If you've received an ESG questionnaire from a customer, you've probably seen the terms Scope 1, 2, and 3 emissions. Here's what they actually mean.
Scope 1: Direct Emissions
These are emissions from sources you own or control directly. For manufacturers this includes natural gas burned in your facility, diesel used in your fleet, and any industrial processes that release greenhouse gases.
Scope 2: Indirect Energy Emissions
These are emissions from the electricity, heat, or steam you purchase. Even though the emissions happen at the power plant, they're attributed to you as the consumer.
Scope 3: Everything Else
Scope 3 covers all other indirect emissions across your value chain — from the goods you purchase, business travel, waste disposal, and the use of your products by customers. This is the hardest to calculate but increasingly what customers are asking about.
What Do You Actually Need to Calculate?
For most manufacturers responding to customer questionnaires, Scope 1 and 2 are the priority. Scope 3 becomes important when your largest customers are doing their own mandatory reporting.
Book a discovery call to understand exactly what applies to your situation.