Carbon emissions are categorized into three scopes based on their source and relationship to your organization. This classification system, developed as part of the Greenhouse Gas Protocol, helps businesses identify, measure, and manage their emissions effectively.
Scope 1: Direct Emissions
Emissions that come directly from sources owned or controlled by your organization.
Key examples:
Fuel combustion in company vehicles
Natural gas used for heating buildings
Industrial process emissions
Fugitive emissions (leaks) from refrigeration or air conditioning systems
Emissions from company-owned machinery or generators
Scope 1 emissions are generally the most straightforward to measure and manage, as they come from assets and activities under your direct control.
Scope 2: Indirect Energy Emissions
Emissions from purchased electricity, steam, heating, and cooling consumed by your organization.
Key examples:
Electricity purchased from utility providers
District heating or cooling
Purchased steam
While you don't directly create these emissions, they result from your energy consumption choices. Switching to renewable energy sources can significantly reduce Scope 2 emissions.
Scope 3: Value Chain Emissions
All other indirect emissions that occur in your company's value chain, both upstream and downstream.
Key examples:
Purchased goods and services
Business travel
Employee commuting
Waste disposal
Transportation and distribution
Scope 3 typically represents the largest portion of an organization's carbon footprint (often 70% or more) but can be the most challenging to measure accurately.
How CarbonTrail Simplifies Scope Tracking
CarbonTrail streamlines the complex process of scope classification by automatically categorizing your expenses into the appropriate emission scopes. When you connect your accounting software or upload expense data, our AI system analyzes each purchase and assigns it a category within Scope 1, 2, or 3. This automated approach eliminates the guesswork from scope classification and ensures consistent categorization across your carbon inventory.