Reducing Scope 1, 2, and 3 Emissions: Best Practices

What are Scope 1, 2, and 3 Emissions?

Scope 1, 2, and 3 emissions are greenhouse gas emissions categorized by the Greenhouse Gas Protocol of 2001. Each scope outlines how an organization can create greenhouse gas emissions.

Scope 1 emissions are greenhouse gas emissions created directly from a reporting organization. For example, the emissions resulting from a company-owned boiler would be considered a Scope 1 emission.

Scope 2 emissions are emissions created from the use of purchased utilities, such as electricity or steam. These are often known as indirect emissions, as another organization is providing the energy and the result emissions are created from that energy.

Scope 3 emissions are often the largest category of a company’s emissions and include a wide range of indirect emissions. These cover everything from employee commutes to investments and beyond. Any emissions a company indirectly contributes to fall under Scope 3. For example, emissions produced throughout a company’s value chain — like those from transporting raw materials — would be considered Scope 3 emissions.

Reducing Scope 1 and 2 Emissions

Scope 1 emissions, while easy to identify, are often challenging to reduce. Depending on the industry, reducing them could require major changes to day-to-day operations. Some changes also require substantial monetary investment, such as switching to renewable energy sources. Scope 2 emissions are often easy to calculate, as utility bills often document how much is used in a monthly statement.

Some strategies for reducing Scope 1 and 2 emissions include:

• Install renewable energy systems, such as wind turbines and solar panels, when possible. This can drastically reduce a company's Scope 2 emissions.
• Optimize and upgrade equipment to more eco-efficient alternatives to minimize direct emissions.
• Identify areas in your operating process that produce high emissions and look for opportunities to minimize or completely eliminate them.

How to Reduce Scope 3 Emissions

Scope 3 carbon emissions are from indirect sources created through normal business operations. These encompass a wide range of emissions including emissions created by your employees commuting to and from work, and from the distribution of your product(s) from third-party vendors.

Reducing Scope 3 emissions requires a full review of your current supply chain. Scope 3 emissions include emissions generated by additional vendors and the transportation of raw materials. One way to help minimize Scope 3 emissions is to work with individuals along your supply chain who share similar values regarding carbon emissions.

Another option to minimize Scope 3 emissions is to provide your employees with opportunities to minimize emissions as well. Providing them with financial benefits to make more green choices, such as a Carbon Savings Account, can help to minimize the amount of Scope 3 emissions your organization creates.

Leveraging Carbon Offsets

One way organizations are choosing to mitigate their carbon emissions is by using what is known as a carbon offset. A carbon offsetting is an action or strategy used to help increase natural factors that consume carbon. For example, land restoration or the planting of new trees in a forest are common carbon offset projects often used in an offsetting strategy.

For some organizations, using a carbon offset is necessary to achieve the right balance between their emissions and the amount of carbon they produce. For example, airlines like Southwest are introducing carbon offset programs to help fund opportunities to replace their emissions.

Reducing Carbon Emissions FAQ

How can organizations reduce carbon emissions?

Organizations can reduce their carbon emissions in many different ways, and implementing this process into company values is a great way to instill this responsibility in everyone within the organization. Creating more efficient operational processes, replacing older equipment for more eco-friendly options, minimizing travel, and providing your employees individual opportunities to do their part are all ways organizations can reduce their carbon emissions.

How can companies reduce Scope 1 emissions?

Scope 1 emissions are carbon emissions created directly by an organization. Processes like the distilling process or manufacturing can generate Scope 1 emissions. To reduce these, consider finding opportunities to reduce your production, find areas with the bulk of emissions and minimize or eliminate them, or offset them using carbon offset strategies.

How do I cut Scope 3 emissions?

Scope 3 emissions are often the majority of an organization's emissions, as they encompass the widest variety of possibilities. They are indirect emissions created from your business activities' upstream or downstream processes. For example, the emissions created from shipping goods are considered a Scope 3 emission. Your team can minimize Scope 3 emissions associated with shipping by looking for local suppliers or partnering with suppliers with similar values.

Minimize Scope 3 Emissions with Scope Zero

Provide employees with opportunities for financial wellness while minimizing Scope 3 emissions. Schedule a demo to learn how you can measure, reduce, and report Scope 3 work-from-home and commute emissions while reducing spend on sustainability goals.

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