The Three Scopes of Emissions: What They Mean for Your Business

Greenhouse gas emissions. We’ve all heard of them and, more than ever, we’re seeing the impact that they have on our planet. In recent years, greenhouse gases have become a far more significant concern for businesses. There are more government targets and consumers are increasingly conscious of the impact that their purchases have on the environment.

Today, sustainability and profitability go hand in hand, so it’s important for business leaders to understand what changes they can make to improve things for both the planet and their pockets. To help companies assess their impact on the environment and take steps to reduce their emissions, the concept of "Scope Emissions" was introduced. So let’s explore the three scopes of emissions and what they mean for your business.

Scope 1 Emissions

Scope 1 emissions are direct emissions that come from sources that are owned or controlled by a company. This includes things like on-site fuel combustion, such as boilers and vehicles, as well as emissions from industrial processes. For example, if your business operates a fleet of vehicles, the emissions from those vehicles would be considered Scope 1 emissions. Or in the case of Invisible Systems, the emissions we create when we’re putting together IoT sensors in our lab.

Scope 2 Emissions

Scope 2 emissions are indirect emissions from the generation of electricity, heat, or steam that a company consumes. These emissions are generated by power plants or other energy-producing facilities that provide energy to your business. For example, if your business uses electricity to power its operations, the emissions generated by the power plants supplying that electricity would be considered Scope 2 emissions. In order to reduce your scope 2 emissions, you should look to consider the green credentials of your chosen energy supplier – is there a better option?

Scope 3 Emissions

Scope 3 emissions are all other indirect emissions that are not included in Scope 2. These include emissions from the entire supply chain, such as the production, transportation, and disposal of goods. For example, if your business sources raw materials from suppliers, the emissions generated by those suppliers would be considered Scope 3 emissions.

The Importance of Understanding Scope Emissions

Understanding the different scopes of emissions is important for several reasons. First, it allows companies to determine the full extent of their carbon footprint and identify the areas where they can have the biggest impact. Second, it helps companies prioritise their sustainability efforts and focus on the areas where they can make the most difference. Finally, understanding the different scopes of emissions can help companies set more ambitious and achievable sustainability goals, as well as demonstrate their commitment to sustainability to customers, stakeholders, and the public.

The I-System can be integrated into your business and collect data from across all 3 scopes. The data we collect can be analysed and utilised to make smarter decisions for a healthier business across the board. Find out more about how businesses globally have reduced emissions across all three scopes with the help of IoT monitoring solutions from Invisible Systems. Book a consultation with an expert member of our team today!