BUSINESS


How to reduce Scope 3 emissions


Scope 1, 2, and 3 emissions are greenhouse gases that are released across an organization’s entire value chain. Scope 3 emissions are the most complex, as they are released before and after a product is delivered or consumed, McKinsey explains.


Greenhouse gas emissions are classified into three categories, or scopes. Organizations divide their emissions into these scopes to help them create effective reduction plans. McKinsey says that Scope 3 emissions, which are often hard to categorize, can potentially contribute far more to an organization’s overall carbon footprint than the other two scopes. An organization’s Scope 3 emissions, also known as its life cycle emissions, are those that arise across the value chain, both upstream and downstream.


134 | ISSUE 110 | DEC 2024 | THE REPORT


At a glance:


- Scope 1 emissions are released when a company manufactures a product or delivers a service (During production)


- Scope 2 emissions are released by off-site energy providers when a company makes a purchase. (Upstream)


- Scope 3 emissions: Upstream, they are released from the activities that a company engages in prior to production, from employee commuting to leased assets to transportation and distribution. Downstream, Scope 3 emissions are released from use or disposal of a product or service.


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