Understanding Scope 1, 2 & 3 Emissions

In today's climate-conscious business environment, understanding and measuring greenhouse gas emissions has become crucial for organizations worldwide. The Greenhouse Gas Protocol's categorization of emissions into Scope 1, 2, and 3 provides a comprehensive framework for carbon accounting that enables businesses to identify, quantify, and ultimately reduce their environmental impact.
Scope 1: Direct Emissions
Emissions from sources owned or controlled by your company
Manufacturing Company Fleet Fuel Storage Equipment SCOPE 1: DIRECT EMISSIONS Owned or Controlled Sources

Scope 1 emissions are direct greenhouse gas emissions that occur from sources owned or controlled by your organization. These are emissions released directly into the atmosphere as a direct result of your business activities and represent the emissions over which you have the most control.

Key Characteristics:

These emissions are under your direct control and typically represent the most straightforward category to measure and manage. They include all fossil fuel combustion, industrial processes, and fugitive emissions from equipment you own or operate. Companies have immediate influence over these emissions through operational changes and equipment upgrades.

Common Examples:

Manufacturing Processes

Emissions from production facilities, furnaces, boilers, and chemical reactions

Company Fleet

Cars, trucks, delivery vehicles, and machinery owned by company

On-site Fuel Combustion

Natural gas, diesel, coal, and other fuels burned on premises

Equipment Leaks

Refrigerant leaks, methane emissions from equipment and facilities

Scope 2: Indirect Energy Emissions
Emissions from purchased electricity, steam, heating, and cooling
Power Plant Transmission Grid Your Building SCOPE 2: INDIRECT ENERGY EMISSIONS Purchased Energy

Scope 2 emissions are indirect greenhouse gas emissions from the generation of purchased energy consumed by your organization. While you don't directly control these emissions, your energy consumption choices directly influence them.

Key Characteristics:

These emissions occur at the power plant or energy generation facility, but are attributed to your organization because you purchased and consumed that energy. You can influence these emissions by choosing renewable energy sources, improving energy efficiency, or purchasing renewable energy certificates (RECs).

Common Examples:

Purchased Electricity

Electricity from the grid used for lighting, computers, and equipment

Purchased Steam

Steam purchased from external sources for heating or industrial processes

Purchased Cooling

Chilled water or cooling services purchased from external providers

Purchased Heating

District heating or hot water purchased from external sources

Scope 3: Value Chain Emissions
All other indirect emissions in your value chain
Supplier Transport YOUR COMPANY Delivery Customer Waste/Disposal Commuting Travel SCOPE 3: VALUE CHAIN EMISSIONS Upstream and Downstream Activities

Scope 3 emissions include all other indirect emissions that occur in your value chain, both upstream and downstream. These often represent the largest portion of a company's carbon footprint but are also the most challenging to measure and influence.

Key Characteristics:

These emissions occur outside your direct operational control but are consequences of your business activities. While harder to influence directly, they offer the greatest potential for emission reductions and often represent 70-90% of a company's total carbon footprint.

Common Examples:

Transportation & Distribution

Upstream and downstream logistics, third-party transportation

Purchased Goods & Services

Emissions from manufacturing of purchased materials and services

Employee Activities

Commuting, business travel, and remote work emissions

End-of-Life Treatment

Disposal, recycling, and waste treatment of sold products

Use of Sold Products

Emissions from customer use of your products throughout their lifetime

Investments & Partnerships

Emissions from investments, franchises, and joint ventures

Why Understanding Scopes Matters

Regulatory Compliance

Many jurisdictions now require scope-based emissions reporting. Understanding these categories ensures compliance with regulations like the EU's Corporate Sustainability Reporting Directive (CSRD) and various national climate laws.

Strategic Decision Making

Different scopes require different reduction strategies. Scope 1 might involve equipment upgrades, Scope 2 renewable energy procurement, and Scope 3 supply chain engagement.

Stakeholder Trust

Investors, customers, and partners increasingly expect transparent, comprehensive emissions reporting across all scopes to demonstrate genuine commitment to climate action.

Emissions by the Numbers

Understanding the scale and impact of different emission scopes

70-90%
of total emissions typically fall under Scope 3
15 Categories
of Scope 3 emissions defined by GHG Protocol
2x
more likely to meet climate targets with Scope 3 focus
30%
average emission reduction achievable in first year

Ready to Measure Your Complete Carbon Footprint?

Let GAMASUSCO help you understand and reduce emissions across all three scopes with our AI-powered carbon accounting platform.

Trusted by 500+ companies • SOC 2 Compliant • Expert Support