Understanding Scope 1 and global emissions chains

|  January 16, 2024

🕓 Reading time 9 minutes

Table of contents

1. The importance of Scope 1 and its role in the context of global emissions chains

2. Detailed examples of Scope 1 emissions

3. Relevance of Scope 1 for emission reduction measures

1. The importance of Scope 1 and its role in the context of global emissions chains

Classification of Scope 1

The categorisation of greenhouse gas emissions into three different ‘scopes’ is a central component of the Greenhouse Gas Protocol, an internationally recognized standard for recording and reporting greenhouse gas emissions. Scope 1 includes direct emissions from a Company itself caused These include, for example, emissions from own or controlled sources such as vehicle fleets, heating systems, and production facilities. These direct emissions are often the first point of contact for companies to measure and reduce their climate impact.

Relationship of scopes with the emissions of other companies

The Relationship between Scope 1 and the other scopes, in particular Scope 2 and Scope 3, is of great importance for a comprehensive understanding of a company's climate impact. While Scope 1 covers a company's direct emissions, Scope 2 on indirect emissions from the generation of energy, such as electricity, heat or steam. This is where the Scope 1 emissions from other companies comes into play. For example, if a company purchases electricity from a coal-fired power plant, the emissions generated during electricity generation are Scope 1 emissions of the power plant, but for the purchasing company they fall under Scope 2.

Scope 3 This in turn expands the picture to include all other indirect emissions that occur along a company's entire value chain. These include, for example, emissions resulting from the production and transport of purchased materials and services, business travel, or the disposal of products. Many of these emissions are the Scope 1 or Scope 2 Emissions from other companies. For example, if a company purchases components from a supplier, the emissions generated during the production of those components are Scope 1 emissions of the supplier, but fall under Scope 3 of the purchasing company.

This connection highlights how closely global economic activities are interconnected and that a company's climate impact can extend far beyond its own direct emissions. Considering all three scopes allows companies to gain a complete picture of their climate impact and develop effective strategies to reduce their overall greenhouse gas emissions.

2. Detailed examples of Scope 1 emissions

Examples from industry

In manufacturing companies, Scope 1 emissions are often the result of combustion processes. This includes emissions from boilers, furnaces, or industrial processing equipment. Another significant example is emissions from company-owned vehicles, such as trucks used for transport and logistics purposes or forklifts used within production facilities. Emissions from generators used to power machinery or as emergency power sources also fall under Scope 1.

Examples from the service sector

In the service sector, Scope 1 emissions are often less obvious but still relevant. They arise, for example, from heating systems in office buildings or emissions from company-owned vehicles. They also include emissions from small power plants used to supply energy to buildings or from cooling systems used in data centers or for cooling office buildings. Furthermore, service companies that have their own maintenance or delivery fleets can record significant emissions from these sources.

Examples from agriculture

In agriculture, Scope 1 emissions arise primarily from direct agricultural activities. These include, for example, methane emissions from ruminants, emissions from fertilizer use, and the combustion of biomass. The operation of agricultural machinery, such as tractors and harvesters powered by diesel, also leads to direct emissions.

Examples from the energy sector

In the energy sector, Scope 1 emissions are particularly critical. They arise from the combustion of fossil fuels in power plants to generate electricity and heat. Emissions from the extraction and processing of crude oil, natural gas, and coal are also included.

Overall, these examples demonstrate that Scope 1 emissions can take different forms in different sectors. Each sector faces specific challenges when it comes to reducing these emissions.

3. Relevance of Scope 1 for emission reduction measures