Understanding carbon footprint emissions scopes

Learn what are the different scopes of carbon footprint, why emissions are categorized in these 3 scopes, and examples of sources and reduction measures.

Understanding Carbon Footprint

The carbon footprint is essentially a measure of the total greenhouse gas (GHG) emissions caused by an individual, organization, or product. It’s a way to quantify the environmental impact of our actions and understand how our choices contribute to climate change.

Calculating a carbon footprint is not as straightforward as it might seem. There are many factors to consider, including the types of activities involved, the energy sources used, and the efficiency of processes. These complexities led to discussions and debates among scientists, policymakers, and businesses on how to standardize the measurement of carbon footprints.

In response to these challenges, the Greenhouse Gas Protocol (GHG Protocol) emerged as a leading framework for measuring and reporting GHG emissions. This comprehensive protocol provided a standardized methodology, ensuring consistency and comparability across different organizations and industries. One of its most significant contributions was the introduction of the three distinct emissions scopes, differentiating between direct and indirect emissions.

The introduction of these scopes was crucial for a more accurate and comprehensive understanding of carbon footprints. By differentiating between direct and indirect emissions, the GHG Protocol provided a clearer picture of the full environmental impact of an organization’s activities. This information is essential for effective climate action, as it enables organizations to identify their primary sources of emissions and develop targeted strategies for reduction.

Scope 1: Direct emissions

Scope 1 emissions are direct greenhouse gas emissions that originate from sources owned or controlled by an organization. These emissions are produced within the company’s boundaries and can be directly measured and quantified. They are also sometimes referred to as on-site emissions.

Examples of Scope 1 Emissions Sources:

On-site combustion of fossil fuels: Burning fossil fuels like natural gas, coal, or oil for energy production, heating, or cooling within a company’s facilities is a common source of Scope 1 emissions. This includes emissions from boilers, furnaces, and generators.
Industrial processes: Certain industrial processes, such as chemical manufacturing, metal production, and food processing, release greenhouse gasses as a byproduct. These emissions can be significant and vary depending on the specific industry and production methods.
Fugitive emissions: These are unintentional releases of greenhouse gasses from equipment or processes. Examples include leaks from pipelines, valves, and tanks, as well as emissions from wastewater treatment facilities.
Transportation: If a company owns and operates its own vehicles, the emissions from burning fossil fuels in those vehicles would be considered Scope 1 emissions. This includes emissions from trucks, cars, and heavy machinery.

Scope 1 Emission Reduction Measures:

To reduce Scope 1 emissions, companies can implement a variety of strategies, including:

Energy efficiency: Improving the energy efficiency of equipment and processes can reduce the amount of fossil fuels needed for operation. This can be achieved through upgrades to machinery, better insulation, and optimization of production processes.
Renewable energy: Investing in renewable energy sources, such as solar panels or wind turbines, can help to displace fossil fuels and reduce Scope 1 emissions.
Fuel switching: Switching to cleaner fuels, such as natural gas or biomass, can reduce emissions compared to coal or oil.
Process optimization: Identifying and eliminating inefficiencies in production processes can reduce energy consumption and associated emissions.
Leak detection and repair: Implementing regular leak detection and repair programs can help to prevent fugitive emissions from escaping into the atmosphere.

Scope 2: Indirect emissions from purchased energy

Scope 2 emissions are indirect greenhouse gas emissions that result from the generation of purchased electricity, heat, or steam. These emissions occur when the energy is produced off-site but consumed by the organization. They are also sometimes referred to as indirect emissions from purchased energy.

