We’ve all heard of greenhouse gas emissions, but have you heard of Scope 1, Scope 2, and Scope 3 emissions?
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Greenhouse gas emissions are divided into three categories for businesses and organizations Scope 1, Scope 2 and Scope 3. According to GHG Protocol, Scope 3 emissions account for an average of 75% of a company's total greenhouse gas emissions.?
Companies need to cut emissions across all three scopes to meet internationally agreed targets on global warming.
?? Scope 1: Direct Emissions from sources (on sight)
These are “direct” emissions – those that a company causes by operating the things that it owns or controls.
?? Scope 2: Indirect Emissions from Energy / Utilities
These are “indirect” emissions created by the production of the energy that an organization buys.
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?? Scope 3: Indirect Emissions from the Chain Supply or Service
These are indirect emissions – meaning those not produced by the company itself – but they differ from Scope 2 as they cover those produced by customers using the company’s products (downstream) or those produced by suppliers making products that the company uses (upstream).
No prizes for guessing which of the three scopes is the hardest to tackle – and it is often the most significant. Scope 3 emissions are nearly always the big one. Unlike Scope 1 and Scope 2, which are within a company's direct control, Scope 3 emissions involve numerous external factors, making them more complex to measure, manage, and reduce.”
Companies can typically easily measure their Scope 1 and 2 emissions and control them by switching to renewable energy or electric vehicles. However, Scope 3 emissions are under the control of suppliers, so they are affected by decisions made outside the company. Measuring Scope 3 emissions involves tracking activities across the entire business model – or value chain – from suppliers to end users.
VesselBot simplifies Scope 3 emissions reporting by streamlining data collection, automating data processing, and ensuring accuracy with primary data access. This eliminates manual effort and reduces errors, leading to faster and more reliable insights.
Additionally, VesselBot's advanced analytics and actionable recommendations empower companies to identify emissions reduction opportunities, optimize their logistics networks, and make informed decisions that benefit both the environment and their bottom line.
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