scope 1: Direct Emissions
Scope 1 emissions encompass direct greenhouse gas emissions produced by an organisation from sources that are owned or controlled by them. These emissions are a result of the organisation's day-to-day operations and include activities like:
Combustion of Fossil Fuels: This includes emissions from the burning of fuels in company-owned vehicles, stationary equipment, and on-site power generation. For most organisations, use of fossil fuels is the lion’s share of Scope 1 emissions.
Fugitive Emissions: These are unintentional releases of greenhouse gases, such as leaks of refrigerant gasses from air conditioning systems.
Burning Biomass: If an organisation uses biomass as a fuel source, only some of the resulting emissions should be reported under Scope 1. That’s because, just like other combustion processes, burning biomass releases several different chemicals and, while some of these (such as Nitrous Oxide, N2O) are reported here, any carbon dioxide (CO2) produced is reported separately to the scopes because it was CO2 that was sequestered while the biomass was growing.
Chemical Reactions: Certain industrial processes release greenhouse gases as byproducts so these may be relevant depending on what your organisation does.
Measuring and managing Scope 1 emissions is crucial for organisations because they represent emissions directly under their control and therefore most likely to be able to be reduced.
Scope 2 Emissions: Indirect Emissions
Scope 2 emissions comprise indirect greenhouse gas emissions associated with the generation of purchased electricity, heating, and cooling consumed by an organisation. While these emissions are not produced on-site, they result directly from the amount of purchased energy consumed.
Under the GHG Protocol, Scope 2 emissions are categorised into two distinct approaches to reporting: location-based and market-based.
Location-Based Emissions: This method calculates emissions based on the average emissions intensity of the grid from which an organisation draws its electricity – in the UK, that’s typically the National Grid. Because it uses a national average, this method does not account for specific procurement choices.
Market-Based Emissions: This approach allows organisations to account for the emissions associated with the specific mix of energy sources they purchase. For example, if an organisation procures a substantial portion of its energy from renewable sources where their supplier can provide suitable data on associated emissions, it may be able to report lower Scope 2 emissions. Note that if organisations wish to use market-based reporting and want to comply with the GHG Protocol Corporate Standard, then they must report using both methods.
The Scope 2 category is critical because it encourages organisations to assess the environmental impact of their energy choices and provides transparency regarding their commitment to reducing emissions indirectly associated with energy consumption.
Scope 3 Emissions: Other Indirect Emissions
Scope 3 emissions encompass all other indirect greenhouse gas emissions that occur as a result of an organisation's activities but are beyond the organisation's direct control or ownership.
These emissions are typically associated with the organisation's value chain, including both up and down stream activity such as business travel, employee commuting, and other external activities. Scope 3 emissions are typically the most extensive and complex to measure and manage. They are organised into 15 categories:
Scope 3 emissions often make up the largest share of an organisation's carbon footprint. Addressing these emissions requires collaboration across the supply chain and may involve changes in procurement, transportation, product design, and other areas to reduce indirect impacts. Companies that aspire to achieve more comprehensive sustainability goals must account for Scope 3 emissions.
In summary, the Greenhouse Gas Protocol's three scopes provide a structured framework for organisations to comprehensively assess and report their greenhouse gas emissions. Scope 1 covers direct emissions under the organisation's control, Scope 2 deals with indirect emissions associated with purchased energy, and Scope 3 addresses a broad range of indirect emissions from external activities, making it a critical component in achieving sustainability and emissions reduction targets.
If you want to develop a better understanding of your emissions associated with all three Scopes, and how to reduce them, get in touch today.
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