What Are Scope 1, 2, 3 Emissions?

A Companion to Understanding Carbon Accounting for Smarter Sustainability

In the journey toward net-zero, understanding where your carbon emissions originate is a crucial first step. Whether you're a sustainability officer at a construction firm, a procurement director, or a corporate decision-maker, grasping the concept of Scope 1, 2, and 3 emissions enables you to measure, manage, and reduce your climate impact more effectively.

Let’s break down what these scopes actually mean — and why they matter — especially if you’re serious about environmental responsibility and ESG (Environmental, Social, and Governance) reporting.

What Are Greenhouse Gas (GHG) Emissions?

Greenhouse gases (GHGs) such as carbon dioxide (CO₂), methane (CH₄), and nitrous oxide (N₂O) trap heat in the Earth’s atmosphere, driving global warming and climate change. To reduce their impact, organizations must first measure and categorize these emissions effectively.

This is where the GHG Protocol — a globally recognized framework — steps in. It classifies emissions into three scopes: Scope 1, Scope 2, and Scope 3.

Scope 1: Direct Emissions from Owned or Controlled Sources

Scope 1 emissions are the most direct and typically the easiest to measure. They come from sources that are owned or controlled by your organization.

Examples include:

• Fuel combustion in boilers, furnaces, or vehicles
• Emissions from generators on a construction site
• Process emissions from industrial facilities

These are emissions your organization has direct control over, making them ideal candidates for reduction through energy efficiency upgrades, electrification, or switching to cleaner fuels.

Scope 2: Indirect Emissions from Purchased Energy

Scope 2 emissions refer to indirect emissions from the generation of purchased electricity, steam, heating, or cooling consumed by your organization.. While you may not produce this energy yourself, your demand for it still drives emissions.

Examples include:

• Electricity used in offices, factories, or construction trailers
• District heating or cooling purchased from a utility provider

Reducing Scope 2 emissions can be achieved through renewable energy adoption (e.g., solar, wind), energy-efficient technologies, and selecting green energy suppliers.

Scope 3: Indirect Emissions Across the Value Chain

Scope 3 emissions are the broadest and most complex to manage. These include all other indirect emissions that occur throughout your value chain — both upstream and downstream.

Examples include:

• Business travel and employee commuting
• Extraction and transportation of raw materials
• Waste disposal and end-of-life product treatment
• Emissions from suppliers and subcontractors
• Use of sold products by customers

For industries like construction, manufacturing, or fashion, Scope 3 emissions often account for more than 70% of total emissions. Addressing Scope 3 is crucial if your organization wants to achieve true sustainability across the entire supply chain.

Why Understanding Scope 1, 2, and 3 Matters

• Regulatory Compliance: Many countries now require companies to disclose emissions data, especially for Scope 1 and 2.
• ESG Transparency : Investors and stakeholders expect clear reporting across all scopes of emissions.
• Competitive Advantage : Holistic emissions reductions can lead to cost savings, brand enhancement, and customer loyalty.
• Net-Zero Goals: Achieving science-based targets hinges on accurate, complete emissions tracking — particularly Scope 3.

How SustainInsight Supports You

At SustainInsight, we make carbon tracking and reporting simple and actionable. Our platform helps businesses:

• Capture Scope 1, 2, and 3 emissions with real-time analytics
• Automate data collection across projects, suppliers, and energy systems
• Generate audit-ready, ISO 14064-compliant sustainability reports
• Identify cost-saving sustainability opportunities
• Set and monitor progress toward net-zero goals

Whether you're managing sustainability across a real estate portfolio or a single construction site, SustainInsight empowers you to take action — not just react.

Final Thoughts

Understanding the three scopes of emissions isn’t just a matter of compliance — it’s the foundation of a future-ready, sustainable business strategy. As climate regulations tighten and stakeholder expectations rise, transparent and accurate carbon accounting is no longer optional.

It’s time to ask: Where are your emissions coming from — and what are you doing about them?