Carbon Footprint, what Scopes ?

Conducting and understanding a company’s carbon footprint is essential for effectively combating climate change. In this article, discover the scopes of the carbon footprint — Scope 1, 2, and 3 — which categorize the greenhouse gas emissions related to an organization’s activities. By identifying and understanding their significance, companies can adopt targeted strategies to minimize their environmental impact while adhering to international standards.

Scope 1, 2, 3: what are the Carbon Footprint Scopes?

What is a scope?

In the context of a carbon assessment, a scope designates a perimeter of greenhouse gas emissions. It allows emissions to be classified according to their origin and the level of control by the company. Thus, three different scopes are distinguished:
– Scope 1: direct emissions (e.g., on-site fuel combustion).
– Scope 2: indirect emissions related to purchased energy (e.g., electricity).
– Scope 3: other indirect emissions throughout the value chain.

This classification, defined by the GHG Protocol, is essential for structuring carbon analysis and guiding organizations’ emission reduction actions.

Scope 1

Scope 1 emissions refer to direct emissions generated by an organization’s internal activities. These include the combustion of fuels in company vehicles or fixed installations, as well as fugitive emissions from, for example, refrigeration or the use of industrial gases. Managing Scope 1 emissions is crucial as they are often directly controllable by the company, offering a direct opportunity to reduce overall environmental impact.

Scope 2

Scope 2 emissions pertain to indirect emissions related to the purchase of electricity, heat, or steam. These emissions are produced outside the organization but result from its energy consumption. Accounting for these emissions allows companies to measure the environmental impact of their purchased energy consumption.

Scope 2 emissions include the electricity consumed by offices, factories, and other facilities. Reducing Scope 2 emissions can often be achieved by opting for renewable and cleaner energy sources or by improving the energy efficiency of buildings and equipment.

Scope 3

What is Scope 3?

Scope 3 emissions encompass indirect emissions not covered by Scope 2, occurring within the company’s value chain, including both upstream and downstream activities. This includes emissions related to the extraction and production of raw materials, the transport of purchased goods, business travel, the end-of-life treatment of sold products, and employee commuting. These emissions are often the most difficult to quantify and control, but they represent a significant portion of the overall carbon footprint of many organizations.

What are the 15 Scope 3 categories according to the GHG Protocol?

The GHG Protocol identifies 15 Scope 3 emission categories. These different categories help companies comprehensively structure their indirect emissions analysis. These categories cover the entire life cycle of products and services, both upstream and downstream of the activity.

Upstream categories:
-Purchases of goods and services
-Capital goods
-Fuel and energy activities (not included in Scopes 1 and 2)
-Upstream transportation and distribution
-Waste generated by operations
-Business travel
-Employee commuting
-Upstream leased assets

Downstream categories:
-Downstream transportation and distribution
-End-of-life treatment of sold products
-Use of sold products
-Downstream leased assets
-Franchises
-Investments
-Other relevant indirect sources

Not every company is affected by all of these categories. However, it is advisable to assess the relevance of each category based on the sector of activity, the value chain, and the business model. This classification helps identify areas with high carbon impact and prioritize reduction actions. It also provides an essential basis for structuring environmental reporting in accordance with recognized international standards.

Scope 3: How to measure it effectively?

Scope 3 covers all indirect emissions that do not fall under Scope 1 or Scope 2, but which occur throughout a company’s value chain, both upstream and downstream. It includes, in particular, the purchase of goods and services, business travel, the transportation of goods, the use of products sold, and their end-of-life. In most cases, Scope 3 represents the largest portion of an organization’s carbon footprint.

Effectively measuring these emissions is challenging because they are dispersed, complex, and often beyond the company’s direct control. To achieve this, it is possible to:
– Identify relevant categories: The GHG Protocol proposes 15 standard Scope 3 categories. It is necessary to determine which ones are significant for the organization.
– Collect reliable data: When possible, use primary data provided by suppliers (e.g., exact quantities, distances traveled, modes of transportation).
– Use secondary data: In the absence of specific data, emission databases (such as Base Carbone in France) allow the application of average emission factors.
– Prioritize emission sources: Focus first on the most emitting or strategic sources.
– Rely on appropriate tools: Carbon assessment software such as D-Carbonize facilitates the collection, analysis, and consolidation of Scope 3 data.

Finally, effective measurement of Scope 3 requires close collaboration with value chain partners. Thus, Scope 3 is a real lever for engaging suppliers, service providers, and customers in a comprehensive low-carbon strategy.

How to define your reporting scope?

Defining the reporting scope is one of the first steps in creating a reliable and relevant carbon footprint. This involves determining which entities, activities, and emission sources will be considered in the analysis, in accordance with the organization’s objectives and international standards such as the GHG Protocol.

First, the organizational scope must be defined, which delineates the structures included in the footprint. Depending on whether the company chooses a financial, operational, or shared control approach, certain subsidiaries or sites may be included or excluded from the scope of analysis.
Next comes the operational scope, which specifies the emission sources to be accounted for within the selected entities. All emission sources associated with Scopes 1, 2, and 3 must be identified, depending on the degree of control exercised over the activities.

Therefore, it is recommended to:
– Map entities and activity flows
Identify areas with high potential impact
– Take into account regulatory requirements and stakeholder expectations

A good reporting scope ensures the consistency, transparency, and comparability of the carbon footprint. It must be documented and justified to facilitate environmental communication and progress monitoring over time.

What is the organizational scope?

The organizational scope defines the legal or operational entities included in a company’s carbon footprint. It involves determining which subsidiaries, sites, or structures are included in the emissions analysis. This scope is essential for establishing the organization’s limits of responsibility regarding climate impact.

It can be defined using several approaches:
– Financial control: only majority-owned entities are included.
– Operational control: entities whose day-to-day management is included.
– Shared control: emissions are distributed according to ownership or influence.

This definition clarifies who is responsible for what and ensures consistency in emissions monitoring. A clear definition of the organizational scope ensures relevant carbon reporting, compliant with the requirements of standards such as the GHG Protocol.

What is the operational scope?

The operational scope defines the activities and emission sources that the organization chooses to include in its carbon footprint, based on the level of control it exercises. Two approaches are possible:

Operational control approach: the company accounts for the emissions of the activities it controls on a daily basis, even without owning them.

Financial control approach: only entities in which the company holds the majority of the capital are taken into account.

This choice directly impacts the carbon footprint results and the emissions reduction strategy. It allows the analysis to be adapted to the organization’s realities and accurately reflects its environmental responsibility. The operational scope thus complements the organizational scope, providing a coherent and accurate view of the overall carbon footprint.

Carbon footprint scope: What is the purpose?

The primary purpose of delineating scopes within a carbon footprint is to provide a clear and structured understanding of the sources of greenhouse gas emissions associated with an organization. By distinguishing between direct emissions (Scope 1) and indirect emissions (Scope 2 and Scope 3), companies can more effectively identify priority areas for reducing their environmental impact.

These different scopes also enable companies to meet environmental reporting requirements and comply with international standards such as those of the GHG Protocol. Finally, these scopes help organizations develop targeted strategies to reduce their environmental impact and adopt more sustainable practices.