Are you being asked to compute your carbon footprint? Do you have questions about Scope 1 emissions?
- What are Scope 1 Emissions?
- What do you do if you lease your office buildings? Is it Scope 1 or Scope 3?
- What if you do not have usage data?
- How do your Scope 1 emissions compare to other Scope 1 emissions?
- How do you reduce your Scope 1 emissions?
- What are the benefits of calculating your carbon footprint?
In this article, we take a deep dive into all things Scope 1. Before we begin to answer all those questions, here are some basics:
Carbon Footprint (GHG Emissions Accounting) 101
GHG Protocol guidelines
The GHG Protocol Initiative is a partnership between the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD) to develop greenhouse gas accounting and reporting standards for business and promote broad adoption.
Greenhouse Gases and Global Warming Potential
The six main greenhouse gases are Carbon dioxide (CO2), Methane (CH4), Nitrous oxide (N2O), Hydrofluorocarbons (HFCs), Perfluorocarbons (PFCs), Sulfur hexafluoride (SF6). Each GHG has a “global warming potential,” or “GWP,” which refers to its heat-trapping ability relative to that of carbon dioxide (CO2). Greenhouse gas emissions are usually reported as CO2-equivalents (CO2e).
How to calculate your carbon footprint
- The carbon footprint of a company is determined by computing carbon dioxide equivalent emissions using activity data, emission factors, and global warming potential factors.
- Examples of activity data are typically fuel consumed (volume of natural gas, heating oil, kilowatt hours of electricity), miles traveled, or cost of product or activity.
- Emission factors convert activity data to carbon dioxide emissions. Various entities, including government agencies and intergovernmental organizations, publish emission factor databases.
- Global Warming Potentials (GWP) are used in addition to emission factors to compute carbon dioxide equivalents for non-CO2 emissions like Methane, Nitrous Oxide or HFC related emissions.
For additional details on calculating GHG emissions, check out Creating a GHG Inventory List and GHG Emissions Accounting: Activity Data and Emission Factors
Types of GHG Emissions
What are Scope 1 Emissions?
Scope 1 refers to direct GHG emissions that occur from sources that are owned or controlled by the company, for example, emissions from combustion in owned or controlled boilers, furnaces, vehicles, etc., and emissions from chemical production in owned or controlled process equipment.
- Stationary Combustion: Scope 1 emissions from stationary equipment like boilers and furnaces to generate steam, heat or power.
- Mobile Combustion: Scope 1 emissions from burning fuel in transportation equipment like cars, trucks, trains, planes, ships, etc.
- Fugitive Emissions: Scope 1 emissions that are not physically controlled but result from the intentional or unintentional releases of GHGs arising from the production, processing transmission storage, and use of fuels and other chemicals, often through joints, seals, packing, gaskets, etc.
What are Scope 2 Emissions?
Scope 2 refers to emissions from acquired and consumed electricity, steam, heating, and cooling. These emissions are a consequence of activities of the reporting organization but occur at sources owned or controlled by another organization (for example, they are owned or controlled by an electricity generator or utility).
What are Scope 3 Emissions?
Scope 3 emissions are a consequence of the activities that occur from sources not owned or controlled by the company. Some examples of scope 3 activities are extraction and production of purchased materials; transportation of purchased fuels; and use of sold products and services. Scope 3 activities also include waste disposal, employee business travel, and outsourced operations.
See GHG Protocol terms for a reference to GHG definitions.
What if you lease your office buildings? Is it Scope 1 or Scope 3?
Some companies may lease assets to other companies, for example, real estate companies that rent office or retail space or vehicle companies that lease vehicle fleets. Other companies operate in leased offices and use leased vehicles. To avoid double counting, GHG Protocol defines whether the lessor or the lessee should categorize the emissions as Scope 1, 2, or 3. This depends on the type of lease and the consolidation approach chosen while establishing the organizational boundary. Companies with leased assets using the operation control consolidation approach and have operational control over energy usage, report the emissions as Scope 1.
Additional guidance on categorizing emissions from leased assets can be found in GHG Protocol, Appendix F, Categorizing GHG Emissions Associated with Leased Assets
What if you do not have usage data?
In the early years of emissions reporting, there may be a gap in data availability. Fuel usage from vehicles or utility data for certain locations may be incomplete or unavailable. While this isn’t ideal, it is acceptable practice to estimate missing data in the short term. This avoids underreporting emissions and creates placeholders for improving data collection in subsequent years. For commercial buildings in the US, Commercial Buildings Energy Consumption Survey (CBECS) from the US Energy Information Agency provides data to compute estimates based on the location, type and area of the building.
How do your Scope 1 emissions compare to other Scope 1 emissions?
The Portfolio Manager tool available from energystar.gov provides data on a variety of buildings in the US and is great way to compare your building’s energy use with other similar buildings in similar climate zones.
ENERGY STAR Portfolio Manager—the Industry Standard for Benchmarking Commercial Buildings
How do you reduce your Scope 1 emissions?
Reduce your energy consumption: Improved weatherization and insulation in buildings, use LED lighting, upgrade to ENERGY STAR appliances.
Address refrigerant related emissions by managing leaks and disposing off refrigerants responsibly.
Electrification – Replace fossil fuel-based vehicles or building systems like heating, water heaters, and cook stoves with electric versions like EVs, heat pumps and electric water heater, and induction cooktops. This can have upfront costs but lower operational costs. Incentives provided by the Inflation Reduction Act can help with the upfront costs.
What are the benefits of calculating your carbon footprint?
Measuring your carbon footprint is an important step in understanding your environmental impact and getting insight into decarbonization levers specific to your company. In addition, it prepares you for data-backed disclosures and responses to customer or investor questionnaires. By knowing its carbon footprint, the company is set up to implement effective emission reduction strategies that play a significant role in the fight against climate change while also realizing financial benefits from energy savings and potential tax incentives.
Calculating your carbon footprint can be a daunting task. If you need help measuring your carbon footprint, Contact Us for a free guide and check out additional Carbon Accounting resources.
Your Carbon Steps: Practical Paths to a Sustainable Future
