What are Scope 1, 2, and 3 of carbon emissions?

Why measure Scope emissions?

Measuring GHG emissions is the first step in any strategy aimed at achieving Net Zero. Assessing the emissions helps identify the sources and volumes of the GHGs emitted. This, in turn, enables the development of an effective emissions reduction plan.

However, the process of measuring GHG emissions is very complex. It requires coordination among various stakeholders in the supply chain. Transparency and accuracy are also required. Without established measurement standards, the process may lead to inaccuracies. This may affect the effectiveness of any efforts.

One of the most widely used tools for measuring emissions is the GHG Protocol. It was developed by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD).

The GHG Protocol provides guidelines for measuring and managing greenhouse gases. According to the GHG Protocol, GHG emissions are divided into 3 scopes:

• Scope 1: Direct emissions from sources owned or controlled by the organization;
• Scope 2: Indirect emissions from the consumption of purchased energy;
• Scope 3: Other indirect emissions across the supply chain and product lifecycle.

Classifying emission sources into scopes based on their position in the value chain helps gain a comprehensive view. Thus, it helps manage emissions more effectively.

What are Scope 1 emissions?

Definition

Scope 1 emissions include all direct emissions from sources that are owned or controlled by the reporting organization. These include:

• Stationary emissions: Emissions from fuel combustion in stationary equipment and machinery. For example, boilers, generators, or heating systems
• Mobile emissions: Emissions from fuel combustion in vehicles. For example, trucks, buses, cars, and boats owned by the organization
• Fugitive emissions: Emissions from leaks in machinery and equipment. For example, refrigeration systems or gas-containing equipment
• Process emissions: Emissions from production or processing activities. For example, emissions during cement production, factory smoke, or chemicals

Example

At Oxalis, Scope 1 emission sources include:

• Vehicles transporting customers from the airport to the office, from the office to the tour starting point, within ATV tours, boat tours, and transporting staff for business trip
• Diesel generators provide electricity for the office in case of power outages
• Gas and charcoal stoves in kitchens and campsites
• Refrigerant gas in air conditioning systems at the office

What are Scope 2 emissions?

Definition

Scope 2 emissions include indirect emissions from the consumption of purchased energy, such as electricity, steam, and heat.

Energy consumption activities themselves don’t directly emit GHGs. Yet, the production of electricity, steam, or heat at power plants typically involves emissions. For example, in thermal power plants, producing energy from fossil fuels results in emissions. Each kWh of electricity generated can cause a certain amount of GHGs. It depends on the type of fuel used and the efficiency of the plant.

Organizations can calculate their Scope 2 emissions based on their energy consumption and the electricity source from their supplier.

Example

At Chày Lập Farmstay, Scope 2 emission sources include grid electricity (used only at night, with 100% solar power used during the day).

What are Scope 3 emissions?

Definition

Scope 3 is the most complex and extensive category. It encompasses all other indirect emissions in the supply chain and product lifecycle. These emissions aren’t directly controlled by the organization but can account for up to 90% of its total GHG emissions. Scope 3 is divided into 2 main groups with 15 categories:

Upstream (emissions during the creation of products):

1. Purchased goods and services: Emissions from purchasing external materials, products, and services. For example, at Oxalis, emissions arise from buying food, beverages, kitchen supplies, tour consumables, amenities for accommodation services, maintenance supplies, staff uniforms, and office supplies.

2. Capital goods: Emissions from the production, construction, or installation of fixed assets such as machinery and equipment. Examples include fixed assets and tour equipment, safety gear, camping supplies like shuttle buses, ATVs for tours, helmets, safety harnesses, satellite phones, and tents. For accommodation operations: furniture, room amenities, and customer service equipment.

3. Fuel and energy-related activities: Emissions from the production and transportation of consumed fuel and energy. At Oxalis, this includes emissions related to purchasing fuel (gasoline, coal, gas) for operating transportation, cooking during tours, or in the accommodation facility’s kitchen.

