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Understanding emission scopes

Netnada automatically allocations your emission data into scopes. You can see this breakdown in your Overview and Dashboard pages of the app. The reports generated in the Reports page will also include a breakdown of emissions by scopes.

The GHG Protocol Corporate Standard classifies a company’s GHG emissions into three ‘scopes’. You can think of these scopes as buckets.

  • Scope 1 emissions are direct emissions from owned or controlled sources. 
  • Scope 2 emissions are indirect emissions from the generation of purchased energy. 
  • Scope 3 emissions are all indirect emissions (not included in scope 2) that occur in the value chain of the reporting company, including both upstream and downstream emissions.

Emissions in your value chain

Companies around the world are now accounting and reporting on their direct emissions (scopes 1 and 2). But there's more to it than that. The Greenhouse Gases protocol now includes standards for businesses to account for the emissions along their entire value chain.

This is important because emissions from the value chain often make up the majority of a company's greenhouse gas impacts. For instance, emissions in your value chain can account for over 90% of total emissions. 

Developing a full GHG emissions inventory – incorporating corporate-level scope 1, scope 2, and scope 3 emissions – enables companies to understand their full value chain emissions and to focus their efforts on the greatest GHG reduction opportunities

Why should your business care?

Businesses have found that developing corporate value chains (scope 3) and product GHG inventories deliver a positive return on investment. This approach helps companies to: 

  • Identify and understand risks and opportunities associated with value chain emissions;
  • Identify GHG reduction opportunities, set reduction targets and track performance; 
  • Engage suppliers and other value chain partners in GHG management and sustainability; 
  • Enhance stakeholder information and corporate reputation through public reporting. 

Through these activities, companies can reduce emissions and costs to meet strategic business objectives. 

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