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Environmental responsibility and sustainability are becoming increasingly important for both businesses and individuals. As the effects of climate change continue to rise, a larger emphasis is being placed on reducing greenhouse gas emissions. Emissions management, specifically within businesses, is incredibly important for a more sustainable future. Scope 1, 2, and 3 emissions play a crucial role in understanding and addressing our environmental impacts. Let’s dive deeper into greenhouse gas emissions and explore some examples of Scopes 1, 2, and 3.
When certain gases are released into the air, they trap heat and contribute to climate change. These are known as Greenhouse Gas emissions, and managing them is part of climate accounting. There are six main types of Greenhouse Gases, like methane and industrial gases, and they each have different effects on the climate. To simplify, they're all compared to carbon dioxide (CO2), so people often just refer to them all as "carbon" emissions.
Greenhouse Gases are broken down into three different categories, known as Scope 1, 2, and 3 emissions. The term “scope” refers to who is mainly responsible for creating climate pollution.
Scope 1 refers to the greenhouse gas emissions that your company is directly responsible for. These are typically the easiest emissions to measure and manage.
Here are some examples of Scope 1: Emissions from the fuel burned in company vehicles, leaks from company air conditioning, and the gas used to heat your office.
Scope 2 refers to greenhouse gas emissions that are indirectly produced by your company. There are many types of Scope 2-related emissions, but for the majority of people, these are the emissions produced by the electricity you consume. While these emissions occur off-site, they are still a result of your company's consumption habits.
Here are some examples of Scope 2: The electricity used in lighting or manufacturing that was purchased from an electric utility.
Scope 3 covers all the other indirect emissions from your company's entire supply chain. These emissions occur as a result of your company's activities but are not directly owned or controlled by your organization.
Here are a few examples of Scope 3: Business travel, employee commuting, downstream use of products, shipping of goods to/from a company, and investments.
As a business, you should understand and address your scope emissions for several reasons. Businesses contribute significantly to greenhouse gas emissions, ultimately playing a role in accelerating climate change. Governments are starting to implement standards for carbon emissions, and businesses could face legal consequences if they fail to adhere to these regulations. Businesses can also save money by reducing their emissions, improving energy efficiency, and adopting sustainable practices. Additionally, consumers lean towards brands that are environmentally conscious and actively care about their impact on the planet. Managing your scope emissions helps your company to stand out in a competitive market. Overall, actively calculating and reducing your emissions not only drives your business toward long-term success, it is also crucial for environmental sustainability.
With Aclymate, your company can measure, track, offset, reduce, and report your emissions with ease. Click here to learn more about our climate solutions for small-to-midsize businesses.
In summary, smaller businesses play a crucial role in confronting climate change. Understanding and addressing your company’s Scope 1, 2, and 3 emissions is essential for environmental responsibility. You are accountable for your company's emissions, whether they stem directly from your business operations or indirectly from your supply chain. By managing and reducing these emissions, businesses can not only mitigate climate change but also save costs and stand out in a competitive market.