Definitions

This wiki paged is used to provide a definition of some of you terms and concepts you might come across on the company pages.

Emissions

GHG emissions

Greenhouse gas (GHG) emissions are all the different gasses that absorb heat (infrared radiation) emitted from Earth, and consequently reflect it back onto Earth’s surface hence contributing to the greenhouse effect, more commonly known as global warming. This includes carbon dioxide (CO2), methane (CH4), and water vapor, as well as nitrous oxides and surface-level ozone. As a result of certain human activities such as the emission of fossil fuels, the greenhouse effect has become stronger over time. This is because there is now more carbon dioxide in the Earth’s atmosphere. For more in-depth reading, refer to the following source.

Increased CO2 is most frequently attributed as being the main cause of worsened human-induced global warming. However, it is vital to be aware that there are other, non-CO2, substances that are equally as polluting. In the aviation industry for instance, persistent contrails, aviation induced cirrus, and nitrogen oxides (NOx) contribute more significantly to global heating than ‘just’ CO2 emissions. NOx for example contributes to ozone formation, causing smog in and near cities and other areas of the country.

Scope 1

According to the GHG emissions protocol, scope 1 emissions entail all the GHG emissions that occur from sources that are

owned or controlled by the company, for example, emissions from combustion in owned or controlled boilers, furnaces, vehicles, etc.; emissions from chemical production in owned or controlled process equipment.

However, direct CO2 emissions that occur from the combustion of biomass are not included in scope 1, but have to be reported separately. Additional GHG emissions that are not covered are Chlorofluorocarbon (CFCs) and NOx, despite these gasses having large ozone-depleting effects.

For financial institutions, scope 1 includes the emissions on loans and investments.

Scope 2

The GHG emission protocol states that scope 2 accounts for the:

Generation of purchased electricity consumed by the company. Purchased electricity is defined as electricity that is purchased or otherwise brought into the organizational boundary of the company. Scope 2 emissions physically occur at the facility where electricity is generated.

According to the World Resources Institute, approximately 40% of the world’s GHG emissions come from energy generation, and about half of that is consumed by industrial or commercial users.

Some ways to cut scope 2 emissions include switching to a low-carbon energy supplier - one that invests in building new renewable power infrastructure.

Scope 3

The GHG emissions protocol classifies scope 3 emissions is an optional reporting category. They define scope 3 accordingly:

Scope 3 emissions are a consequence of the activities of the company, but occur from sources not owned or controlled by the company. some examples of scope 3 activities are extraction and production of purchased materials; transportations of purchased fuels; ad use of sold products and services.

For scope 3 emissions, a distinction can be made between upstream activities, and downstream activities. The first referring to "indirect GHG emissions related to purchased or acquired goods and services" and the latter to "indirect GHG emissions related to sold goods and services". Additionally, due to its broadly encapsulating nature, scope 3 is categorized into 15 distinct categories.

In 2011, the GHG protocol released a Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard to aid companies in preparing and reporting their GHG emissions inventory including scope 3 emissions.