Should a company focus on Scope 1, 2 and 3 emissions?

Yes, a company should focus on Scope 1, Scope 2, and Scope 3 emissions if it wants to effectively address its carbon footprint and contribute to the fight against climate change.

• Scope 1 emissions: These are direct emissions that result from the company’s own operations, such as fuel combustion in boilers, vehicles, or other equipment. Since these emissions are under the company’s direct control, it is essential to measure and manage them effectively.
• Scope 2 emissions: These are indirect emissions that result from the production of purchased electricity, heat, or steam consumed by the company. While the company may not have direct control over these emissions, it can influence them by choosing low-carbon energy sources or investing in renewable energy projects.
• Scope 3 emissions: These are all indirect emissions that result from the company’s value chain, including its suppliers, customers, and product use. Scope 3 emissions are typically the largest source of a company’s carbon footprint, and addressing them can require collaboration with other stakeholders.

Focusing on all three scopes of emissions can help a company gain a comprehensive understanding of its environmental impact and develop effective strategies to reduce its carbon footprint.

This can not only reduce the company’s environmental impact but also improve its brand reputation, attract socially responsible investors, and foster a culture of sustainability within the organization.

Sources:

• The Greenhouse Gas Protocol – Corporate Accounting and Reporting Standard (https://ghgprotocol.org/standards/corporate-standard)
• The Science-Based Targets Initiative (https://sciencebasedtargets.org/)
• The Carbon Trust – Scope 3 Emissions (https://www.carbontrust.com/resources/scope-3-emissions)
• Environmental Defense Fund – Understanding Scope 1, 2 and 3 Emissions (https://www.edf.org/climate/scope-1-2-3-emissions)
• World Resources Institute – The Business Case for Corporate Sustainability (https://www.wri.org/blog/2020/08/business-case-corporate-sustainability)