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Everyone around us is talking about carbon emissions and how they are trying to measure them to reduce their carbon footprint. But what are carbon emissions and why has it become so important to measure them?
In the fight against climate change, understanding and managing carbon emissions is crucial. Emissions are generally categorized into three scopes: Scope 1, Scope 2, and Scope 3. This categorization helps organizations measure and manage their greenhouse gas (GHG) emissions comprehensively.
Carbon emissions refer to the release of greenhouse gases (GHGs) into the atmosphere. These gases, primarily carbon dioxide (CO₂), contribute to the greenhouse effect, leading to global warming and climate change. Human activities such as burning fossil fuels, deforestation, and industrial processes are major sources of these emissions.
Scope 1 emissions are direct GHG emissions from sources owned or controlled by an organization, including:
Stationary Combustion: Emissions from boilers, furnaces, and turbines.
Mobile Combustion: Emissions from company-owned vehicles.
Process Emissions: Emissions from industrial processes.
Fugitive Emissions: Leaks from refrigeration and air conditioning systems.
Provides a clear picture of an organization’s direct environmental impact.
Involves improving energy efficiency to reduce emissions.
Encourages adopting cleaner technologies.
Scope 2 emissions are indirect GHG emissions from the consumption of purchased electricity, steam, heat, and cooling. Although the emissions occur at the source of production, they are attributed to the organization that uses the energy.
Highlights the significance of energy consumption choices.
Encourages opting for renewable energy sources.
Promotes improving energy efficiency.
Scope 3 emissions encompass all other indirect emissions that occur in the value chain of the reporting organization. These emissions are a result of activities from assets not owned or controlled by the organization but are relevant to its operations. Scope 3 is often divided into 15 categories, including:
Purchased Goods and Services: Emissions from the production of goods and services purchased by the organization.
Capital Goods: Emissions from the production of capital goods, such as machinery and buildings.
Fuel- and Energy-Related Activities: Emissions from the production of fuels and energy consumed by the organization, not included in Scope 1 or 2.
Upstream and Downstream Transportation and Distribution: Emissions from the transportation and distribution of goods.
Waste Generated in Operations: Emissions from the disposal and treatment of waste generated by the organization.
Business Travel: Emissions from employee travel for business purposes.
Employee Commuting: Emissions from employees commuting to and from work.
Use of Sold Products: Emissions from the use of products sold by the organization.
End-of-Life Treatment of Sold Products: Emissions from the organization's disposal and treatment of products sold.
Often the largest portion of an organization’s carbon footprint.
A holistic approach is required to address these emissions.
Involves collaboration with suppliers, customers, and other stakeholders.
Emphasizes considering the entire lifecycle of products and services.
Understanding and measuring all three scopes of carbon emissions is essential for a comprehensive view of an organization's environmental impact. Here’s how it can help your organization:
Environmental Impact Measuring carbon emissions helps understand an entity's contribution to climate change and identify pollution sources. This enables targeted mitigation efforts, protecting ecosystems, improving air quality, and supporting global climate initiatives.
Regulatory Compliance Accurately measuring emissions ensures compliance with government regulations, avoiding fines and penalties. This positions organizations as responsible and conscientious industry players.
Resource Efficiency Tracking carbon emissions highlights inefficiencies in energy use and processes. Organizations can optimize resource consumption and reduce waste, enhancing operational performance and sustainability.
Innovation and Competitiveness Measuring emissions drives innovation in sustainable practices and technologies. Organizations can lead in developing methods to lower their carbon footprint, stay competitive, and set industry standards.
Global Responsibility Measuring emissions aligns organizations with global climate initiatives, supporting international agreements like the Paris Agreement. This demonstrates a commitment to addressing climate change and contributing to a sustainable future.
Recently, we launched a new feature in our eBuyerAssist (eBA) software where companies can keep track of their suppliers’ carbon emissions, and items' carbon emissions, generate reports based on these, and also keep track of these on our interactive dashboard. Additionally, you can also view the CO2e value of every requisition or purchase order you create. This will help your organization make sustainable decisions and choose the right supplier for their purchasing activities.
In conclusion, measuring carbon emissions is not just a regulatory requirement; it’s a strategic imperative for any organization committed to long-term success. By understanding and managing their emissions, organizations can reduce environmental impact, optimize resources, and drive innovation. Eyvo can help!
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