Scope 1, 2, 3 Greenhouse Gas Emissions

Greenhouse Gas Emissions Overview

The state of today’s environmental health has been a hot topic for some time now, especially regarding air pollution. When discussing air pollution, one often hears the term greenhouse gas emissions (GHG emissions). GHG emissions are gases that are released through a variety of anthropogenic and biogenic processes that trap heat in the atmosphere. Below is a list of compounds that are the main contributors to GHGs:

    • CO2 – Carbon Dioxide
      Carbon Dioxide enters the atmosphere through the burning of fossil fuels (coal, natural gas, and oil), solid waste, trees, and other biological materials, as well as a result of certain chemical reactions.
    • CH4 – Methane
      Methane is emitted during the production and transportation of coal, natural gas, and oil. Methane emissions also result from livestock and other agricultural practices, land use, and the decay of organic waste in municipal solid waste landfills.
    • N2O – Nitrous Oxide
      Nitrous oxide is emitted during land use, agricultural and industrial activities, the combustion of fossil fuels and solid waste, as well as during the treatment of wastewater.
    • Fluorinated Gases
      Hydrofluorocarbons, perfluorocarbons, sulfur hexafluoride, and nitrogen trifluoride are synthetic, powerful greenhouse gases that are emitted from a variety of household, commercial, and industrial applications and processes. They are typically emitted in smaller quantities than other greenhouse gases but are very potent.

Understanding GHG emissions is an essential first step in mitigating and reducing a facility’s climate impact. Once baseline emissions are recognized, a company can pinpoint the most potent sources of emissions, set targets, allocate resources, and track progress towards those goals.

All emissions fall into specific categories or “scopes” based on where they source from: Scope 1, Scope 2, and Scope 3. Working outward from Scope 1 to Scope 3, the emissions become less direct. The following sections explain each scope in detail.

Scope 1 — Direct Emissions

Scope 1 emissions are the direct emissions that occur from sources that are owned or controlled by the facility. These emissions are associated with fuel combustion activities onsite such as boilers, furnaces, and vehicles. Facilities have the greatest control over Scope 1 emissions. Common reduction strategies include switching to electric alternatives:

    • Electric machinery
    • Electric forklifts
    • Electric cars/vehicles used on site
Scope 2 — Indirect Emissions

Scope 2 emissions are the indirect GHG emissions that result from the consumption of purchased or acquired electricity, heat, or steam. These emissions are generated outside of the organization’s boundaries, like a power plant, but are associated with the facility’s activities.

Electric power generation is a significant source of toxic metals and other pollutants, which can also cause land pollution through coal ash disposal.

Reduction strategies include:

Scope 3 — Value Chain Emissions

Scope 3 emissions are the result of activities from assets not owned or controlled by the reporting organization, but that the organization indirectly influences through its value chain. This includes upstream and downstream activities.

Scope 3 Subcategories:

    • Category 1 – Purchased goods and services
    • Category 2 – Capital goods
    • Category 3 – Fuel- and energy-related activities
    • Category 4 – Upstream transportation and distribution
    • Category 5 – Waste generated in operations
    • Category 6 – Business travel
    • Category 7 – Employee commuting
    • Category 8 – Upstream leased assets
    • Category 9 – Downstream transportation and distribution
    • Category 10 – Processing of sold products
    • Category 11 – Use of sold products
    • Category 12 – End-of-Life treatment of sold products
    • Category 13 – Downstream leased assets
    • Category 14 – Franchises
    • Category 15 – Investments
Challenges in Scope 1, 2, and 3 Emission Management
    • Complexity in identifying and measuring emissions across the value chain
    • Limited data availability and varying reporting standards
    • Influence from factors outside direct control
Pathways for Emissions Reduction & Value Creation
    • Supply chain optimization
    • Stakeholder engagement
    • Innovation and differentiation in sustainability

Reducing Scope 3 emissions often requires strong communication with suppliers, customers, and stakeholders to improve sourcing, processing, and transportation efficiency.

For guidance, refer to the US EPA and Greenhouse Gas Protocol.

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