Scope 1-2-3 Emissions: What’s the Difference?
Every industry, including transportation, agriculture, electricity, construction, and manufacturing, contributes to carbon emissions globally. Despite the efforts to use greener tactics and renewable energy sources, running a business still produces certain outputs that harm the environment.
There are ways to reduce and counteract some of that output, but you first need to establish where your company’s carbon emissions come from.
Just as each industry and company functions differently, each company’s associated logistics emissions come from a variety of different sources.
In the sustainability world, an important term to know when talking about types of emissions is “scope”. In this article, we’re diving in to define the different types of scope: Scope 1, scope 2, and scope 3 emissions, and where Wayfindr (formerly CBIP Logistics) stands in terms of the three types.
Explore more: How Wayfindr’s green logistics model fits into a carbon-neutral future.
Scope 1 emissions
Scope 1 emissions encompass any carbon emissions that result from a company’s direct operations.
Scope 1 emissions include emissions from sources that are physically owned and operated by the company, like company-owned vehicles and other company facilities.
Typically, companies that own their own sources of manufacturing or transportation have large scope 1 categorized emissions. Big brands in the food and beverage and consumer products industries are some of the largest Scope 1 contributors.
Wayfindr’s sustainability report, based on rigorous audits, found that 0% of Wayfindr’s emissions are scope 1. This is due to the fact that Wayfindr’sworks with other distribution and logistics partners to move goods around the world.
Wayfindr’s work doesn’t result in direct emissions from buildings or vehicles that are owned by the company.
Scope 2 emissions
Scope 2 emissions encompass any carbon emissions from indirect sources.
Scope 2 emissions include emissions from sources like
- Electricity
- Heating
- Cooling
- Steam
Companies with large warehouses, stores, or computers/data centers that use a lot of energy often have large scope 2 emissions.
Only 0.02% of Wayfindr’s total emissions in 2021 came from scope 2 sources.
Scope 3 emissions
Scope 3 emissions include all other indirect emissions. These emissions come from a company’s supply chain, and they are often the largest portion of a company’s emissions.
Scope 3 emissions include emissions from sources such as
- Transportation and distribution
- Purchased goods and services
- Capital goods
- Operational waste
- Employee commuting
- Leased assets
- Business travel
- Processing of sold products
- Use of sold products
- End-of-life of sold products
- Investments
Companies with high scope 3 emissions include oil and gas companies and technology companies. All of the activities in these sectors have high emissions coming from indirect sources in their supply chains, as well as emissions from the use of products sold.
Though Wayfindr’s emissions scope 3 emissions are not high compared to other companies, almost all (99.98%) come from this area.
Summary: What is the difference between scope 1 2 and 3 emissions
| Category | Scope 1 (Direct Emissions) | Scope 2 (Indirect Energy Emissions) | Scope 3 (Other Indirect Emissions) |
|---|---|---|---|
| Definition | Emissions from sources that are owned or directly controlled by the company | Emissions from the consumption of purchased electricity, heating, or cooling | Emissions from activities not owned or controlled by the company but related to its operations |
| Emission Sources | – Company-owned vehicles- On-site fuel combustion- Manufacturing facilities | – Electricity usage- Heating or cooling- Steam purchased from utilities | – Logistics providers- Supplier emissions- Employee commuting- Waste disposal- Product use/end-of-life |
| Responsibility | Company directly using/controlling the emission source | Company paying for the energy consumed | Supply chain stakeholders (vendors, transporters, consumers, etc.) |
| Level of Control | High – full control | Medium – some influence via provider choices | Low – requires collaboration and third-party data |
| Logistics Example | Owned delivery trucks using diesel | Electricity powering rented fulfillment centers | Third-party warehousing, shipping, or manufacturing operations |
| Typical Share of Emissions | Often low to moderate depending on industry | Usually low | Highest share (often 70–90% of total emissions) |
| Reduction Strategies | – Electrify fleet- Optimize fuel efficiency | – Switch to renewable energy- Improve building energy efficiency | – Partner with green 4PL service providers – Audit and optimize suppliers – Track product lifecycle impact |
The importance of understanding emissions
Before we can lower carbon emissions, we must first understand where they come from. Measuring emissions is a crucial first step in the journey to reducing them.
Since Wayfindr has collected the data, we know that scope 3 emissions are where we need to focus to lower our carbon impact. We are a carbon-neutral company, and we are working to create emissions-reduction targets and strategies.
If you are looking for a green logistics partner that takes sustainability seriously, contact us today!
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