Scope 1 emissions from companies

Scopes: How are Scope 1, 2 and 3 emissions defined? 

The so-called "scopes" refer to categories of greenhouse gas emissions caused by an organization or a company. This categorization helps companies to record their_{carbon footprint}(also known as corporate carbon footprint) and implement measures to reduce it.

The scopes were introduced in 2001 with the Greenhouse Gas Protocol (GHG) to create an international standard for emissions reporting. Prior to the introduction of the GHG Protocol, there was no generally accepted method by which companies could measure their contribution to climate change. The clear division into Scope 1, Scope 2 and Scope 3 emissions provides companies with a structured and comparable method for analyzing and reporting on their_{carbon footprint}. In addition, the GHG Protocol and the scopes are the first uniform standard that is recognized by both companies and environmental organizations. 

What are Scope 1 emissions?

Scope 1 emissions refer to all direct emissions from sources owned or controlled by a company. These include, for example:

• Combustion systems: Emissions from heating systems that a company uses to operate its buildings and facilities. This also includes smaller emission sources such as emergency generators.
• Company vehicles: Exhaust fumes from vehicles owned or controlled by the company.
• Process emissions: Emissions that originate from industrial processes, such as cement production or chemical reactions in which _CO₂ is released.
• Volatile gases (F-gases) from air conditioning systems: Coolants from air conditioning systems in companies can also contribute to Scope 1 emissions in the event of leaks, as many of these gases have a very high greenhouse gas potential.
  

The difference: Scope 1 emissions compared to Scope 2 and 3

While Scope 1 emissions relate to direct emissions from the company's own and controlled resources, Scope 2 and 3 emissions include emissions generated within the company's value chain .

• ‍Scope 2 emissions: Compared to Scope 1 emissions, Scope 2 emissions include indirect emissions resulting from the generation of purchased or sourced energy . This includes the electricity, district cooling, district heating or steam that a company purchases for its operating activities. Even if a company does not generate these emissions directly, they are part of the energy value chain. This makes them relevant for recording the_{carbon footprint}.
• Scope 3 emissions: Scope 3 includes all other indirect emissionswhich are upstream and downstream value chain of a company. These can be far-reaching and include emissions from the following processes, among others:
  
  • Production of purchased materials and services
  • Use of purchased products and services
  • Business trips
  • Employee commuting
  • Waste disposal

A key difference between Scope 1 emissions compared to Scope 2 and 3 is the company's control over these emissions. Scope 1 emissions can be influenced directly, as the amount consumed and the heating medium can be chosen by the company itself. In the case of Scope 2 emissions, the company has a certain amount of influence by selecting its energy suppliers and investing in energy efficiency. Scope 3 emissions are often more complex to handle, as they require a more in-depth consideration of the entire value chain and often have to be reduced in collaboration with suppliers and partners.

How do Scope 1 emissions vary by business sector?

Different business models result in a variance in direct emissions that fall under Scope 1 emissions. For most companies, a strategy to reduce these operational emissions means switching to

• more energy-efficient offices
• the maintenance of heating and cooling systems
• or the switch from fossil fuels to an electric vehicle fleet.

However, there are also companies whose majority of emissions are in Scope 1. In the manufacturing sector in particular, such as in the construction industry or in materials processing, where steel production plays a role, most emissions are generated directly at the production site. Here, the reduction of Scope 1 emissions requires innovative approaches, the use of new technologies and a strong commitment to alternative business practices.

The importance of Scope 1 emissions: Why your company should pay attention

A clear overview of Scope 1 emissions is not only a sign of responsible action, but also important in order to comply with environmental standards and laws. This includes, for example, ISO 14064 or the GHG Protocol. In addition, the Corporate Sustainability Reporting Directive (CSRD) will make_{carbon accounting}(and thus the recording of Scope 1 emissions) mandatory from 2025 with retroactive effect from the 2024 financial year.

Furthermore, the correct management of Scope 1, 2 and 3 emissions helps companies to achieve their climate targets by working to reduce emissions. As a result, companies benefit from

• ‍Cost savings,
• Risk mitigation
• and strengthening its market position.

This is because internal and external stakeholders are also increasingly demanding action from companies.

How are Scope 1 emissions measured?

Scope 1 emissions are usually measured in accordance with recognized standards such as the Greenhouse Gas Protocol or ISO 14064. A corresponding software solution is often used. Such software tools use emission factors and conversion formulas to quantify the amount of CO₂ _equivalent emitted - based on the type and quantity of fuel consumed.

The best measures to reduce Scope 1 emissions: Practical tips for your company

Reducing Scope 1 emissions is an essential step for companies to achieve their sustainability goals and make a positive contribution to climate protection. These are the most effective measures to minimize direct Scope 1 emissions:

• Improve energy efficiency: Improve the energy efficiency of operating facilities and office buildings. This can be achieved by modernizing heating and cooling systems and insulating buildings.
• Renewable energies: Rely on renewable energy sources such as solar energy, wind energy or biomass to replace conventional fossil fuels and significantly reduce _CO₂ emissions.
• Company vehicles: Replace company cars with electric vehicles or hybrid models to reduce greenhouse gas emissions.
• Process optimization: Optimize operational processes to minimize fuel consumption. For example, heat recovery systems or more efficient production processes can be used.
• Training for employees: Train your employees to raise awareness of energy consumption and emissions.
• Regular monitoring and reporting: Implement a comprehensive emissions management system to accurately collect and analyze data on emissions. This promotes continuous improvement and helps to set and achieve targets.

All currently unavoidable emissions can be offset by supporting global climate protection projects through _{CO2 compensation}.

Efficient solution: software for measuring Scope 1 emissions

Specialized software solutions are available for recording, analysing and managing Scope 1 emissions as well as Scope 2 and 3. These help you to carry out an automated and centralized_{CO2 balance}._{CO2 hotspots} are identified and it is possible to implement and measure reduction measures at the same time. These software solutions also make it easier to comply with reporting standards such as CSRD or ISO 14064.

Planted's ESG management platform enables your company to map its entire_{CO2 management} on one platform. Starting with the_{CO2 balance} through analysis and decarbonization to the CSRD report. Scopes are recorded intuitively within the software, based on the GHG Protocol and certified by TÜV Rheinland. AI features facilitate the entire process.

Would you like to get to know our software solution without obligation? Book a free demo now.