Greenhouse gas monitoring, sometimes described as Scope 1, Scope 2 or Scope 3, refers to the practice of tracking and measuring the emissions of greenhouse gases that are generated by a company's operations, including its supply chain, production processes, and transportation. This involves gathering data on the consumption of energy and raw materials, as well as emissions generated during production and transportation activities. The purpose of greenhouse gas monitoring as a business is to identify areas of high emissions and develop strategies to reduce them, with the ultimate goal of mitigating the impact of climate change. This practice is becoming increasingly important for businesses as governments and consumers demand greater accountability and action on climate change.
The emissions are split into 3 ‘scopes’:
Scope 1 – Are direct greenhouse gas emissions from company-owned or controlled sources, such as emissions from combustion in boilers or vehicles.
Scope 2 – Are indirect greenhouse gas emissions from the generation of purchased electricity, heat, or steam consumed by the organization.
Scope 3 - Are indirect emissions from activities outside of the organization's control, such as emissions from the production of purchased materials, employee commuting, or waste disposal.