Scope 1, 2 and 3 emissions are the three groups into which a company divides its greenhouse gas emissions. Scope 1 is the gas the company produces itself, for example by burning fuel in its own boilers and vehicles. Scope 2 is the gas produced by power plants to make the electricity that the company buys. Scope 3 is every other emission linked to the company, such as its suppliers' factories, employees' travel and the use of its products by customers.
Here is how a company works them out in general. It measures its own fuel use and multiplies it by an emission factor, a standard number of kilograms of gas for each litre or unit. It does the same for its electricity bills. For scope 3, it needs data from suppliers and customers, which is much harder to collect. For most companies, scope 3 is the largest group, often more than three quarters of the total.
The scopes are defined so that no two companies count the same emission in the same scope. The gas from a power plant is the plant's scope 1, but it is the scope 2 of the factory that buys the electricity. For electricity, the emission factor is the kilograms of gas released for each unit of power. India's Central Electricity Authority publishes a factor for the national grid, which is above 0.7 kg for each kilowatt-hour. In India, the largest listed companies must report on sustainability in a format set by SEBI, and exporters are asked for the numbers by buyers abroad.
Take, for example, a steel plant. Burning coal in its furnace is scope 1, the electricity from the grid is scope 2, and the mining of iron ore by its suppliers is scope 3. Consider a car maker. The exhaust from its cars while customers drive them is scope 3, and it is usually far larger than the emissions of its factory. For instance, a software company has very low scope 1, but the electricity for its own data centres is scope 2. The cloud servers it rents count in its scope 3.
Software products that help include carbon accounting, greenhouse gas measurement, energy optimisation and carbon credits. The scene counting carbon puts them together.
How is it different from a carbon footprint? A footprint is the total. The scopes split the total by who controls the source.
Appears in
- Travel policy management↗ Travel technologyA company's flights and hotel stays booked by employees count as Scope 3 emissions, which the policy tool measures.
- Mobile battery storage↗ Power generation and storageReplacing a site's diesel generator with a battery cuts a contractor's Scope 1 emissions from burning diesel.
- Carbon accounting software↗ Sustainability managementThe software sorts a company's electricity bills as Scope 2, and its suppliers' data as Scope 3.
- Methane and greenhouse gas monitoring↗ Sustainability managementA sensor measures methane leaking from a gas pipeline, a company's own Scope 1 emission.
- Soil carbon credits↗ Sustainability managementA food company pays farmers to store carbon in soil, to reduce its Scope 3 emissions from farm inputs.