Scope 1: Direct Greenhouse Gas Emissions

Direct emissions include the CO₂ released from all the fuels a company burns in its operations. For some industries, emissions of other greenhouse gases, such as refrigerants or nitrous oxide, must be added. Scope 1 comprises the emissions from company vehicles, boilers, furnaces, and (in-house) production processes.

Scope 2: Indirect Emissions from Energy

Scope 2 emissions are the indirect emissions caused by the generation of purchased electricity, steam, heating, and cooling that a company consumes. The GHG Protocol assigns the buyer the primary responsibility for these emissions, even though they physically occur at the location of the energy supplier.

View Roadmap for scope 1 and 2

Scope 3: Other indirect emissions from the chain

Scope 3 emissions include all other indirect emissions that occur in a company’s value chain, both upstream and downstream. A company’s scope 3 emissions are usually at least 10 times higher than its scope 1 and 2 emissions combined. Even though the company only has ‘indirect’ influence on these emissions, there are very real opportunities for emission reduction in scope 3.

Upstream emissions

The ‘upstream’ category for scope 3 emissions primarily relates to a company’s purchases. For most companies, raw materials and auxiliary materials used in their (end) product represent the largest sources of scope 3 emissions. Upstream emissions also encompass other activities essential for operations, such as:

• Outsourced employment
• Purchased services
• Outsourced transportation
• Waste disposal
• Capital goods purchased or rented
• Employee commuting

Downstream emissions

Downstream emissions relate to the further lifecycle of products, extending to the end user. This includes post-processing, transportation, and product use. Additionally, the GHG Protocol classifies companies associated with yours under the downstream category. This includes franchises and investments in other companies.

View Roadmap to map out scope 3

Advantages of calculating your CO₂ Footprint

• Insight: Gaining a better understanding of and ability to answer current and future customer questions.
• Cost savings: Increased energy efficiency and waste reduction can result in significant cost savings.
• Reputation and customer confidence: Consumers are becoming increasingly environmentally conscious and are more likely to choose companies that take sustainability seriously and communicate clearly and transparently about it.
• Legal compliance: Laws and regulations increasingly require a detailed carbon footprint for Scope 1, 2, and sometimes 3.
• Future-proofing: By taking action now, a company prepares for a future where sustainability is central.

Sustainable business practices benefit not only the environment but also companies themselves. Understanding the different scopes enables companies to plan strategically, take action to minimize their carbon footprint, and become future-proof.