As businesses face mounting pressure to credibly report their greenhouse gas (GHG) emissions, getting a grip on scope 1 emissions is paramount. Scope 1, which covers direct emissions from operations fully owned or controlled by your company, forms the core of any carbon accounting and reporting exercise.
This guide walks you through the key steps and considerations for accurately measuring and reporting your organization's scope 1 emissions in line with best practices. Let's dive in!
What are Scope 1 Emissions?
Under the GHG Protocol Corporate Standard, scope 1 emissions are defined as those releases of GHGs into the atmosphere that occur from sources that are owned or controlled by the company. This includes:
Stationary Combustion: Emissions from burning fuels in owned/controlled equipment like boilers, furnaces, turbines, etc.
Mobile Combustion: Emissions from combusting fuels in transportation assets like cars, trucks, ships, planes, etc.
Process Emissions: Emissions from physical or chemical processes like manufacturing cement, aluminum, ammonia production, etc.
Fugitive Emissions: Unintentional releases like equipment leaks, AC/refrigerant losses, methane from coal mines, etc.
Scope 1 emissions must be calculated on a carbon dioxide equivalent (CO2e) basis, including the seven main GHGs covered by the Kyoto Protocol.
Setting Organizational Boundaries
The first step is determining your organizational boundaries - that is, the operations owned/controlled by your company that need to be included in the emission calculations. The GHG Protocol allows two approaches:
Equity Share: Account for emissions from operations according to your company's equity stake in them.
Operational Control: Account for 100% of emissions from operations over which you have control.
Most companies prefer using the operational control approach as it aligns with the existing operational policies and boundaries.
Identifying Emission Sources
Next, you'll need to identify all scope 1 emission sources across your operations. Common examples include:
- Combustion equipment like boilers, engines, flares, incinerators
- Owned/leased vehicle fleets like trucks, company cars, etc.
- Manufacturing process equipment like blast furnaces, chemical reactors, etc.
- Venting and flaring activities in oil/gas production
- Refrigeration and air conditioning equipment
- Fire suppression and other fugitive equipment leaks
Creating a comprehensive list of emissions sources is crucial as any missed sources can significantly understate your total footprint.
Collecting Data on Activities
To calculate emissions, you'll need robust data on each activity that releases GHGs during the reporting period. Examples include:
- Fuel consumption: Types and quantities of fuels combusted, by equipment/vehicle type
- Process inputs/outputs: Data on materials consumed/produced in industrial processes
- Equipment/facility details: Data on age, technology, operations of emitting equipment
- Ownership information: Time periods of ownership/operational control of sources
Establishing processes and responsibilities for consistent data collection from operational units/facilities is vital.
Calculating Emissions Using Emission Factors
With activity data in hand, emission factors are used to convert it into GHG emissions. Factors are typically provided in official sources like:
- National/regional government agencies: EPA, EU, IPCC guidelines, etc.
- Non-profit organizations: GHG Protocol, industry/sector sources
- Third-party databases: Commercial life cycle databases
The exact emissions are calculated as:
Activity Data x Emission Factor x Global Warming Potential = Carbon Dioxide Equivalent (CO2e) Emissions
Factors are specified by fuel type, process material, equipment type, etc. You must ensure they align with your operations and selected GHGs/GWPs.
Ensuring Quality and Completeness
To deliver credible disclosure, it's crucial to implement quality management procedures per GHG Protocol guidance:
- Ensure completeness by accounting for all boundary sources/activities
- Continuously improve estimates and data sources as better information emerges
- Apply consistent methodologies across reporting periods and sources
- Extensively document procedures, sources, calculations, and relevant assumptions
- Establish stringent data and information management systems
- Validate and verify data through internal/external experts and assurance
The Road to Robust Scope 1 Reporting
As companies gear up for increasing climate disclosure requirements like CSRD and ESRS, thoroughly understanding and reporting scope 1 emissions lays the foundation. While scope 1 reporting seems simple in theory, the details can be quite nuanced.
Organizations need to establish robust carbon accounting processes, invest in the right skillsets, enable smart data management systems, and prioritize quality and verification. Those that master their direct emissions sources will be better positioned to advance their decarbonization transition. Stay tuned for our upcoming guides on navigating scope 2 and 3 emissions!