As climate change and environmental sustainability attract more and more attention, organisations and companies are using various tools and protocols to monitor and reduce carbon emissions. In this context, the GHG Protocol, or Greenhouse Gas Protocol, stands out as a specific carbon calculation and reporting standard.
However, this protocol has three different “scopes”: Scope 1, Scope 2 and Scope 3. In this article, we will examine what each scope represents, why carbon emissions are different, and the environmental impacts of these differences.
Contents
- GHG Protocol: What is the Protocol on Greenhouse Gas Emissions Reduction and Greenhouse Gas Impact?
- Direct Emissions: What are Scope 1 Emissions?
- Indirect Emissions: What are Scope 2 Emissions?
- What are Scope 3 Emissions?
- Why is it Important to Understand Scope 1, 2 and 3 Emissions?
GHG Protocol: What is the Protocol on Greenhouse Gas Emissions Reduction and Greenhouse Gas Impact?
The GHG Protocol on Mitigation of Greenhouse Gas Emissions and Greenhouse Gas Impacts is an international agreement and framework document on monitoring, reporting and mitigating greenhouse gas emissions. The GHG (Greenhouse Gas) Protocol was adopted in Kyoto in 1997 and entered force in 2005. The primary purpose of this protocol is to reduce greenhouse gas emissions worldwide and to bring the countries of the world together in the fight against climate change.
It especially targets industrialised countries committed to reducing greenhouse gas emissions. Carbon emissions are divided into three groups within the framework of this protocol. Greenhouse gas scope 1, scope 2, and scope 3 emissions are calculated separately.
The main components of the GHG Protocol are:
1. Targets and Commitments: The Protocol requires participating countries to set specific targets and commitments. These targets specify how much greenhouse gas emissions will be reduced in a given period.
2. National Monitoring and Reporting: Participating countries are obliged to monitor and report their greenhouse gas emissions. This requires them to report and monitor their emissions regularly.
3. Trading and Mechanisms: The Protocol promotes economic requirements such as emissions trading and clean development mechanisms. This offers financial incentives to support emission reduction efforts.
4. Implementation of the Protocol and Compliance: Countries that violate the Protocol may face a specific penal mechanism.
GHG Protocolprovides a basis for adopting more inclusive and up-to-date agreements on combating climate change from 2020. Within the framework of the Protocol, carbon emissions are assessed under three scopes.
This enables companies to understand their entire value chain emissions, make the most accurate greenhouse gas emission calculations and focus on reducing carbon emissions in the most efficient way.
Now let’s take a closer look at what Scope 1, Scope 2 and Scope 3 emissions are and understand them more clearly with examples:
Direct Emissions: What are Scope 1 Emissions?
Scope 1 carbon emissions are emissions under the direct control of an organisation. Greenhouse gas emissions from sources owned or controlled by a company.
For example, emissions from company buildings and vehicles, equipment or chemical processes directly related to the organisation’s activities are categorised as Scope 1 emissions.
As these emissions are directly linked to the organisation’s activities, they are considered to be under the organisation’s direct control. Renewable energy use and energy efficiency are important to reduce such emissions.
Indirect Emissions: What are Scope 2 Emissions?
Scope 2 carbon emissions are not under organisations’ direct control but depend on their activities. They are the emissions a company causes indirectly when producing the energy it purchases and uses.
These emissions result from energy purchased from external sources for electricity, heating or cooling. For example, the electricity that a company purchases from a local energy supplier to meet its electricity needs can lead to Scope 2 emissions.
Scope 2 emissions can be reduced by energy efficiency efforts or by purchasing electricity from renewable energy sources instead of fossil fuels.
What are Scope 3 Emissions?
Scope 3 carbon emissions represent indirect impacts of organisations and emissions at the end of the value chain.
All other indirect emissions occurring in the value chain that are not produced by a company itself in all processes from the production, transport and use of its products, and are not the result of activities arising from assets owned or controlled by it, fall within the scope of Scope 3 emissions.
For example, waste and emissions generated by a company’s consumers when using its products, business travel, employees’ journeys between home and work, and carbon emissions emitted in distribution and transport processes connected to suppliers and customers are assessed under Scope 3.
To reduce such emissions, the supply chain needs to be made sustainable, products need to be suitable for longer use and recycling strategies such as refilling need to be implemented.
Why is it Important to Understand Scope 1, 2 and 3 Emissions?
Understanding and reducing carbon emissions individually and corporately plays an important role in combating the global climate crisis. Companies that consider Scope 1, 2 and 3 emissions have the opportunity to realise their sustainability goals more effectively.
Strategies to reduce carbon emissions can provide long-term financial benefits for businesses as well as reduce environmental impacts. This is an essential step towards building a cleaner environment and a more sustainable future for future generations.
There is a large and complex problem of greenhouse gases, also known as carbon emissions. It urgently needs to be reduced in the fight against the global climate crisis. It is necessary to categorise it as Scopes 1, 2, and 3 within the scope of the GHG Protocol to calculate carbon emissions accurately and find the most effective solution by dividing the problem into parts.
In this way, a holistic strategy can be drawn with different action plans. In addition, by reporting on all three emission scopes, companies can see the big picture on carbon emissions and express their commitment to reduce their impact on the environment in a more concrete way.
The calculation of carbon emissions within the framework of Scope 1, Scope 2 and Scope 3 with the GHG Protocol enables an in-depth understanding of all relevant activities that make up the value chain of a company, such as operations, product life cycle, supply chain, stakeholder relations, as well as finding effective solutions.
