Decarbonization

Scope 1, 2, and 3 Emissions – A Breakdown

Scope 1 – Direct Emissions

Scope 1 emissions originate from sources that an organization owns or directly controls. These emissions are the most straightforward to measure and manage, as they result from on-site fuel combustion, company-owned assets, and industrial processes

• Fuel combustion – Emissions from boilers, furnaces, and generators operating on fossil fuels
• Company vehicles – Emissions from fleet operations, including diesel, petrol, and hybrid vehicles
• Industrial processes – Direct emissions from chemical reactions in manufacturing, such as cement production and steelmaking
• Fugitive emissions – Leaks from refrigeration systems, air conditioning units, and other equipment using greenhouse gases

2 Scope 2 – Indirect Emissions from Purchased Energy

Scope 2 emissions arise from electricity, steam, heating, or cooling purchased by an organization. These emissions are generated at the source of production but are attributed to the end-user since the organization consumes the energy for its operations

• Electricity consumption – Emissions from grid electricity use, varying based on the energy mix of the utility provider
• District heating and cooling – Emissions from centralized heating or cooling systems supplying multiple buildings
• Purchased steam – Emissions from externally sourced steam used in industrial processes

Organizations can reduce Scope 2 emissions by transitioning to renewable energy sources, improving energy efficiency, and participating in green power purchasing programs

3 Scope 3 – Indirect Emissions Across the Value Chain

Scope 3 emissions include all indirect emissions that occur both upstream and downstream in an organization’s value chain. These emissions often represent the largest share of a company’s carbon footprint and are the most complex to measure and manage

Scope 3 emissions are categorized into 15 reporting areas, including:

• Purchased goods and services – Emissions from raw materials, packaging, and supply chain activities
• Capital goods – Emissions from manufacturing and transportation of equipment, machinery, and infrastructure
• Fuel and energy-related activities – Emissions from energy production beyond Scope 1 and 2
• Transportation and distribution – Logistics-related emissions from supply chain operations
• Waste disposal – Emissions from landfill, recycling, and waste treatment processes
• Business travel – Emissions from flights, rail travel, and car rentals for corporate purposes
• Employee commuting – Emissions from daily transportation of employees to and from work
• Leased assets – Emissions from assets rented or leased by the company
• Investments – Financed emissions from banking, lending, and investment activities
• Use of sold products – Emissions from the operation and lifecycle of products sold to customers
• End-of-life treatment of sold products – Emissions from disposal, recycling, and waste management of sold products

Scope 3 emissions are critical for achieving true decarbonization. Businesses that address these emissions gain a competitive advantage by improving supply chain sustainability, enhancing investor confidence, and meeting customer expectations for responsible operations

Industries Benefiting from Scope 1, 2, and 3 Emissions Management

• Corporates and industrial sectors – Optimizing operations and transitioning to low-carbon business models
• Financial institutions – Addressing financed emissions and aligning with climate-aligned investment strategies
• Retail and consumer goods – Enhancing supply chain sustainability and meeting customer demand for eco-friendly products
• Transportation and logistics – Reducing carbon footprint through fleet electrification and efficiency improvements

Why Choose Clenergize for Decarbonization and Emissions Management

• Expertise in Net Zero and Carbon Neutrality – Proven track record in helping businesses achieve sustainability goals
• Holistic Scope 1, 2, and 3 assessment methodologies – Covering all aspects of emissions reduction and climate risk management
• Global regulatory compliance support – Ensuring businesses align with CDP, TCFD, SBTi, and ESG reporting frameworks
• Innovative technology-driven solutions – Providing real-time data insights for emissions tracking and reduction

Take Action with Clenergize

Managing Scope 1, 2, and 3 emissions is essential for achieving corporate decarbonization goals and maintaining compliance with global sustainability regulations. Clenergize helps businesses develop robust emissions inventories, implement targeted reduction strategies, and enhance transparency in carbon reporting

Ready to advance your sustainability strategy? Contact Clenergize today for expert guidance on emissions management and Net Zero transformation