Understanding Scope 1, 2, and 3 emissions is essential for any business looking to measure and reduce its carbon footprint. These categories help companies identify where emissions come from and what actions they can take to improve sustainability.
Scope 1: Direct Emissions
Scope 1 emissions are direct emissions from sources a company owns or controls. These include:
- Fuel burned on-site for heating and industrial processes
- Emissions from company-owned vehicles (such as delivery trucks or corporate fleets)
- On-site power generation, such as backup diesel generators
As Scope 1 emissions are under a company’s direct control, they are often the easiest to measure and reduce through energy efficiency measures, switching to renewable energy, or using electric vehicles.
Scope 2: Indirect Emissions from Purchased Energy
Scope 2 emissions come from the electricity, steam, heating, and cooling a company purchases to power its operations. While these emissions occur outside the business (at the energy provider’s facility), the company is still responsible for them.
Reducing Scope 2 emissions can be achieved by:
- Switching to renewable energy sources, such as wind or solar power
- Improving energy efficiency in offices and facilities
- Monitoring energy use to find areas for optimisation
Scope 3: Indirect Emissions from the Supply Chain and Business Activities
Scope 3 emissions are often the largest and most complex category, covering all indirect emissions that occur in a company’s value chain. These include:
- Business travel (flights, hotels, transport)
- Employee commuting (car, train, public transport)
- Purchased goods and services (materials, office supplies, IT equipment)
- Waste disposal (landfill, recycling, incineration)
- Logistics and transportation of goods
- End-of-life product disposal (what happens to a product after a customer is done with it)
Since these emissions occur outside a company’s direct control, businesses must collaborate with suppliers and stakeholders to measure and reduce their impact.
How to Start Gathering Emissions Data
For businesses new to carbon measurement, the process can seem overwhelming. A practical first step is identifying which operations contribute to emissions and collecting data from:
- Utility bills for electricity, heating, and cooling (Scope 2)
- Fuel usage reports for company vehicles and equipment (Scope 1)
- Expense reports for business travel and employee commuting (Scope 3)
- Supplier reports and invoices to assess material and service-related emissions (Scope 3)
The Benefits of Using a Carbon Calculator
A carbon calculator, such as those offered by Green Circle Solutions, makes this process faster, easier, and more accurate. These tools:
- Automate data collection and analysis, reducing manual errors
- Provide clear insights into where emissions are highest
- Help track progress toward reduction goals
- Simplify reporting for compliance and stakeholders
By using an easy-to-use tool, businesses can focus on making real changes rather than getting lost in complicated calculations.
Engaging the Whole Company in Sustainability
Sustainability isn’t just for leadership teams—it requires company-wide engagement. Here’s how to get employees involved:
- Educate teams on what Scope 1, 2, and 3 emissions are and how their work contributes
- Incentivise green behaviours, such as carpooling or remote work to reduce commuting emissions
- Encourage suppliers to provide sustainability reports to improve transparency
- Appoint sustainability champions to drive initiatives across departments
- Talk to us about our Carbon Literacy Project approved training to get staff up to speed on sustainability
Understanding and managing carbon emissions is a crucial step toward sustainability. With the right tools, clear data, and employee engagement, businesses can make meaningful reductions that benefit both the environment and their bottom line.