A Comprehensive Guide to GHG Protocol's 3-Scope Framework

July 31, 2024

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In the ongoing battle against climate change, understanding and mitigating greenhouse gas emissions have become paramount. To address this, the Greenhouse Gas Protocol, developed by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD), categorizes emissions into three scopes. These scopes provide a comprehensive framework for organizations to assess and manage their environmental impact. In this blog, we’ll delve into the intricacies of Scope 1, 2, and 3 emissions and explore their significance in the journey toward a sustainable future.

Breaking Down the Different Scopes 

Scope 1 Emissions 

Scope 1 emissions encompass direct emissions that result from sources owned or controlled by an organization. This includes emissions from on-site fuel combustion, industrial processes, and transportation fleets owned by the organization. Common examples are emissions from company-owned vehicles, on-site machinery, and the combustion of fossil fuels in manufacturing processes. Identifying and measuring Scope 1 emissions is crucial for organizations seeking to take responsibility for their direct impact on the environment. 

Scope 2 Emissions 

Scope 2 emissions revolve around indirect emissions associated with purchased energy. These emissions occur during the generation of electricity, heating, or cooling that an organization consumes. Scope 2 emissions are categorized into two distinct parts: market-based and location-based. The former relates to the emissions intensity of the electricity market, while the latter pertains to the emissions linked to the specific location of energy consumption. By understanding and managing Scope 2 emissions, organizations can play a pivotal role in supporting the transition to sustainable energy sources. 

Scope 3 Emissions 

Scope 3 emissions extend beyond the boundaries of an organization, encapsulating indirect emissions that arise from its value chain. This includes emissions from the extraction of raw materials, production of purchased goods and services, transportation of products, and end-of-life treatment of sold products. While Scope 1 and 2 focus on direct and indirect operational emissions, Scope 3 brings attention to the broader environmental impact associated with an organization's entire supply chain. Addressing Scope 3 emissions is often more challenging, but it is essential for a comprehensive and transparent approach to sustainability. 

Decarbonizing Your Organization With an End-to-End Climate Solutions Provider

Understanding the three scopes of emissions is instrumental for organizations aiming to adopt sustainable practices. By categorizing emissions in this manner, businesses gain a holistic view of their environmental impact, paving the way for targeted reduction strategies. It also enables transparent reporting, allowing stakeholders to assess and compare the sustainability efforts of different organizations. 

By partnering with ACT, your organization can get assistance efficiently calculating, reducing, mitigating, monitoring, and disclosing its emissions — even those stemming from challenging sources like your supply chain – to hit both your near and long-term climate action targets. Our end-to-end decarbonization solutions are organized by the 3-Scope framework, and our experienced team can create a procurement strategy tailormade to your unique needs.  

Contact one of our experts today to get started on your climate journey. 

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