CO2e emissions are measured against a standardised framework set by the Greenhouse Gas (GHG) Protocol, which splits them into three ‘scopes’.
Scope 1
Scope 1 refers to direct emissions from resources and activities owned or controlled by a company. This includes things like:
- Emissions from fuels used in company activities (e.g. company vehicles)
- Unintended emissions (e.g. leaks from air-conditioning units)
- Emissions released during manufacturing and industrial processes
Scope 2
Scope 2 refers to indirect emissions released from the generation of purchased energy. This includes things like:
- Electricity
- Heating
Scope 3
Scope 3 refers to all other indirect emissions not included in scope 2. Scope 3 emissions can be broken down into two categories: upstream emissions and downstream emissions. Although they usually make up the largest portion of a company’s emissions, scope 3 emissions are harder to track and manage as they aren’t directly owned or controlled by your company.
Upstream emissions are created during production, and come from things like:
- Goods and services used to produce your end product (e.g. packaging, raw materials)
- Transportation (e.g. between suppliers or warehouses, or the transportation of materials and goods)
- Employee commuting
- Business travel
Downstream emissions are produced after production by the distribution of your goods or services, and include things like:
- Transportation (e.g. delivery to the end customer)
- Energy consumed in the use of sold products
Why should I measure scope 3 emissions?
The GHG Protocol currently requires companies to track scope 1 and 2 emissions, with the flexibility to include scope 3 only if they choose.
However, with the European Green Deal aiming to align the EU’s policies with the need to reduce greenhouse gas emissions by at least 55% by 2030, companies will soon be required to report on emissions covered by all scopes, including scope 3.
As scope 3 emissions typically make up the majority of a company’s carbon footprint, it’s important to include them in your calculations in order to understand your true environmental impact.
By measuring scope 3 emissions, companies can understand their wider impact, and make changes or collaborate with suppliers to reduce emissions as a result.
It’s also important to measure scope 3 emissions when trying to achieve net zero, as these will need to be managed and minimised along with scope 1 and scope 2 emissions.
Powered by Lune, the Soldo CO2e tracker lets you calculate, report on and offset your scope 3 emissions with ease. Just let your employees spend as normal, and the emissions generated by each transaction will be calculated automatically.