Scope 1, 2 & 3 Emissions: A Path to Net Zero

Why Do Scopes Matter?

Categorising carbon emissions into three categories allows businesses to:

Identify and address both direct and indirect emissions.
Develop clear, targeted reduction strategies.
Improve transparency and accountability in emissions reporting.
Align with global sustainability standards and regulations.

Scope 1: Eliminating Direct Emissions

Scope 1 emissions are greenhouse gases that come directly from an organisation’s owned or controlled sources. These include emissions from burning fossil fuels for heating, industrial processes, and company-owned vehicles. In an ideal world, Scope 1 emissions would not exist—businesses would eliminate them by replacing fossil fuel-dependent systems with clean alternatives.

Scope 1, Scope 2, Scope 3 — Image Source: Design Conformity

Common Scope 1 Sources:

Gas boilers used for heating.
Internal combustion engine (ICE) company vehicles.
On-site industrial machinery using fossil fuels.

The Solution: Electrification

To eliminate Scope 1 emissions, businesses must replace direct purchases of fossil fuel-based systems with clean energy solutions. Converting gas heating to electric heat pumps, switching from ICE vehicles to electric vehicles (EVs), and integrating electric alternatives into industrial processes significantly reduce emissions.

scope 1 2 and 3 emissions — Image Source: reTyre

Organisations and companies that track and measure their energy use can identify emission hotspots and uncover cost reduction opportunities by optimising their own operations. Transitioning to low-carbon solutions also enhances sustainability performance and aligns with the Greenhouse Gas Protocol’s emission reduction targets.

OAK Network helps organisations track energy usage, measure primary data, and create data-driven strategies to eliminate direct emissions from controlled sources.

Scope 2: Reducing Indirect Emissions from Purchased Energy

Scope 2 emissions arise from the electricity, gas, heating, cooling, or steam a business purchases from external providers. While organisations don’t produce these emissions directly, they are indirectly responsible for the energy they consume.

scope 1, 2 & 3 emissions — Image Source: Anthesis

Key Sources of Scope 2 Emissions:

Electricity used to power offices, factories, and facilities.
Purchased district heating or cooling systems.

The Solution: Green Energy & Efficiency

To reduce Scope 2 emissions, businesses should transition to renewable energy sources such as wind, solar, or hydro power. By converting direct purchases of grid electricity to cleaner alternatives, companies can significantly reduce their total emissions.

Enhancing energy efficiency through smart monitoring, LED lighting, and upgraded equipment helps optimise energy use and reduce waste. Analysing energy performance across multiple sites allows organisations to identify emission hotspots and improve their sustainability performance.

OAK Network provides tools to measure electricity consumed, track energy efficiency improvements, and explore renewable energy transition strategies.

Scope 3: Cutting Value Chain Emissions

Scope 3 emissions encompass all other indirect emissions in a company’s value chain of operations, both upstream and downstream. These often account for the largest share of an organisation’s carbon footprint and are also the hardest to measure and control.

Key Scope 3 Sources:

Emissions from manufacturing and transporting purchased goods.
Business travel and employee commuting.
End-of-life disposal of sold products.
Emissions from leased assets or investments.

The Solution: Supply Chain Engagement & Circular Practices

Reducing Scope 3 emissions requires a comprehensive strategy that considers the entire value chain. Organisations must work closely with suppliers to encourage low-carbon production methods, optimising purchased goods and capital goods.

By improving logistics and prioritising sustainable transport, businesses can address emissions from business travel and employee commuting. Circular economy strategies, such as product take-back programs and waste reduction initiatives, help mitigate downstream activities that contribute to many businesses' total emissions. Companies should also track emissions from leased assets, identifying opportunities for further reductions.

OAK Network enables organisations to positively engage with suppliers, measure Scope 3 emissions, and assess sustainability performance. With accurate data on the company’s environmental impact, businesses can develop science-based targets to reduce emissions across the value chain in all three scopes.

Taking Action: The Role of Data-Driven Decision Making

Eliminating Scope 1, reducing Scope 2, and optimising Scope 3 emissions all require data-driven insights. Without accurate monitoring and reporting primary data, businesses struggle to implement effective carbon reduction strategies.

OAK Network provides:

Real-time tracking of energy use and emissions.
Customised recommendations for electrification and renewable energy adoption.
Tools to measure and report emissions in compliance with regulatory standards.

Conclusion: Moving Toward a Net Zero Future

The ultimate goal is to eliminate Scope 1 emissions, reduce Scope 2 through green energy adoption, and minimise Scope 3 emissions by transforming supply chains. While this transition takes time, the right data and strategy make it achievable.

At OAK Network, we empower organisations with the tools to take control of their emissions. Ready to make a change? Explore our platform or contact us today to learn how we can help you meet your sustainability and climate change goals.