What Are Scope 1, 2, and 3 Emissions — And Why Should You Care? (ELI5)

The Hidden Footprints of Corporate Pollution — And Why Scope 3 Changes Everything

All CO₂ emissions from a company are categorized into Scope 1, 2, and 3. This gives us a framework to understand how to reduce emissions across all operations. Reducing these emissions is our only chance to limit the dire effects of global warming — and keep global temperature rise under 1.5°C.

Let’s say you run a company that sells cookies. You bake them in your factory, wrap them in plastic, power your ovens with electricity, and ship them to stores using trucks. Now, let’s talk about the pollution (greenhouse gases) this creates. That’s where Scope 1, 2, and 3 emissions come in.

🧱 Scope 1: Pollution You Create Directly

This is the smoke coming out of your own chimney. In our cookie example:
• Gas used in your ovens
• Fuel burned by trucks you own

Real-world example:
If an oil & gas company burns fuel in its own refineries or runs company-owned ships — these are Scope 1 emissions.

⚡ Scope 2: Pollution from the Power You Buy

You didn’t burn the coal yourself, but you used electricity from a grid that did.
• If your cookie factory runs on electricity from a coal power plant — that’s Scope 2.
• You’re not directly emitting, but your energy choices matter.

Real-world example:
If a large tech company’s data centers run on electricity from fossil fuels, that shows up in their Scope 2 emissions.

🌍 Scope 3: Everything Else (And It’s Huge)

This is where things get messy — and real.
• Plastic packaging made by someone else? Scope 3.
• Emissions from trucks that deliver your cookies (that you don’t own)? Scope 3.
• Even the methane from cows that produced your milk chocolate? Scope 3.
• Oh, when your customers eat the cookies and throw away the wrapper — Scope 3 too.

💡 Scope 3 is usually more than 80% of a company’s total emissions.

Bombshell: Scope 3 Is Where the Real Problem Lies

Let’s compare:
• A large petroleum company’s Scope 3 emissions: 1.1 billion tonnes CO₂ per year (mostly from people burning the oil and gas they sell)
• All of Britain’s emissions (2023): ~400 million tonnes

👉 This company’s customers emit 3× more than an entire industrialized country!

That’s why focusing only on direct emissions is like mopping the floor while the tap is still running.

Why This Matters: You Can’t Solve What You Don’t Count

For years, companies have claimed to be “carbon neutral” while ignoring the massive pollution caused by their supply chains and customers.
That’s like a cookie brand saying, “We’re guilt-free!” while the cows, packaging factories, and delivery trucks are spewing emissions across the globe.

Enter: The SBTi (Science Based Targets Initiative)

The SBTi is like the global referee for corporate climate action. It helps companies set credible emissions targets aligned with the Paris Agreement.

The SBTi is now saying:

“You can’t ignore Scope 3 anymore.”
“If Scope 3 emissions exceed 40% of total emissions, companies must set reduction targets.”

The latest SBTi report proposes that companies must measure and reduce their Scope 3 emissions — or their climate targets won’t count.

Why? Because that’s where most emissions hide.

Some Powerful Comparisons

So What Can Be Done?

• Redesign products to lower lifecycle emissions
• Invest in greener supply chains — renewables, electric transport, regenerative agriculture
• Push consumers toward better choices with transparency
• Governments need to regulate, not just suggest

Final Takeaway

You can’t fix what you don’t count.
Scope 3 is where the bulk of emissions — and opportunity — lies. Any serious climate plan must start there.