Scope 1 emissions specifically refer to direct emissions that result from sources that are owned or controlled by an organisation. These emissions are a direct consequence of the organisation's activities and operations and include:
- Emissions from the combustion of fossil fuels within the organisation's own facilities or operations. It covers emissions from sources such as boilers, furnaces, on-site power generation, and company-owned vehicles.
- Chemical reactions that produce greenhouse gas emissions as a result of chemical reactions. Examples include emissions from cement production, metal smelting, and chemical manufacturing.
- Emissions from on-site waste such as disposes of waste at organisations own facilities.
- Refrigerants and other gases such emissions of certain refrigerants and industrial gases, often potent greenhouse gases if they are released from equipment owned or controlled by the organisation.
Scope 1 emissions are considered to be the most direct and controllable emissions for an organisation because they arise from sources over which the organisation has direct authority.
Scope 2 emissions specifically refer to indirect emissions associated with the generation of electricity, heating, cooling, or steam purchased or consumed by an organisation. Unlike Scope 1 emissions, which are direct emissions from sources owned or controlled by the organisation, Scope 2 emissions result from activities that are external to the organisation but are related to its energy consumption.
Scope 2 emissions are typically associated with the purchase of electricity from a utility or energy provider. These emissions are generated at the electricity generation source, which could be a power plant, a wind farm, a solar facility, or other forms of electricity generation and include:
- Electricity consumption used for lighting, heating, cooling, and operating equipment within the organisation's facilities.
- Grid emissions determined by the carbon intensity of the electricity grid from which the organisation purchases its electricity. If the electricity grid relies heavily on fossil fuels, Scope 2 emissions will be higher compared to grids that rely more on renewable energy sources.
- Carbon intensity influenced by the carbon intensity of the electricity source. For example, electricity from coal-fired power plants typically has a higher carbon intensity compared to electricity generated from wind, solar, or hydroelectric sources.
Scope 3 emissions represent a broader category of emissions that are generated as a result of an organisation's activities but occur from sources not owned or controlled by the organisation. These emissions are often the most challenging to quantify and manage as they encompass the entire value chain of the organisation.
- Supply chain emissions and greenhouse gas emissions generated at various stages of the supply chain, from raw material extraction to manufacturing, transportation, and distribution.
- End-of-life emissions and the disposal or recycling of products at the end of their life cycle, as well as any emissions from the disposal of waste generated by the organisation's activities.
- Employee commuting from the commuting and business travel of the organisation's employees, which may include commuting by car, air travel, and other forms of transportation.
- Transportation and distribution from the transportation and distribution of the organisation's products and services to customers and markets.
- Upstream and downstream transportation associated with the transportation of raw materials and finished products to and from the organisation.
- Use of sold goods and services from the use of products and services sold by the organisation, such as energy consumption or emissions resulting from using a software product.
The key differentiator between the scopes is ownership and control. Scope 1 relates to emissions from sources directly controlled by the organisation, Scope 2 involves indirect emissions from the generation of purchased energy, and Scope 3 covers a wider range of indirect emissions throughout the value chain.
Organisations aiming for a comprehensive understanding of their environmental impact consider all three scopes. Scope 1 and 2 are often referred to as 'direct' emissions, while Scope 3 is considered 'indirect'.
Organisations can have varying degrees of control and influence over emissions in each scope. While they have direct control over Scope 1 emissions, Scope 3 emissions may be more challenging to manage due to dependencies on external factors and third-party activities.