Understanding GHG Scopes 1-2-3
Getting started with measuring your business emissions can seem daunting at first. But with a general understanding of the most widely accepted and used standard for emissions inventory measurement and management, you will find this enlightening process more inviting…and possibly fun!
The GHG Protocol Standard
The Greenhouse Gas Protocol (GHG Protocol) is considered the global standard when it comes to identifying and managing greenhouse gas inventories, and it’s the backbone of our MORE Framework and Offset Climate Certification. Following this standard ensures consistency–internally for year-over-year goal setting, and externally should you start comparing emissions performance with peers or others.
The GHG Protocol standard categorizes emissions into three distinct scopes:
Scope 1 (direct)
Emissions from operating equipment that you own or lease and that burn fuel, like a fleet of vehicles, forklifts or generators. These are considered direct because you choose which type(s) of equipment to use, which fuel(s) to burn in order to operate them and how frequently you operate them.
Scope 2 (indirect)
Emissions from electricity that you purchase from the grid. These are considered indirect because while you can scale back how much electricity you use, you typically do not have control over the energy mix that makes and delivers the electricity to you (coal, natural gas, renewables etc.)
Scope 3 (indirect)
Emissions from everything else that makes your business function. Scope 3 is broken down into 15 categories, and your type of business will define which categories are relevant to you. Similar to Scope 2, these are considered indirect emissions since you typically don’t have direct control over how these categories are delivered to you through third parties.
In general, it’s not uncommon for a business to have 80% or more of its emissions come from Scope 3 activities.
Scope 3 Upstream:
1. Purchased goods & services
2. Capital goods
3. Fuel & energy related activities
4. Upstream transportation & distribution
5. Waste from operations
6. Business travel
7. Employee commuting
8. Leased assets
Scope 3 Downstream:
9. Downstream transportation & distribution
10. Processing of sold products
11. Use of sold products
12. End of life treatment of sold products
13. Downstream leased assets
14. Franchises
15. Investments
An easy way to distinguish between upstream and downstream activities: upstream are things that happen up to the point you deliver your products or services, and downstream are things that happen after the point you deliver your products or services, and things that are not directly related to delivering your own products or services (like investments you make).
The GHG Protocol visual…
Some more about GHG Protocol
GHG Protocol establishes comprehensive global standardized frameworks to measure and manage greenhouse gas (GHG) emissions from private and public sector operations, value chains and mitigation actions.
Through a 20+ year partnership between World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD), GHG Protocol works with governments, industry associations, NGOs, businesses and other organizations.
GHG Protocol is funded by a growing mix of global industry leaders like Microsoft and Volkswagen, nonprofits like the Hewlett Foundation and The John D & Catherine T MacArthur Foundation, and governmental organizations like the United States EPA and UK’s DEFRA.