Types of Carbon Emissions: A Guide to Scope 1, 2, and 3

Are you starting your carbon accounting journey ?
Understanding the different types of carbon emissions is crucial. Luckily, they’re categorized into three different scopes. Let’s dive deeper and understand their significance for business and their sustainability goals, from direct emissions within their operations to indirect emissions up and down their supply chain.

What are scope 1, 2 and 3 carbon Emissions ?

Scope 1 : Direct Emissions 

Scope 1 emissions are the greenhouse gasses (GHGs) released directly from sources that an organization owns or controls. This scope is the most straightforward for organizations to influence and manage due to its direct nature. Examples include:

• Emissions from combustion in owned or controlled boilers, furnaces, vehicles etc. For instance if a company operates a fleet of trucks tor delivery, the exhaust emissions from these vehicles fall under scope 1.
• Process emissions from chemical reactions in manufacturing, like CO2 released during cement production.
• Fugitive emissions, which are leaks of gasses, such as methane leaks from natural gas systems.
  Reducing scope 1 emissions often involves the transition to cleaner energy sources for operational activities, improving energy efficiency, and implementing strict maintenance protocols to prevent leaks and reduce process emissions.

Reducing scope 1 emissions often involves the transition to cleaner energy sources for operational activities, improving energy efficiency, and implementing strict maintenance protocols to prevent leaks and reduce process emissions.

Scope 2: Indirect Emissions from Energy Consumed

Scope 2 emissions represent the indirect GHGs from the generation of purchased electricity, steam, heating, and cooling that a company consumes. These emissions occur at the plant where the energy is produced, but they are attributed to the organization that consumes the energy as a result of its energy choices. For example:

• If a company purchases electricity generated from coal-fired power plants, the emissions associated with producing that electricity are considered poart of the company’s Scope 2 emissions. 
• Implementing energy efficiency measures and sourcing renewable energy are primary strategies for reducing Scope 2 emissions. This might include purchasing green energy directly, investing in renewable energy projects, or buying renewable energy certificates (RECs) to make up for consumption. 

Scope 3: Other Indirect Emissions

Scope 3 emissions are all other indirect emissions that occur in a company’s value chain, both upstream and downstream. This category is the broadest and often the most challenging to measure and manage due to its encompassing emissions related to activities not owned or directly controlled by the reporting company. Examples include:

• Upstream activities, such as the extraction and production of purchased materials, transportation of purchased fuels, and waste disposal. 
• Downstream activities like the use of sold products and services, end-of-life treatment of sold products, and employee commuting.

Effectively addressing scope 3 emissions often involves leveraging detailed life cycle assessments, supplier engagement programs, and customer education initiatives to encourage broader sustainability practices across the value chain.

Using Life Cycle Assessment to enhance Carbon Accountability

Finally, as we conclude our exploration of carbon emissions and their significance in carbon accounting. It’s evident that effectively managing scope 1,2 and 3 emissions is crucial for businesses striving towards their sustainability objectives. Yet, with the appropriate strategies and tools, overcoming these obstacles is within reach for forward-thinking companies. 

By integrating Life Cycle Assessment (LCA) with the detailed tracking of scope 3 emissions. Organizations gain a comprehensive view of their environmental footprint. This is where our advanced LCA software, Pilario steps in as a game-changer. Pilario simplifies the complex task of aligning scope 3 emissions with LCA analysis, offering valuable insights that enable businesses to quantity and tackle their greenhouse gas emissions. 

Ready to transform your approach to carbon emissions and lead the way in sustainability? Discover how Pilario can make managing Scope 1, 2, and 3 emissions simpler and more insightful. Book a meeting with us today and take the first step towards a greener, more sustainable future for your business.