Scope 1,2, & 3 Emissions – The Quick and Dirty Guide

You’ve probably seen the terms Scope 1, Scope 2, and Scope 3 floating around sustainability reports. They sound technical – and they are – but I promise you can’t get a handle on the basics in about 3 minutes.  

Let’s break it down: 

Scope 1: Direct Emissions 

These are emissions you produce directly – from fuel burned on-site or company-owned vehicles.  

Think: 

  • Diesel forklifts 

  • Natural gas in manufacturing 

  • On-site generators 

Scope 2: Indirect Energy Emissions 

These come from the energy you produce – like electricity, heating, or cooling.  

Think: 

  • Your electric bill 

  • Purchased steam or chilled water 

  • Utility-based emissions 

Scope 3: Value Chain Emissions (aka. The BIG One) 

This is the trickiest – and largest – category. Scope 3 includes all other indirect emissions across your value chain.  

Think: 

  • Raw material production 

  • Transportation/logistics 

  • Business travel 

  • Product use and disposal 

  • Even your suppliers’ emissions  

Sara’s Straight Talk

Most companies nail Scope 1 and 2.  

But Scope 3? That’s the beast. 

In 2023, corporations reported that their Scope 3 supply chain emissions were, on average, 26 times greater than their emissions from direct operations (Scopes 1 and 2) – but it’s also where the biggest innovation opportunities lie. (Boston Consulting Group, 2024). 

We’ve got tools to estimate and reduce Scope 3, even when supplier data is fuzzy. Don’t go it alone.

Drop your questions to me using #AskSustainableSara and I’ll tackle them in future posts. 

Email: SustainableSara@greencirclecertified.com  


Written by Sara Risley, Certification Officer, GreenCircle Certified

About Sustainable Sara

Sustainable Sara is GreenCircle Certified’s in-house Certification Officer – and your go-to source for navigating the complex world of sustainability claims, audits, and emissions reporting. She’s deeply knowledgeable, fiercely passionate about environmental integrity, and believes that every company – no matter the size – can make credible, verifiable sustainability progress.  

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