What are Scope 1, 2 and 3 emissions?

An organisation’s carbon footprint extends beyond the fuel and electricity it uses. Emissions also arise from the goods it purchases, employee travel and what happens to its products after they leave the business.

The Greenhouse Gas (GHG) Protocol divides these emissions into three scopes according to their source and relationship to the reporting organisation. This provides a framework for measuring emissions and identifying where reductions can be made.

What are Scope 1 emissions?

Scope 1 covers direct emissions from sources an organisation owns or controls. These include fuel burned in company vehicles, gas used to heat premises and diesel used in generators.

For example, fuel burned in a façade manufacturer’s own delivery vehicles would fall under Scope 1. The same applies to gas burned for heating within its factory.

The defining factor is whether the organisation owns or controls the source producing the emissions.

What are Scope 2 emissions?

Scope 2 covers indirect emissions from the generation of purchased electricity, steam, heating and cooling used by an organisation.

These emissions occur at the point of energy generation, rather than where the energy is consumed. However, they are included in the organisation’s footprint because they result from its energy use.

For a façade manufacturer, this could include purchased electricity used to power machinery, lighting and office equipment. Gas burned in its own boiler would fall under Scope 1, while heat purchased from an external provider would fall under Scope 2.

What are Scope 3 emissions?

Scope 3 covers other indirect emissions across an organisation’s value chain that are outside Scope 1 and Scope 2.

Examples include purchased materials, employee commuting, business travel, waste treatment and transport provided by external companies. Depending on the products and activities involved, Scope 3 can also include emissions associated with the use and end-of-life treatment of sold products.

The GHG Protocol divides Scope 3 into 15 categories, grouped into upstream and downstream activities.

What is the difference between upstream and downstream emissions?

Upstream emissions relate to the goods and services an organisation purchases and other activities supporting its operations. For a façade manufacturer, this could include the extraction and processing of raw materials, aluminium production and supplier transport.

Employee commuting, business travel and the treatment of waste generated by the business are also upstream Scope 3 activities.

Downstream emissions relate to activities associated with products after they are sold. These can include onward distribution, further processing, use and eventual disposal or recycling, where applicable.

The classification depends on the reporting organisation’s position in the value chain. Fuel burned by a supplier in its own manufacturing operations may be Scope 1 for that supplier, while the associated emissions form part of the purchasing organisation’s Scope 3 footprint.