23/04/2024
I don’t know about you but we’re hearing more about ‘the scopes’ in the media and company reporting without the context to help us understand what it’s all about. Thanks to for asking us to cover this
So here’s a simple explanation. If it’s still not clear, never fear, just say!
In brief, they’re categories to help organisations report their emissions. Currently, scopes 1 and 2 are mandatory to report for companies listed in the FTSE. It’s also part of SECR reporting, so lots of companies are starting to look at this data even though they don’t have to. Scope 3 is tricky, because it’s reliant on 3rd party data, so it’ll be incomplete and inaccurate. But, we can all start to look at some of the elements to get us on our way
Here’s a bit more detail:
Scope 1: a company’s direct emissions, that is fossil fuels the organisation burns itself in company property. That could be gas in boilers, coal in furnaces or petrol in company-owned flee vehicles. Quite simple and relatively easy to get the data on this one
Scope 2: these are indirect emissions from energy the company has bought to use to manufacture its goods or deliver its services. This is mostly electricity (the electricity firm burns the fossil fuels to create the power) and potentially energy for cooling in manufacturing. A company could have 0 emissions in scope 2 if it only uses renewable energy. This should be the easiest category to report
Scope 3: the tricky one. Emissions up and down the product lifecycle, to understand its full impact. Any emissions from suppliers (they’d categorise them as scope 1 or 2), you’d categorise as scope 3. If customers use your products and that usage creates emissions, you’d have to estimate those too. If you use a delivery firm to send goods to customers, that’s scope 3 and staff activity, commuting to work and so on counts as scope 3. Essentially, emissions associated with your business that you can’t control directly
Hopefully that’s clearer, but don’t worry. It’s not exactly straightforward, so don’t feel flustered if it’s all a bit confusing