One of the most, if not the most, important aspects of combating climate change is decarbonisation, or lowering overall levels of carbon dioxide (CO2) in the atmosphere. For businesses in all sectors, various forms of carbon emissions make up a carbon footprint. This is an indicator of that company’s total contribution to the greenhouse gas effect. While it’s the most widespread challenge companies face on sustainability, it’s also possible to monitor and manage through a carbon footprint calculator and good carbon emissions reporting practices.
Many companies found it difficult to determine the scope of the carbon emissions they should be reporting. Concerns about what emissions to report and whether their operations were the actual source of the emissions resulted in a call for guidance. Here enters the Greenhouse Gas (GHG) Protocol, a comprehensive, international framework developed to enable private and public sector entities to monitor and manage greenhouse gas emissions. The GHG Protocol has broken down the carbon output into scopes 1, 2, and 3 emissions. These are classed according to the original source of the carbon and its method of release.
In the following guide, take a look at what scope 1, 2, and 3 emissions are and how you can increase accountability for your emissions with a carbon footprint calculator.
What Are Scope 1, 2, and 3 Carbon Emissions?
According to the GHG Protocol, carbon emissions are to be classified under three scopes based on who is ultimately responsible for their release into the atmosphere. Under most carbon emissions reporting standards and legal frameworks, only scopes 1 and 2 must be reported, although there is growing support for expanding standards to include scope 3.
Scope 1 Emissions
Scope 1, or direct, emissions are those generated by company-owned or controlled resources used to provide services or create products or materials. Such emissions could include those resulting from combustion or chemical production, for example, carbon released when manufacturing concrete or asphalt.
In the event that CO2 emissions are created by the combustion of biomass, these shall be reported separately and not under scope 1. Also to be reported separately are gases such as CFCs or NOx that are not covered by the Kyoto Protocol.
Scope 2 Emissions
Scope 2, or indirect, emissions are those resulting from the generation of purchased energy. The most common form of scope 2 emissions is greenhouse gases like carbon released in the production and consumption of electricity. Other forms of energy associated with scope 2 emissions are heating and cooling, natural gas, and steam power.
Scope 3 Emissions
Scope 3 emissions are all those indirect emissions not included in scope 2 resulting from activities throughout a company’s value chain. These emissions are not controlled but are directly affected by the company’s operations.
In other words, this category includes all activities and purchases upstream and downstream of a company’s direct activities and purchases. Upstream refers to processes and activities that are required to collect materials to create the product. On the other side, downstream activities now use those materials to manufacture the final product.
Waste generation, transportation, and distribution are sources of upstream emissions, while investments, leased assets, sold products, and franchises are all examples of downstream emissions sources.
Calculating your Carbon Footprint
The importance of carbon emissions reporting and mitigation came into clearer focus in the 1990s, as the effects of decades of human activity on the atmosphere and the environment became better understood. In order to counter the impact of carbon on the atmosphere, an industry arose to provide carbon monitoring techniques, reporting methods, and a range of specialised resources.
One such resource is a carbon footprint calculator, such as Convene 2zero, which estimates a company’s total carbon output based on data collected across scope 1, 2, and 3 emissions. A wide selection of data points from across a company’s value chain is fed into a carbon calculator which will then generate an estimated carbon footprint as expressed in a clear set of numbers and figures. Referring to the GHG Protocol and using a carbon calculator offers a range of benefits, including:
- Improved transparency and investor and consumer confidence;
- Increased awareness of the effectiveness of carbon control efforts;
- Lower energy and resource costs;
- Compliance with the GHG Protocol and national and regional reporting requirements.
Carbon emissions reporting doesn’t stop with finding out the total carbon output. It’s then essential to discover the elements creating these emissions and adopt policies to mitigate the effects of these emissions on the environment.
Building Scope 1, 2, and 3 Emissions Reporting with Convene ESG and Convene 2zero
Monitoring scope 1, 2, and 3 carbon emissions is as crucial to your company’s sustainability as it is challenging. That’s why we are pleased to offer Convene ESG, an all-in-one ESG reporting platform, along with Convene 2zero, a comprehensive carbon footprint calculator. Together, these resources give users the means and the knowledge to understand and measure their carbon output for reporting purposes. They can also identify promising methods for reducing their greenhouse gas emissions.
If you’re interested in learning more about the advantages of building Convene 2zero into your carbon emissions reporting, visit here to see what we can offer.
