When talking about emissions, we hear terms like ‘Scope 1, 2 and 3 Emissions’ bandied about all the time – but what are they? How do they relate to climate change? What’s the scope?

The terminology of Scope 1,2 and 3, was first used in the Greenhouse Gas Protocol of 2001, an internationally accepted document. Since then, it has caught on and it is now widely used and recognised terminology.

This blog post is a deep dive into the specific nuances of each ‘Scope Emissions’. Once you understand what type of emissions you’re producing it’s much easier to develop a strategy that effectively reduces them.

‍Scope 1 Emissions

These are greenhouse gas emissions that a company produces directly, from sources that it both owns and controls. For example, emissions produced by a company running its boilers or its vehicles.

These emissions can be reduced by introducing more energy efficient systems, from installing insulation to switching to Electric Vehicles. Some of these technologies may appear expensive at first but many have a high return on investment, so it’s worth engaging in a cost-benefit analysis to determine which steps your business can take to help it grow sustainability.

Scope 2 Emissions

These are greenhouse gas emissions that a company produces indirectly from the purchase or acquisition of electricity, steam, heat or cooling that it uses. For example, the energy it buys for heating and cooling buildings.

These emissions can be reduced by switching gas and electricity suppliers to clean energy suppliers. Read our blog post where we explain what exactly clean energy is, so you can avoid greenwashing. Or click here to find out more about our clean energy brokerage, where we find you the cheapest and cleanest energy.

Scope 3 Emissions

These are all the greenhouse gas emissions produced indirectly that are not included in Scope 2 Emissions. Scope 3 emissions are from sources which are neither directly controlled nor owned by the company. These emissions occur both upstream and downstream, i.e., within the company’s supply chain and its customer base. For example, the emissions produced by the factory that a company’s supplier owns and operates.

This category is usually responsible for the largest quantity of emissions, but it is also the hardest to control. However, steps can be taken to reduce Scope 3 Emissions, for example, you can negotiate with your current suppliers and develop a sustainability action plan, or you can consider changes to your supply chain.

Scopes: A Real-World Example

Green Company Ltd, a start-up, wants to become an inherently sustainable business so it decides to introduce a sustainability strategy to reduce its emissions. Green Company Ltd therefore enters into a green electricity contract to power its buildings and vehicles. It also requires all of its suppliers to have 100% green electricity.

Which Scope Emissions is Green Company Ltd reducing?

A) Scope 1

B) Scope 2

C) Scope 3

D) All of the above

That’s right! The answer is d) – entering into a green electricity contract reduces the emissions from its vehicles (Scope 1) and reduces the emissions from the electricity it buys to heat the building (Scope 2). Requiring its suppliers to have green electricity also reduces its Scope 3 emissions.

Key Takeaways

Categorising emissions into Scopes helps people better understand where emissions are coming from and how to reduce them.

Scope 1 and 2 emissions are within the control of the company to a great extent. This means steps can easily be taken to reduce these emissions.

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