Simplifying Scope 1, 2 and 3 Emissions: What You Need To Know

March 27, 2025

Introduction

 

You have probably heard the terms Scope 1, 2 and 3 emissions in carbon accounting before, but what do they really mean? Understanding and recognising these terms are important when analysing factors affecting your carbon footprint. In this article, I break down the scopes into simple definitions so you can apply these terms when considering your carbon footprint.

“Developing a full [greenhouse gas] emissions inventory – incorporating Scope 1, Scope 2 and Scope 3 gas emissions – enables companies to understand their full value chain emissions and focus their efforts on the greatest reduction opportunities.”

Greenhouse Gas Protocol

 

 

1) Scope 1 Emissions

Essentially, these emissions are direct from your individual and organisations’ activities, and are the greenhouse gases emitted when you burn things such as fuel. Scope 1 includes emissions from sources which a company directly owns.

Example: Driving company cars, burning fuel in company boilers or furnaces.


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2) Scope 2 Emissions

Scope 2 emissions refer to the emissions generated from electricity, steam or heating which you purchase. Making more renewable energy choices such as solar panels can contribute here in order to reduce your carbon footprint.

Example: Using electricity to power your home or office.

 

3) Scope 3 Emissions

These are indirect emissions caused by activities which occur in the supply chain. Specifically, these are things which individuals and companies do on your behalf. There are 15 emission factors within Scope 3:

  1. Purchased goods and services
  2. Capital goods
  3. Fuel and energy-related activities (not included in scope 1 or 2)
  4. Upstream transportation and distribution
  5. Waste generated in operations
  6. Business travel
  7.  Employee travel
  8. Upstream leased assets
  9. Downstream transportation and distribution
  10. Processing of sold products
  11. Use of sold products
  12. End-of-life treatment of sold products
  13. Downstream leased assets
  14. Franchises
  15. Investment

 

In Summary…

That was a short overview of what each greenhouse gas scope includes. Understanding what each of these scopes include is vital when it comes to assessing your carbon footprint.

Enistic can make the process easier for you through our platform. Our AI-enabled software and solutions calculate and manage your carbon footprint. Additionally, our panel of expert and experienced consultants are here to assist you with any further queries or support that you need.

Thank you for reading!


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