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.

adithya venkatesan
head of brand
logophile. curious. scuba diver. paraglider. stand for ‘abundance’ — a belief that climate action must scale with industry, not against it. that invention and infrastructure, growth and green goals, must move in lockstep.
all co₂ emissions from a company is categorised into scope 1, 2 and 3. this gives us a framework to understand how to reduce co₂ emissions across all its operations. reducing these emissions is our only chance to limit the dire effects of global warming, and keeping emissions under 1.5 degrees.
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 their 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 the 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, that’s scope 3 too.
here’s the kicker:
💡 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: Over 1.1 billion tonnes co₂ per year (mostly from people burning the oil and gas they sell).
• all of britain’s emissions (2023): Just 400 million tons.
👉 this company’s customers emit 3x 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 spoken about being “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 wants companies to do more on their scope 3 emissions.
“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
company/product | scope 3 emissions | context |
---|---|---|
large O&G org | 1.1 billion tonnes | ~3x the UK’s annual emissions |
large F&b org | 93 million tonnes | same as all of Portugal |
large e-com org | 62 million tonnes | more than sweden emits yearly |
large tech org | 23 million tonnes | even though their operations are 100% renewable |
large airline org | 30 million tonnes | almost 4x their scope 1+2 |
so what can be done?
• companies need to 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
if we only ask companies to clean up their own backyard (Scope 1), while their customers and suppliers burn down the neighbourhood (Scope 3), we’re not solving climate change. We’re effectively just shifting blame.
scope 3 may be invisible, but it’s the biggest elephant in the climate room.
and unless we fight Scope 3 emissions, we will fail our climate goals.