Scope 1, 2 and 3 Emissions
Scope 1 Emissions: Direct GHG Sources
Direct GHG emissions originate from sources that the company owns or controls. These types of emissions are associated with fuel combustion, industrial processes, and leakages as per GHG corporate protocols, emission sources could be of 4 types based on emission sources. Generally, a prime source of emissions for the manufacturing sectors is Scope 1.
- Stationary Combustion – Boilers, Furnace
- Mobile Combustion – Car, Bus
- Fugitive Emissions – Air Conditioner, Refrigerator
- Process Emissions – Emission of CO2 during linearization
Scope 2 Emissions: Indirect GHG Sources from Purchased Energy
Scope 2 emissions are indirect emissions emerging from purchased energy (electricity, heat, steam, and cooling). The organization generally depends on electricity for the various operational activities on the premises. Scope 2 emissions are linked to the energy that an organization purchases and uses, but does not produce on-site. Two categorization approaches exist regarding the sources of electricity: Location-based electricity and market-based electricity. The largest portion of the GHG emissions for the Corporate offices is scope 2.
Location-based Approach
An organization cannot be aware of the emission factor of the electricity it consumes if it purchases heat, steam, or electricity from a local grid. Location-based emissions calculate the GHG emissions associated with purchased electricity based on the average emissions intensity of the electricity grid in a specific geographical location. It relies on publicly available grid emission factors provided by regulatory bodies or energy market operators. If the consumed electricity source is not specified then it should have to be reported with a location-based approach.
Market-based Approach
Under the market-based approach, companies have the opportunity to select their specific energy procurement activities, such as purchasing renewable energy certificates(RECs), entering into power purchase agreements (PPAs) with renewable energy generators, or participating in green energy programs offered by utilities. The market-based approach enables companies to report emissions based on the emissions factors associated with their specific energy procurement.
Scope 3 Emissions: Other Indirect GHG Sources
Emissions falling under scope 3 are indirect emissions that happen all along the value chain and are not under the organization’s control. They consist of both the emissions upstream and downstream. Monitoring these emissions is challenging but specialized experts help companies measure and manage emissions across all scopes, ensuring comprehensive tracking. Value chain emission related to cradle-to-gate is considered as Upstream Scope 3 emissions and gate to grave is considered as Downstream Scope 3 emissions.