Understanding Scope 1, 2, and 3 Emissions in Business Carbon Footprints (Full Transcript)

Speaker 1: With all the decarbonisation talk, every business leader really must know what to consider as part of their company's carbon footprint. We tend to think about facilities, the energy usage and perhaps the fleet, but these only account for a part of a company's total carbon footprint. To help you better understand this, let me walk you through the concept of scope 1, 2 and 3 emissions. I'm the Sustainability Speaker, Susanna Haase-Nöhl. Scope 1 and 2 emissions arise from a company's operations, such as production facility or heating or cooling the office. These are somewhat easy to control, for instance by switching to renewable energy or to an electronic fleet. But what about scope 3? Oh, that is a nice cup of tea. Pucca, a Unilever brand, reports that 49% of their emissions come from boiling the kettle to make a cuppa. This is an example of scope 3 emissions, which are more indirect, yet related to the usage of a company's products or services. Scope 3 makes up most of a company's carbon footprint. Scope 3 can be difficult to measure, as it includes emissions from waste when a product is disposed, the supply chain, outsourced activities, as well as things like business travel. When you come across with a company's carbon discloser, do ask whether it includes scope 1, 2 and 3. Thanks for joining, and let me know if you'd like to learn more about business climate matters. I'm Susanne Hasenel, the Sustainability Speaker.