4. Transportation and distribution: Emissions from transporting materials and products to the organization. Examples include outsourcing vehicle services for transporting customers from the tour office to the trekking point or using courier services to deliver mail and goods

5. Waste from operations: Emissions from handling waste produced during operations or production processes. At Oxalis, there are 4 waste groups: organic waste from leftovers; recyclable waste like cardboard, beer cans, and scrap paper; electronic waste; and mixed waste that can’t be recycled. The emissions vary depending on how each waste type is treated. This includes recycling, incineration, or eco-friendly composting processes.

6. Business travel: Emissions from employee business trips via transportation. For instance, Oxalis employees make regular or ad-hoc business trips, where emissions are generated based on the vehicle’s distance and fuel type used.

7. Employee commuting: Emissions from employees commuting to and from work. At Oxalis, employees use various modes of transportation such as walking, motorbikes, and cars. The emissions generated from their commutes are accounted for under this scope.

8. Leased assets: Emissions from assets leased by the organization for use. Oxalis doesn’t have emissions from this activity.

Downstream (emissions during product distribution and use):

9. Transportation and distribution: Emissions from transporting final products to customers. An example is the delivery service for clothing and shoes related to Gearshop sales.

10. Processing of sold products: Emissions when a third-party company further processes a product sold by the reporting company. Oxalis doesn’t have emissions from this activity.

11. Use of sold products: Emissions from using sold products, such as emissions from energy-consuming devices. Oxalis doesn’t have emissions from this activity.

12. End-of-life treatment of sold products: Emissions from the disposal of products at the end of their lifecycle, including landfill or recycling. An example is the emissions from the disposal and recycling of clothes and sandals sold by Oxalis Gearshop after customers no longer use them.

13. Leased assets: Emissions from assets leased by the organization to third parties for use. Oxalis doesn’t have emissions from this activity.

14. Franchises: Emissions related to the operations of franchised outlets. Oxalis doesn’t have emissions from this activity.

15. Investments: Emissions from investments in external businesses or projects. Examples include investments in construction projects like hotels and campsites that will generate future economic value for the organization.

How to reduce Scope 1, 2, and 3 emissions?

Reducing emissions is an essential part of an environmental protection strategy to achieve Net Zero. For each emission scope, distinct methods must be employed to achieve reduction targets.

Reducing Scope 1 emissions

• Improve machinery and equipment efficiency: Optimizing the performance of machinery and equipment helps reduce energy consumption and emissions. Regular maintenance and equipment upgrades also cut emissions
• Use renewable energy-powered transport: Transition to vehicles that use renewable energy, such as electric cars
• Inspect and repair leaking emissions from equipment: Check and repair equipment to prevent leaking emissions, such as gas leaks from cooling systems
• Use energy from biomaterials: Replace fossil fuel energy with bioenergy, such as biofuels or bagasse

Reducing Scope 2 emissions

• Energy conservation: Implement energy-saving measures, such as installing energy-efficient devices or turning off equipment when not in use
• Install solar power systems: Use solar energy for daily operations to reduce dependence on the grid

Reducing Scope 3 emissions

• Optimize supply chain and reduce transportation: Streamline the supply chain to reduce transportation frequency and travel distance. Collaborate with supply chain partners to find short-term and long-term solutions
• Design environmentally friendly products and packaging: Create products and packaging that are biodegradable or recyclable to reduce emissions throughout the product’s lifecycle
• Encourage recycling, reusing, and repairing: Recycling, reusing, and repairing products helps reduce waste and emissions from new production
• Shift to a product rental model: Renting products reduces the need for new production. This lowers emissions from manufacturing and disposal
• Product lifecycle recovery for processing: Collecting products at the end of their lifecycle for effective recycling or waste management
• Promote online meetings and remote work: Reduce the need for travel to lower emissions from transportation
• Support employees in using green transport: Encourage the use of green transportation, such as bicycles and electric vehicles
• Optimize business travel schedules: Plan efficient business travel, reducing unnecessary trips and travel distances

Conclusion

Measuring emissions across Scopes 1, 2, and 3 allows organizations to assess their emissions based on the degree and control they have over them. This enables them to outline specific actions according to priority levels to achieve Net Zero step by step.

Take control of your emissions and strive for Net Zero – It’s time to take action!

The Oxalis Experience.