Understanding GHG emissions and Scopes 1, 2, and 3.

Greenhouse gas (GHG) emissions are critical to climate change discussions and environmental policy. Carbon dioxide (CO2), methane (CH4), and nitrous oxide (N2O) gases trap heat in the Earth's atmosphere, contributing to global warming and climate change. To effectively manage and reduce these emissions, it's essential to understand their sources and classifications. The Greenhouse Gas Protocol, a widely used international accounting tool, categorizes emissions into three scopes: Scope 1, Scope 2, and Scope 3. This framework helps organizations comprehensively track and manage their GHG emissions across upstream and downstream supply chains.

Scope 1: Direct Emissions

Scope 1 emissions are direct GHG emissions emitted from resources owned or controlled by the organization. These emissions arise from activities such as:

• Energy use: from burning fossil fuels in company-owned or controlled boilers, furnaces, vehicles, and other equipment.
• Process Emissions: These are emissions released during industrial manufacturing processes, such as chemical reactions.
• Equipment leaks: such as refrigerants from cooling systems or methane from gas pipelines, cause fugitive emissions.

Examples include emissions from company-owned vehicles, on-site energy generation, and industrial processes.

Scope 2 emissions are emissions from purchased electricity, steam, heat, or cooling. These emissions are associated with generating the energy the organization consumes but occur at the facility that produces the power, not the company that uses it.

Examples include emissions from electricity purchased from the grid and used to power offices, factories, and other facilities.

Scope 3: Indirect Emissions

Scope 3 emissions are all other indirect emissions emitted by all the processes in the reporting company's value chain, both upstream and downstream. It is the most challenging category to measure, including emissions from all your upstream and downstream suppliers.

Upstream activities include emissions from:

• Purchased goods and services.
• Capital goods.
• Fuel.
• Energy use activities (not included in Scopes 1 and 2).
• Transportation.
• Waste generated in operations.
• Business travel. Employee commuting.
• Leased assets.

Downstream activities include emissions from:

• Transportation and distribution.
• Processing of sold products.
• Use of sold products.
• End-of-life treatment of sold products.
• Downstream leased assets.
• Franchises.
• Investments.

Every business, including consulting firms, must monitor its GHG emissions regardless of its industry sector or whether it is entirely remote.

Addressing Scope 1, 2, and 3 emissions requires coordinated efforts at individual and organizational levels. By adopting sustainable practices, investing in renewable energy, and engaging in responsible consumption, we can all help reduce our greenhouse gas emissions and mitigate the impacts of climate change. Businesses have a critical role to play through operational improvements, supply chain management, and supporting sustainable initiatives, leading the way toward a greener future.