Scope 1, 2, and 3 Emissions
Scope 1, 2, and 3 emissions are categories of greenhouse gases released across the value chain. The purpose of distinguishing between these scopes is to help companies prioritize and take action to reduce their emissions. These categories were established by the Greenhouse Gas Protocol, a non-governmental organization that develops tools and guidelines to measure and reduce emissions accurately.
The guidance encourages businesses to focus on reducing Scope 1, 2, and 3 emissions in that order, based on the level of control they have over each.
Scope 1 (Direct)
Emissions produced directly by a company in the course of providing its goods or services. Companies have the most control over these emissions. Examples include emissions from natural or industrial chemical reactions, or from burning fossil fuels for machinery, heating, or transportation.
Farming example: Emissions from diesel or gasoline used in farm production.
Scope 2 (Energy Usage)
Emissions from the purchase of electricity, heat, or other forms of energy. These are not emitted at the company’s production or service site but occur elsewhere as a result of the company’s demand for energy. Companies have indirect control over these emissions by reducing consumption or choosing suppliers that use renewable energy sources.
Farming example: Emissions from electricity used for water pumps, heaters, or lighting in farm or ranch machine sheds and shops.
Scope 3 (Supply Chains)
Emissions from the production of goods or services purchased by the company, as well as from the production or end-of-life management of goods or services sold by the company. Scope 3 emissions are essentially the Scope 1 emissions of other companies in the supply chain, either upstream or downstream.
Scope 3 emissions can represent the largest share of an organization’s total carbon footprint, but they are often the most difficult to measure. Companies have less direct control over these emissions and must collaborate with suppliers or customers to address them. They are included in a company’s emissions profile to encourage cooperation across the supply chain, with the expectation that larger or more profitable companies may provide incentives for smaller partners to reduce their emissions.
Examples include the total emissions from producing steel tubing purchased by a bicycle manufacturer or the emissions generated by electricity consumed when using a blender sold by an appliance manufacturer.
Farming example: Emissions from producing fertilizer and other crop inputs (pesticides, herbicides, etc.). By adopting practices such as no-till farming and adding cover crops, farmers can reduce their reliance on crop inputs and the number of field passes – both of which also lower fuel use.
Companies measure emissions in 3 scopes (direct, energy usage, and supply chain). While many companies are reducing the emissions they can, offsets offer a chance for scalable reductions.
Agoro Carbon makes agriculture part of the solution with our high-quality soil carbon credits that help companies achieve net-zero targets.
