What You Need to Know About Scope 1 Carbon Emission When Monitoring Carbon Emissions For Your Organisation

81% of carbon emissions are responsible for the overall greenhouse gases (GHG) globally.

When businesses want to make their first step in achieving net-zero status, they need to measure and report the status of their current carbon emissions. According to the GHG Protocol corporate standard, a company’s GHG emissions are classified into three scopes (Scope 1, 2, and 3 emissions). 

For certain identified organisations Scope 1 and 2 emissions must be reported as both are specified under the NGER legislation. 

For all other organisations measuring and reporting emissions is currently voluntary. Meanwhile, Scope 3 is voluntary for all organisations and is the most complex to track. 

Over the next 3 newsletters, we will look at an organisation's emissions captured in each scope's reporting,  and how your business can measure and reduce these emissions. 

In this newsletter, we will be discussing Scope 1 emissions and how to get help with monitoring. 

What is Scope 1 Emissions?

Scope 1 includes greenhouse gas emissions from sources that are owned or controlled by an organisation and are directly released from their site or vehicles. Examples of  these emissions sources include boilers, electricity generators,  fugitive gas emissions, fleet vehicles including cars, motorcycles, vans, lorries and site based vehicles.

Scope 1 emissions usually make up 10% of your organisation's overall emissions and are further categorised. 

Scope 1 Emissions are divided into four areas:

1. Stationary Combustion

Fuels and heating sources include boilers for heating buildings, gas furnaces, gas-fired heat, and diesel power plants. The most common fuels are natural gas (LNG), liquified petroleum gas (LPG), gas oil, diesel, and kerosene. All fuels including coal that produce greenhouse gas emissions are included in the Scope 1 calculations. The CO2 emitted is usually accounted for in Scope 1 although some companies do account for it as they use it for power or heat generation.

1. Mobile Combustion

All vehicles owned or leased by an organisation that burn fuels producing greenhouse gases fall into Scope 1, including cars, vans, trucks and motorcycles powered by petrol, liquefied natural gas (LNG), liquid petroleum gas (LPG), biodiesel, bioethanol and diesel engines used for transportation. Full electric vehicles (EVs) and plug-in hybrids (PHEVs) allow some of an organisation’s vehicle calculations to fall into Scope 2 instead.  

In addition, vehicles fully owned or leased (ownership passing to the company) are accounted for in Scope 1. There are also cases where vehicles that are used under a hire agreement or operating lease are accounted for in Scope 3.

1. Fugitive Emissions

Fugitive emissions are greenhouse gas leaks from refrigeration and air-conditioning units. There are several types of refrigerant gases that are extremely potent greenhouse gases, some of which are thousands of times more damaging than carbon dioxide (CO2). While there are large unquoted companies and large LLPs who aren’t required to report these emissions, they are encouraged to still do so. 

1. Process Emissions

These are GHG emissions released into the atmosphere during an industrial manufacturing process. For example, the manufacturing of cement, steel, tires and chemicals like ammonia.

How do you know if your business is creating Scope 1 Emissions? 

Scope 1 emissions apply to businesses with a physical footprint (e.g. brick-and-mortar stores, factories, office buildings, company-owned vehicles and equipment). For those with an especially large physical footprint, Scope 1 emissions will make a greater portion of your carbon footprint.

What are other examples of Scope 1 Emissions commonly categorised in this scope that shouldn’t be? 

A quick reminder, only fuel your business burns within your organisation are in Scope 1. 

Some examples include equipment or assists that you don’t own or control but support your organisation’s activities such as company car services, air conditioning units serviced by your building’s owner, or contractor’s owned and used fuel-powered tools. 

As well, purchased energy consumed on-site but produced somewhere else will fall in Scope 2 emissions such as heat and cooling (e.g. electricity, chilled water, and steam). 

Where should your organisation start with monitoring Scope 1 Emissions?

At Carbon Offset Advisory, we help businesses in a wide variety of niches including: Food franchise groups, parcel and logistics, motor vehicle sales, hire vehicles, hotels, fleet infrastructure, retail chains, and online retail.

Regardless of niche and company size, COA can assist in providing a tailored approach to help you measure your Scope 1 emissions. In addition, we can help you zoom out and provide a long term plan to help your business become net-zero with our simplified 5 step process.

Our 5 step process entails:

• Commit
• Measure 
• Reduce & Offset
• Report
• Leverage Opportunity 

Comment below and let’s schedule a call. 

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