Demystifying Emissions

A Beginner's Guide to Scopes 1, 2, and 3

In today's world, understanding a company's environmental impact is crucial. A key aspect of this is measuring greenhouse gas (GHG) emissions. But navigating the world of "scopes" can be confusing. Fear not! This blog offers a clear breakdown of Scopes 1, 2, and 3, empowering you to grasp a company's environmental footprint.

Scope 1: Direct Emissions Under Your Roof

Imagine a factory – its smoke stacks spewing emissions directly into the atmosphere. These are Scope 1 emissions – those released from sources owned or controlled by the company. This could include fuel combustion in boilers, vehicles, or industrial processes. Think of a bakery's ovens; the CO2 released during bread baking falls under Scope 1.

Scope 2: Purchased Energy's Hidden Footprint

Now, let's turn off the bakery's ovens and flip on the lights. The electricity powering those lights may come from a power plant burning fossil fuels. Even though the bakery doesn't directly burn the fuel, it's still responsible for the resulting emissions. These indirect emissions from purchased electricity, heat, or steam are classified as Scope 2.

Calculating Scope 2 with a Mixed Grid: Enter RECs

The complexity arises when the power grid supplying the bakery uses a mix of renewable and fossil fuel sources. Here's where Renewable Energy Certificates (RECs) come in. RECs represent the environmental attributes of electricity generated from renewable sources like solar or wind. By purchasing RECs, a company can "offset" the emissions associated with their purchased electricity, essentially claiming environmental responsibility for clean energy production.

For Scope 2 calculation, you'll need to multiply your electricity consumption by a "grid emission factor." This factor represents the average emissions per unit of electricity produced in your region. However, if you purchase RECs, you can adjust the calculation by subtracting the emissions equivalent of the RECs from the original grid emission factor. This reflects your commitment to supporting renewable energy.

Scope 3: The Wider Web of Influence

Now, let's imagine the bakery buys flour from a distant farm. The transportation of that flour and the farm's own agricultural practices also contribute to emissions. These indirect emissions occurring throughout a company's value chain, from raw material extraction to product disposal, are classified as Scope 3. Scope 3 can be the most significant contributor to a company's overall footprint, highlighting the importance of responsible sourcing and partnerships.

Understanding Scopes 1, 2, and 3 empowers you to assess a company's environmental commitment. By analyzing these emissions, companies can identify areas for improvement, invest in cleaner technologies, and ultimately, contribute to a more sustainable future.