What are Scope 1, Scope 2, and Scope 3 Emissions?

In carbon emissions analysis, three distinct scopes provide insights into the sources of greenhouse gas emissions. This post aims to clarify the categories and designations in carbon emissions data, enabling you to more comprehensively understand the different aspects of carbon emissions. DitchCarbon uses these scopes in our analysis to help you gain more insight into the carbon emissions of your suppliers. Let’s explore each scope:

Scope 1 Emissions: These are the direct emissions originating from sources that the company owns or controls. 

Categories: 

  • Mobile combustion: emissions generated by the burning of fossil fuels in vehicles and equipment owned or operated by the organization
  • Stationary combustion: emissions arising from the burning of fossil fuels in stationary sources like boilers, furnaces, and power plants located on the organization’s premises
  • Fugitive emissions: unintentional emissions that escape during the production, processing, handling, or transport of gasses or liquids, often from equipment leaks or unintentional releases
  • Process emissions: emissions generated as a result of specific industrial or chemical processes within the organization, including reactions or activities that release greenhouse gasses into the atmosphere
 

Scope 2 Emissions: These are the indirect emissions tied to a company’s consumption of various forms of energy.

Categories:

  • Purchased electricity
  • Purchased steam
  • Purchased heat
  • Purchased cooling
  • Total location based: the sum of all indirect emissions generated from electricity, steam, heat, and cooling when calculated based on the emissions factors specific to the location where the energy is consumed
  • Total market based: the sum of all indirect emissions resulting from purchased energy, adjusted to reflect the environmental impact of the energy sources chosen by an organization, which may include renewable or lower-carbon options, providing a more accurate assessment of its carbon footprint

 

Scope 3 Emissions: These emissions encompass all indirect greenhouse gas emissions that result from an organization’s activities, including those associated with its supply chain, transportation, waste generation, and product use by customers.

Categories: 

  • Purchased goods and services: emissions associated with the entire lifecycle of products and services procured by an organization, from production to disposal
  • Capital goods: emissions linked to the manufacturing, transportation, and disposal of the long-term assets and equipment acquired by an organization, such as machinery and infrastructure
  • Fuel and energy related activities: emissions associated with the extraction, production, and transportation of the fuels and energy sources used by the organization, including coal, oil, and natural gas
  • Upstream transportation and distribution: emissions generated during the transportation and distribution of goods and materials from suppliers to the organization
  • Waste generated in operations: emissions arising from the waste generated by the organization’s operations
  • Business travel
  • Employee commute
  • Upstream leased assets: emissions associated with assets and equipment leased by the organization
  • Downstream transportation and distribution: emissions generated during the transportation and distribution of products and services to customers
  • Processing of sold products: emissions associated with processing, such as manufacturing or assembly, of products sold by the organization
  • Use of sold products: emissions resulting from the use of products and services by customers after purchase
  • End of life treatment of sold products: emissions associated with the disposal or recycling of products and services sold by the organization once they reach the end of their useful life
  • Downstream leased assets: emissions associated with assets and equipment leased to customers by the organization, including their production, transportation, and disposal
  • Franchises: emissions generated by franchise operations associated with the organization
  • Investments: emissions linked to the financial investments made by the organization, such as holdings in other companies or projects that generate emissions

Where Can You Find This Data?

  • In your DitchCarbon portal, under supplier profile, in the emissions category

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Get total coverage of your supply chain

Reduce emissions with actionable insights on all your suppliers, embedded seamlessly into your procurement stack