At NEDCON, we use the Greenhouse Gas (GHG) Protocol to track and manage our carbon emissions. This system helps us measure emissions across Scope 1, Scope 2 and Scope 3 covering everything from our direct operations to energy use and supply chain activities. By following this approach, we can get a clear picture of our environmental impact and find ways to reduce our carbon footprint, all while working towards global sustainability goals.
The different scopes in GHG protocol explained
The GHG protocol was designed in 1998 by the WRI (World Resources Institute) and WBCSD (World Business Council for Sustainable Development) with various large partners from business, industry, and environmental groups. The first official edition was published in 2001. This is continually updated through revisions of the guides for using the GHG protocol. Since the Paris Agreement in 2015, the GHG protocol has been helping governments reduce CO2 by establishing standards, tools, and online training.
The GHG protocol consists of three scopes: scope 1, scope 2, and scope 3. Each of these scopes focuses on different aspects of CO2 emissions. The GHG protocol does not provide certifications and focuses solely on reporting and mapping CO2.
Scope 1 – Direct emissions
Scope 1 emissions include direct emissions from sources owned or controlled by the reporting company. This encompasses stationary combustion (e.g., natural gas for heating), fuel use in company-owned vehicles (e.g., leased cars and heftrucks) and fugitive emissions (e.g., from cooling systems). The company has direct control over both the usage and the impact of these emissions.
Scope 2 – Direct/indirect emissions
Scope 2 emissions refer to the purchase of energy, such as heat or electricity, consumed by the reporting company. While the production of this energy takes place at an external plant, the company still has influence over the amount of energy it uses. For this reason, Scope 2 is considered both direct and indirect, and is defined in a separate category. Scope 2 emissions should be reported using both market-based and location-based methods, as outlined in the GHG Protocol.
Market-based emissions are calculated using supplier-specific emission factors to determine the CO2 emissions associated with electricity usage.
Location-based emissions are calculated using the average emission factors of the electricity grid that supplies power to the company’s facilities.
Scope 3 – Indirect emissions
Scope 3 emissions consists of all indirect emissions resulting from a company’s activities. The reporting company has an indirect influence on these emissions. Scope 3 emissions are divided into 15 categories: 8 upstream categories and 7 downstream categories. Upstream activities refer to emissions from processes that occur before the company’s operations, while downstream activities refer to emissions from processes that occur after the company’s operations.
The infographic below shows the different scopes and their corresponding categories.
In a separate article, we will explore the different upstream and downstream categories and what they specifically report on.
*Source: This blog is based on information from the Greenhouse Gas Protocol, as published on their website: https://ghgprotocol.org