Examples of Scope 2 Emissions Sources:

Purchased electricity: When a company purchases electricity from the grid, the emissions associated with the generation of that electricity are considered Scope 2 emissions. This includes emissions from power plants that use fossil fuels, such as coal, natural gas, or oil.
Purchased heat: If a company purchases steam or hot water from an external source, the emissions associated with the generation of that heat are Scope 2 emissions. This often involves burning fossil fuels in a centralized heating plant.
Purchased cooling: Some companies may purchase chilled water or other cooling services from external providers. The emissions associated with the generation of this cooling, typically through refrigeration processes, are also considered Scope 2 emissions.
Self-generated electricity: Even if a company generates its own electricity, it may still have Scope 2 emissions if it purchases renewable energy certificates (RECs) to offset the emissions associated with its electricity consumption. These RECs represent the environmental benefits of renewable energy projects and can be used to claim that the company’s electricity is generated from renewable sources.

Scope 2 Emission Reduction Measures:

To reduce Scope 2 emissions, companies can implement a variety of strategies, including:

Energy efficiency: Improving the energy efficiency of operations can reduce the overall amount of electricity, heat, or steam needed. This can be achieved through energy-efficient equipment, lighting upgrades, and process optimization.
Renewable energy procurement: Purchasing renewable energy from the grid or entering into power purchase agreements (PPAs) with renewable energy producers can help to reduce Scope 2 emissions.
On-site renewable energy generation: Installing renewable energy systems, such as solar panels or wind turbines, can reduce the need for purchased energy and associated emissions.
Energy management systems: Implementing energy management systems can help to monitor and optimize energy consumption, identify areas for improvement, and reduce overall emissions.
Renewable energy certificates (RECs): Purchasing RECs or iRECs can be used to claim that a company’s electricity consumption is matched with renewable energy generation. This can help to offset Scope 2 emissions without directly investing in renewable energy projects. In the following lesson you have everything you have to know before purchases iRECs

Scope 3: Other indirect emissions

Scope 3 emissions are indirect greenhouse gas emissions that occur as a result of activities outside of an organization’s direct control. These emissions arise from the upstream and downstream activities of the value chain, including the production of purchased goods and services, transportation, waste disposal, and employee commuting. They are also sometimes referred to as value chain emissions.

The Greenhouse Gas Protocol has defined 15 categories of Scope 3 emissions. These include:

Upstream categories: Purchased goods and services, capital goods, leased assets, waste generated, business travel, employee commuting, outsourced activities, and purchased electricity not covered under Scope 2.
Downstream categories: Transportation of purchased goods, distribution, customer use of products, end-of-life treatment of products, and investments in other companies.

Here are some examples of the five most common categories of Scope 3 emissions:

Purchased goods and services: The emissions associated with the production and transportation of materials, components, or finished goods purchased by an organization.
Business travel: Emissions from air, rail, road, and sea travel undertaken by employees for business purposes.
Employee commuting: Emissions from employees’ personal transportation to and from work.
Upstream transportation: Emissions from the transportation of materials and components to the organization’s facilities.
Downstream transportation: Emissions from the transportation of products to customers or distribution centers.

ClimateTrade: Your Climate Partner

ClimateTrade offers a comprehensive suite of services to help companies understand and reduce their carbon footprint.

Our Prime Calculator is a user-friendly online tool that allows companies to estimate their carbon footprint quickly and easily. By inputting data on their energy consumption, transportation activities, and other relevant factors, companies can gain valuable insights into their emissions profile.

For more accurate and detailed assessments, ClimateTrade’s experts can conduct personalized carbon footprint calculations. These calculations take into account the specific operations and characteristics of each company, providing a more precise understanding of their emissions. This is a good option also for companies that start their sustainability path and need some guidance on how to do so.

ClimateTrade offers a marketplace for carbon credits, allowing companies to offset their unavoidable emissions by supporting verified carbon reduction projects. By purchasing carbon credits, companies can contribute to positive environmental outcomes and demonstrate their commitment to sustainability.

ClimateTrade’s API enables companies to seamlessly integrate carbon offsetting into their business processes. This means that emissions can be automatically offset as they occur, providing a convenient and efficient way to reduce their overall carbon footprint.

By leveraging ClimateTrade’s expertise and tools, companies can gain a deeper understanding of their carbon footprint, identify opportunities for reduction, and take meaningful action to address climate change.

Understanding carbon footprint emissions scopes