{"id":3107,"date":"2024-10-23T09:00:02","date_gmt":"2024-10-23T06:00:02","guid":{"rendered":"https:\/\/dge.ee\/?p=3107"},"modified":"2024-10-29T15:27:04","modified_gmt":"2024-10-29T13:27:04","slug":"what-are-scope-1-2-and-3-emissions","status":"publish","type":"post","link":"https:\/\/dge.ee\/en\/what-are-scope-1-2-and-3-emissions\/","title":{"rendered":"What Are Scope 1, 2, and 3 Emissions?"},"content":{"rendered":"

When discussing sustainability, terms like \u201cScope 1, Scope 2, and Scope 3\u201d frequently come up. These concepts are essential for understanding and managing the climate impact of companies, projects, and organizations. Let\u2019s explore what these scopes mean and why they are crucial.<\/strong><\/p>\n<\/div>

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Direct vs. Indirect Emissions<\/span><\/h2>\n

According to the GHG Protocol<\/strong><\/a> methodology, greenhouse gas (GHG) emissions related to an organization\u2019s activities are divided into direct and indirect emissions. Scope 1 emissions<\/strong> (also known as direct emissions) refer to emissions from sources and processes directly controlled by the company. For example, this could be energy production from burning biomass on-site. Scope 2 and Scope 3 emissions<\/strong> are indirect, meaning they result from the company\u2019s activities but are not directly controlled by the company.<\/p>\n<\/div>

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Why are Emissions Categorized Into Three Scopes?<\/span><\/h2>\n

To effectively reduce emissions, it\u2019s crucial to understand and measure where they come from. The three scopes help distinguish different types of emissions generated by a company\u2019s activities and its broader value chain.<\/p>\n

Why are they called \u201cscopes\u201d instead of \u201ccategories\u201d or \u201ctypes\u201d? The terminology comes from the GHG Protocol, the world\u2019s most widely used greenhouse gas accounting standard.<\/p>\n

The GHG Protocol states: \u201cA complete [greenhouse gas] emissions inventory \u2013 encompassing Scope 1, Scope 2, and Scope 3 emissions \u2013 allows companies to understand their entire value chain emissions and focus on the most significant reduction opportunities.\u201d<\/p>\n

This three-scope structure provides a clear and methodical framework for assessing an organization\u2019s GHG footprint. Differentiating between emission sources creates a solid foundation for data collection, identifying high-impact activities, setting goals, and developing improvement measures. A scope-based approach also simplifies reporting on GHG footprint assessment results and helps avoid double-counting across various business areas.<\/p>\n<\/div>

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\"Illustration<\/a><\/span>
Scopes in organizational GHG footprint assessment (Source: GHG Protocol | https:\/\/ghgprotocol.org\/)<\/div><\/div><\/div><\/div>
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Scope 1: Direct Emissions<\/span><\/h2>\n

As mentioned earlier, Scope 1 covers direct emissions from sources controlled or owned by the company. These include on-site energy production (such as heat energy generated by burning biomass), mechanical or chemical processes, and emissions from the company\u2019s vehicle fleet.<\/p>\n

Typically, the largest Scope 1 emissions occur in the energy and manufacturing sectors. These sectors are often associated with significant direct emissions, frequently linked to fossil fuel combustion for energy production (e.g., power plants, refineries) and industrial processes (e.g., steel and cement production). These processes directly emit large quantities of greenhouse gases, such as carbon dioxide (CO2) and methane (CH4).<\/p>\n<\/div>

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\"Scope<\/span><\/div>
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Scope 2: Indirect Emissions<\/span><\/h2>\n

Scope 2 emissions are related to the energy purchased and consumed by the company, such as electricity, heat, cooling, and steam. If the purchased energy comes from non-renewable sources (e.g., oil shale), Scope 2 emissions can be substantial, especially for offices, retail chains, large manufacturing plants, and data centers that rely heavily on electricity for lighting, heating, cooling, and production processes.<\/p>\n<\/div>

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\"Scope<\/span><\/div>
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Scope 3: Indirect Emissions Across the Value Chain<\/span><\/h2>\n

Scope 3 encompasses all other indirect emissions that do not stem from assets owned or controlled by the company but are associated with upstream and downstream activities within the value chain. This includes emissions from purchasing, using, and disposing of products from suppliers. Scope 3 emissions cover all sources outside the boundaries of Scope 1 and Scope 2.<\/p>\n

Typically, the largest Scope 3 emissions occur in sectors driven by manufacturing and supply chains, such as the automotive, electronics, and apparel industries. These sectors generate significant emissions throughout the production chain, including raw material extraction, component manufacturing, logistics, supplier activities, product use, and waste management. Because Scope 3 covers the entire value chain\u2019s indirect emissions, they can be significantly larger than Scope 1 and Scope 2 emissions and may constitute the majority of a company\u2019s carbon footprint. Often, Scope 3 categories are the most challenging part of a GHG inventory.<\/p>\n<\/div>

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\"Scope<\/span><\/div>
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What are Upstream and Downstream Emissions in Scope 3?<\/span><\/h2>\n

Scope 3 emissions are further divided into upstream and downstream activities<\/strong>.<\/p>\n

Upstream emissions<\/strong> encompass the indirect GHG emissions generated during the production of goods and services procured or supplied by the organization. These emissions occur from raw material extraction to product receipt by the company, also known as the \u201ccradle-to-gate\u201d approach.<\/p>\n

Downstream emissions<\/strong> occur after the final products leave the company and include GHG emissions associated with product transportation, sales, use, and disposal at the end of their life cycle, also known as the \u201cgate-to-grave\u201d approach.<\/p>\n<\/div>

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Carbon Dioxide Equivalent vs. Greenhouse Gases<\/span><\/h2>\n

Here, we also clarify the concepts of greenhouse gases (GHGs)<\/strong> and carbon dioxide equivalent (CO2e)<\/strong>.<\/p>\n

When assessing the GHG footprint, it\u2019s essential to define which greenhouse gases will be evaluated. Carbon dioxide (CO2) is perhaps the most well-known GHG, but there are others. The GHG Protocol<\/strong><\/a> and other international guidelines stipulate that a GHG footprint assessment must include at least seven major GHGs:<\/p>\n