Credit: ESG Analytics, https://www.esganalytics.io/insights/what-are-scope-1-2-and-3-carbon-emissions

These categories help to understand and manage emissions associated with company activities and products and these measures are often used in the context of corporate sustainability and carbon accounting. Here is an overview of each scope:

Scope 1 Emissions are direct emissions from sources that are owned or controlled by the organization. These emissions typically include: a) Combustion of fossil fuels in company-owned facilities (e.g., on-site heating, cooling, and power generation); b) emissions from company-owned vehicles and equipment; c) Emissions from chemical processes within the organization. Scope 1 emissions are considered the most direct and controllable emissions for an organization because they result from activities under its direct operation and control.

Scope 2 Emissions are indirect emissions associated with the production of the electricity, heat, or steam that an organization purchases from an external source. These emissions are often generated at a power plant or energy supplier and not by the organization itself. The main source of Scope 2 emissions is the electricity used by the organization, which can be generated from both fossil fuels and renewable energy sources. Calculating Scope 2 emissions is a way to assess the environmental impact of an organization's electricity consumption and to encourage the use of cleaner, more sustainable energy sources.

Scope 3 Emissions are indirect emissions that are not controlled or owned by the reporting organization but occur as a result of its activities. These emissions are the most extensive and challenging to calculate, as they encompass the entire supply chain, product lifecycle, and other external factors. Scope 3 emissions can include emissions associated with: a) Purchased goods and services (e.g., emissions from suppliers); b)Transportation and distribution of products; c) Employee commuting and business travel; d) Use and end-of-life treatment of products; e) Upstream and downstream activities in the value chain.

Organizations are encouraged to account for and reduce their Scope 1, 2, and 3 emissions to minimize their environmental impact and contribute to sustainability and climate goals. These emissions are often reported in environmental sustainability reports or disclosed as part of corporate social responsibility efforts. The graphic above depicts the overall complexity for inclusion of Scope 1, 2, and 3 emissions when completing a life cycle analysis accounting for elements at points along the supply chain. Carbon Sequestration plays a critical role reversing carbon emissions.