Understanding Scope 1, 2, and 3 Emissions: A Guide to Corporate Carbon Footprint

Climate Basics 

What are Scope 1, 2, and 3 emissions?

Scope 1, 2, and 3 emissions are greenhouse gases released across an organization’s entire value chain. Scope 3 emissions are the most complex, released before and after a product is delivered or consumed. 

Organizations must first understand their emissions across Scope 1 (direct emissions), Scope 2 (indirect emissions from purchased electricity), and Scope 3 (all other indirect emissions in their value chain). Tackling these emissions, particularly the complex Scope 3, is not just a task, but a strategic move that is essential for businesses aiming to achieve their net-zero ambitions. 

This understanding is the first step towards developing a transition plan towards net zero, involving several key steps. Companies must start by identifying their primary GHG emission sources across all scopes. This mapping forms the basis for setting realistic targets and finding the most significant areas for emission reductions.