Understanding scope 1, 2, and 3 emissions
Understanding Your Full Carbon Footprint (Scope 1, 2, & 3)
When companies talk about “cutting carbon,” they’re often only addressing part of the problem. To truly achieve meaningful climate action, you must understand the Scope 1, 2, and 3 framework. This globally recognized structure doesn’t just measure emissions it assigns responsibility and clarifies where your environmental impact truly lies.
Think of it as looking beyond your immediate property line to the entire ecosystem your business relies on and influences.
The Three Scopes of Emissions
| Scope | Definition | Origin | Why It Matters |
| 1 | Direct Emissions | Sources owned or controlled by your company. | The “smoke out of your chimney”—fuel burned in company vehicles, boilers, or production processes. These are entirely your direct responsibility. |
| 2 | Indirect Emissions (Energy) | Emissions from purchased electricity, steam, heating, or cooling. | You don’t burn the fuel, but your demand drives energy production elsewhere. Switching to renewables is the primary lever here. |
| 3 | All Other Indirect Emissions | The full value chain—both upstream (suppliers) and downstream (customers/disposal). | This is where the BIGGEST footprint is found, often exceeding 70% of a company’s total emissions. It’s the true “big picture.” |
The Leadership Challenge: Tackling the Invisible Giants (Scope 3)
Here’s the critical gap: Most companies prioritize reporting Scope 1 and 2 because they are simpler to calculate and directly controlled. However, by focusing only on what’s easiest, they miss the vast majority of their climate impact lurking in Scope 3.
Real climate leadership means taking ownership of that upstream and downstream footprint. This requires strategic, transformative action:
- Engaging Suppliers: Working collaboratively to reduce emissions from purchased materials and services.
- Product Redesign: Creating products that are durable, repairable, and require less energy/materials to produce.
- Influencing Consumers: Helping customers use and dispose of products more sustainably.
If we limit our focus to the direct sources we control, we’re only moving pollution around, not eliminating it. Achieving Net Zero demands that businesses take comprehensive responsibility across their entire value chain.
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