Understanding Scope 1, Scope 2 and Scope 3 emissions
To work towards lower emissions, organisations first need a clear picture of where their climate impact comes from. The widely used “scope” system groups emissions into three categories: Scope 1, Scope 2 and Scope 3. Together, they give a structured overview of both direct and indirect emissions across an organisation’s activities.
Scope 1: Direct emissions
Scope 1 covers the emissions an organisation creates itself. This includes fuel burned on site, heat produced in its own facilities, and emissions from company‑owned vehicles. In short: anything directly linked to day‑to‑day operations.
Reducing Scope 1 emissions often means improving energy efficiency, shifting to renewable energy where possible, and investing in technology that lowers the direct environmental impact of production and transport.
Scope 2: Indirect energy emissions
Scope 2 includes emissions from the energy an organisation purchases—mainly electricity, heating or cooling. These emissions occur at the energy producer’s site, not at the organisation’s own facilities, but they are still linked to its energy use.
Common ways to reduce Scope 2 emissions include choosing renewable electricity, improving energy efficiency in buildings and equipment, and working with suppliers who generate cleaner energy.
Scope 3: Other indirect emissions
Scope 3 covers all other indirect emissions throughout the value chain, both upstream and downstream. This can include raw material extraction, transport, product use, waste handling and more. Because Scope 3 touches so many parts of the chain, it is often the largest and most complex category.
Reducing these emissions requires collaboration—working closely with suppliers, customers and partners to understand the full life cycle of products and identify improvements that reduce environmental impact over time.
By looking at all three scopes together, organisations get a more complete view of their climate impact and can plan long‑term reductions that make a real difference. This approach supports more responsible, sustainable business practices and helps guide decisions that matter—today and for the future.
