How do direct emissions from operations contribute to a company's overall emissions?

Direct emissions from operations, also known as Scope 1 emissions, are a significant part of a company's overall emissions. These emissions come from owned assets such as buildings, equipment, or vehicles that burn fuel. Although they are typically less than indirect emissions (Scope 2 and Scope 3), they are directly under the company's control and can be reduced by implementing energy-efficient practices and using cleaner fuels.

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Scope 1 covers "direct emissions" from operations, like owned assets such as buildings, equipment or vehicles that burn fuel. Scope 2 covers indirect emissions created from purchased energy to power buildings and vehicles. Scope 3 includes all indirect emissions associated with upstream and downstream operations. This is usually the largest contributor, typically 90% of a company's emissions. Scope 3 Upstream comes first in the value chain and covers emissions created by production activities like material or goods procurement, services purchased, or employee commutes and business travel. Scope 3 Downstream emissions are those that come from the transportation of goods to customers, or the use of sold products and the waste they create.

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Sustainability Report (Part 2)

Need to report your sustainability efforts to key stakeholders? Most companies make ESG reports public, and public companies may soon be required by l...

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