What are Scope 1, 2 and 3 emissions?
Understanding your company’s carbon footprint starts with knowing how emissions are categorized. The Greenhouse Gas Protocol breaks them down into three scopes—each representing a different source of emissions. Here's what they mean and why they matter for your business.
Scope 1: Direct Emissions
These are emissions from sources your company owns or controls.
Examples:
Fuel burned in company vehicles
On-site combustion (e.g., boilers, furnaces)
Refrigerant leaks from HVAC systems
Why it matters: Scope 1 is the most visible and controllable category. Reducing these emissions often starts with operational changes—like switching to electric vehicles or upgrading equipment.
Scope 2: Indirect Emissions from Energy
These are emissions from the electricity, heating, or cooling your company purchases.
Examples:
Emissions from power plants that generate your electricity
District heating or cooling systems
Why it matters: Scope 2 reflects your energy choices. Transitioning to renewable energy or improving energy efficiency can significantly reduce this footprint.
Scope 3: Indirect Emissions Across Your Value Chain
These are all other emissions your company doesn’t directly control but is responsible for through its activities.
Examples:
Business travel
Purchased goods and services
Inbound and outbound transportation
Employee commuting
Waste disposal
Use of sold products
Why it matters: Scope 3 often accounts for the majority of a company’s emissions. It’s also the hardest to measure—but increasingly required under regulations like CSRD and SEC climate disclosures.
Real-World Impact
Companies that understand and act on all three scopes are better positioned to:
Meet regulatory requirements
Respond to customer and investor pressure
Identify cost-saving opportunities
Build more resilient supply chains
What Should You Do Next?
Start with Scope 1 and 2: These are easier to measure and control.
Map your Scope 3 emissions: Even partial data helps identify hotspots.
Set reduction targets: Align with science-based goals where possible.
Engage suppliers: Collaboration is key to tackling Scope 3.
