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Many of our daily activities, such as using electricity, driving a car or disposing of waste, cause greenhouse gas emissions. Together, these emissions make up the carbon footprint of a home or business. To have the best chance of avoiding a 2°C rise in global temperatures, the average annual global carbon footprint needs to fall below 2 tons by 2050. The carbon footprint for businesses is analyzed in three scopes.
Scopes 1, 2 and 3 are mutually exclusive. Within a company, there is no double counting of emissions between scopes. For example, a company’s Scope 3 inventory does not include any emissions from Scope 1 and 2 inventories.
However, a company’s Scope 3 inventory will include Scope 1, 2 and 3 emissions from other companies.
To effectively take climate action, a company needs a comprehensive understanding of its impact. The three emission Scopes (and categories) provide companies with a systematic framework for organizing, understanding and reporting their emissions.
An organized and comprehensive GHG inventory that includes all three Scopes allows companies to identify their largest sources of emissions and focus their efforts. It also allows stakeholders, investors and policymakers to more easily compare companies’ carbon footprints.
The Greenhouse Gas Protocol (GHG Protocol) provides the internationally recognized standard for calculating Scope 1, 2 and 3 emissions. Scope 1, 2 and 3 emissions together form a corporate carbon footprint or corporate GHG emissions inventory.
The guidelines include:
ISO 14064 is another internationally recognized standard for corporate carbon accounting. Instead of breakdowns by scopes, it uses ‘direct’ and ‘indirect’ emission categories.
When it comes to setting emission reduction targets, the Science Based Targets initiative requires companies to include Scope 1, 2 and 3 emissions in long-term (net zero by 2050) targets. For shorter-term targets, Scopes 1 and 2 must be included, and Scope 3 emission sources are included if they contribute at least 40% of the company’s total carbon footprint.
Scope 1, 2 and 3 emissions should be calculated by experts in accordance with the standards set by the GRI (Global Reporting Initiative).
After calculating the carbon emission values of your business, you can develop and implement Carbon Offsetting projects in accordance with international standards to reduce these consumptions. The results will be directly reflected in your Sustainability Reports.
