What are Scopes 1 and 2 in a GHG inventory?

⚡Scope 1: Direct emissions

Scope 1 includes all emissions directly generated by the company’s activities. Under the French regulatory methodology, these emissions are broken down as follows:

5 subcategories of direct emissions

• Stationary combustion sources (heating, etc.);
• Mobile combustion sources (emissions from the use of company vehicles);
• Non-energy-based processes (industrial processes);
• Leaks (refrigerant leaks—air conditioning, refrigerator, or cold storage room);
• Biomass (soil and forests).

🔥Scope 2: Indirect emissions related to energy

Scope 2 emissions refer to indirect greenhouse gas (GHG) emissions associated with a company’s purchased energy consumption. Although these emissions depend on energy suppliers and the energy mix they use, they remain a key strategic lever for reducing the company’s overall carbon footprint.

🆚Key differences between Scopes 1 and 2:

• Control: Scope 1 is under direct control, while Scope 2 depends on the energy supplier and its geographic location.
• Strategy: Reducing Scope 1 emissions involves improving internal equipment, while Scope 2 emissions require informed decisions regarding energy consumption practices—particularly energy conservation—and the selection of energy contracts, such as green energy contracts.

Why are Scopes 1 and 2 crucial for businesses?

📉What data should be taken into account?

For any company, the first step in a strategy to reduce greenhouse gas (GHG) emissions is to accurately identify its main sources of emissions.

• Calculating your Scope 1 emissions means quantifying your consumption of fossil fuels, such as natural gas, gasoline, diesel, or heating oil.
• Calculating Scope 2 emissions involves quantifying an organization’s electricity consumption (in kWh) or its purchases of cooling and heating from utility grids.

⚖️Comply with regulations

New European requirements are forcing organizations to rethink their energy models and publish detailed reports on their carbon footprint. Through GHG reporting, companies are becoming aware of their dependence on fossil fuels—an essential first step toward meeting the transparency requirements imposed by current regulations.

Scope 1 and 2 emissions must be reported in accordance with the various applicable regulatory frameworks, including:

• ISO 14064-1,
• the GHG Protocol,
• France's regulatory GHG inventory.

🤝Taking Stakeholder Expectations into Account

Today, consumers, investors, and business partners are demanding greater transparency regarding environmental commitments. By highlighting their efforts to reduce Scope 1 and Scope 2 emissions, companies:

• They are asserting their responsible leadership, positioning themselves as committed and proactive stakeholders in the face of the climate crisis
• They attract investors who prioritize environmental, social, and governance (ESG) criteria, thereby becoming strategic choices in a world where performance goes hand in hand with sustainability.

🔎According to an ESG survey conducted in 2023 by BNP Paribas: “76% of investors believe that climate change and decarbonization are factors important enough to influence their investment strategy.”

According to a 2021 survey conducted by IFOP in France: “More than 8 out of 10 French people believe it is important for large French companies and multinational corporations to make a commitment.”

🚀Laying the Groundwork for Scope 3 Action

Scope 3, which encompasses emissions associated with the entire value chain (suppliers, transportation, product use, etc.), often accounts for the largest portion of an organization’s carbon footprint. However, addressing this challenge without first bringing Scopes 1 and 2 under control would be counterproductive.

Rigorous management of Scope 1 and 2 emissions is not only a strategic prerequisite—it also provides a solid approach to addressing the complex challenges of Scope 3. It further helps establish internal best practices and fosters a company-wide commitment to reducing greenhouse gas emissions.

🔎A company that reduces its energy consumption (Scope 2) inspires its partners to follow suit, triggering a domino effect that helps reduce Scope 3 emissions.

How can we reduce Scope 1 and Scope 2 emissions?

To reduce their carbon footprint and meet growing environmental requirements, companies must take concrete and strategic actions. Reducing Scope 1 and 2 emissions requires specific measures, supported by effective tools.

💡Reducing Direct Emissions (Scope 1)

Direct emissions—those from sources owned or controlled by the company (such as emissions from fossil fuels consumed on-site or fuels used by the vehicle fleet)—can be significantly reduced through several measures:

Transition to Sustainable Transportation

• • Adopting electric vehicles for corporate fleets.
  • Install charging infrastructure at these sites to facilitate this transition.
  • Encourage eco-driving through employee training programs.

🔎Note: According to the Ministry of Ecological Transition, over its entire life cycle, an electric vehicle emits 2 to 6 times less CO2 than a conventional internal combustion engine vehicle.

Optimization of Industrial Processes

1. • Identify and reduce process fugitive emissions using advanced detection technologies (e.g., sensors, drones).
   • Upgrade equipment to improve its performance and reduce GHG emissions.

Energy Efficiency of Buildings and Infrastructure

• • Improve thermal insulation to reduce the need for heating and air conditioning during heat waves.
  • Perform proactive maintenance on equipment to prevent energy waste.

🔌Optimize energy consumption (Scope 2)

Scope 2 emissions primarily relate to the consumption of purchased energy used to power the company’s operations (electricity, district heating, and cooling). Key metrics include:

1. Transition to Renewable Energy
   • Opt for energy supply contracts that are 100% green (solar, wind, hydroelectric).
   • Invest in clean infrastructure, such as on-site solar panels.
2. Reduction in Electricity Consumption
   • Install LED lighting and energy-efficient equipment.
   • Suivre le signal Ecowatt pour décaler les usages non essentiels lors des pics de consommation.
   • Raise employee awareness of eco-friendly habits (e.g., turning off unused devices, reducing elevator use).

📊Implementation of monitoring and reporting tools

Measuring and monitoring emissions are essential for effectively implementing a reduction strategy. Companies must:

1. Quantify their GHG emissions and implement measures to reduce them
   • By adopting digital tools capable of collecting, analyzing, and visualizing emissions data.

    

2. Perform regular calculations and adjust strategies
   • Establish a reporting schedule to assess progress.
   • Conduct energy audits to identify sources of waste and adjust action plans.
   • Set ambitious yet achievable goals, drawing on recognized standards such as the SBTi (Science-Based Targets initiative).