As organisations work towards sustainability goals and respond to growing reporting requirements, understanding carbon emissions has become an essential part of doing business.
You may have heard the terms Scope 1, Scope 2 and Scope 3 emissions, but what do they actually mean, and why are they becoming increasingly important for both hiring clients and suppliers?
In this guide, we’ll explain the three carbon scopes, why they matter, and why Scope 3 emissions are becoming one of the biggest challenges organisations face.
Carbon scopes are categories used to classify greenhouse gas (GHG) emissions generated by an organisation.
The framework was established through the Greenhouse Gas (GHG) Protocol, the most widely used international standard for measuring and managing emissions.
By separating emissions into three distinct categories, organisations can better understand where their environmental impact comes from and identify opportunities to reduce it.
The three categories are:
While all three scopes are important, they vary significantly in terms of complexity and control.
Scope 1 emissions are generated directly from sources that an organisation owns or controls.
Examples include:
Because these emissions come directly from an organisation’s operations, they are typically the easiest to identify and measure.
For many businesses, Scope 1 reporting provides a clear starting point for understanding their carbon footprint.
Scope 2 emissions are associated with the electricity, heating, cooling or steam that an organisation purchases and consumes.
Although these emissions are generated elsewhere, they occur as a result of the organisation’s energy use.
Examples include:
Many organisations have made significant progress in reducing Scope 2 emissions through energy efficiency measures and the adoption of renewable energy sources.
However, for most businesses, Scope 1 and Scope 2 emissions represent only part of the overall picture.
Scope 3 emissions include all other indirect emissions that occur throughout an organisation’s value chain.
These emissions often sit outside an organisation’s direct control but are linked to its activities, suppliers, products and services.
Examples include:
For many organisations, Scope 3 emissions account for the largest proportion of their total carbon footprint. In some sectors, they can represent more than 70% of total emissions.
Understanding carbon scopes helps organisations:
Without understanding where emissions occur, it becomes much harder to create an effective sustainability strategy.
While Scope 1 and Scope 2 emissions are generally easier to measure because they relate to activities under an organisation’s control, Scope 3 emissions can be significantly more complex.
This is because Scope 3 emissions often involve suppliers, contractors, logistics providers and other external organisations. Collecting reliable information across an entire value chain can be challenging, particularly for organisations with large and diverse supply chains.
As a result, Scope 3 reporting has become one of the biggest areas of focus for organisations looking to improve their understanding of carbon impact.
Understanding the difference between Scope 1, 2 and 3 emissions is an important first step, but many organisations find that collecting and managing Scope 3 data presents the greatest challenge.
SafePlanet helps hiring clients engage suppliers, collect validated carbon data and gain greater visibility across their supply chain. At the same time, suppliers receive practical support to measure, report and share carbon information in a consistent and credible way.
By making supply chain carbon reporting simpler and more connected, SafePlanet helps organisations build a stronger foundation for understanding and managing their emissions.