Whether you're new to sustainability reporting or looking to deepen your knowledge, this article will provide a high-level overview to help your business understand and report its carbon emissions effectively.
Greenhouse gas emissions, or GHGs, are gases that when released, trap heat in the atmosphere, contributing to global warming and driving climate change. Carbon dioxide is one of the principal GHGs, so often you may hear carbon, carbon equivalents or GHGs used interchangeably. Let’s get started.
Scope 1 are the direct GHG emissions from sources that are owned or controlled by your company. Scope 1 emissions include emissions from the combustion of fuels in vehicles or machinery owned by your company. It also include emissions from chemical processes and fugitive emissions, which are leaded gasses, usually from refrigeration units.
To report Scope 1 emissions from mobile and stationary combustion, you'll need data on fuel consumption, such as natural gas, petrol, or diesel, used in your operations. This data often comes from utility bills, fuel purchase records, and meters. If your business releases process emissions, such as, for example, CO2 from the production of cement, this data is usually collected by operational teams. Data on fugitive or “leaked” emissions, usually from refrigerant units, are often recorded by facility maintenance teams.
Scope 2 emissions are indirect GHG emissions from the generation of purchased electricity, steam, heating, and cooling consumed by your company. Although you don't produce these emissions directly, they occur at the facility where your electricity or steam is generated.
For Scope 2 emissions, you need data on your electricity and energy consumption, usually available from your utility bills or energy management systems. Information on renewable electricity certifications, like RECS or REGO certifications, should be captured and reported under your Scope 2.
Scope 3 emissions are all other indirect emissions that occur in a company’s value chain. These can be divided into upstream and downstream emissions. Upstream emissions (“cradle to gate”) might include those from the production of purchased goods and services, business travel, and inbound logistics . Downstream emissions (“gate to grave”) could come from, waste disposal, the use of sold products, end-of-life treatment of sold products, and transportation and distribution of products to your end-user.
Reporting Scope 3 emissions is more complex and requires data from various sources, such as your suppliers, travel records, waste management reports, and customer usage patterns. Collecting this data often involves collaboration across your supply chain and with other stakeholders.
With this, you should now have a foundational understanding of Scope 1, 2 and 3 greenhouse gas emissions and where you find the data required your organization.
This is an important part of getting started with KEY ESG!
If you require any assistance or have any questions, please feel free to reach out to the KEY ESG team via the in-app chat function, or by emailing support@keyesg.com. We will be happy to help.