Why would a business measure its carbon emissions?

Three reasons account for most engagements: understanding the organisation’s environmental impact voluntarily, meeting an obligation imposed by legislation, or satisfying a requirement passed down by a supplier or customer.

What is the difference between Scope 1, 2 and 3 emissions?

Scope 1 covers direct emissions from sources the organisation owns or controls. Scope 2 covers emissions from the generation of purchased electricity, heating and cooling. Scope 3 covers all other indirect emissions across the value chain, such as suppliers, freight and business travel.

Do small businesses need to report emissions?

Many are not required to by law, but are increasingly asked to by larger customers as part of supply chain reporting. Being able to answer that request accurately is often the reason a smaller business starts measuring.

Specialist practice

Carbon accounting

Measuring the greenhouse gas emissions your organisation produces across its operations and supply chain — and reporting them credibly.

Carbon accounting is the process of measuring the carbon dioxide equivalent of the greenhouse gas emissions an organisation produces throughout its operations and supply chain.

Businesses take it on for different reasons — some voluntarily, to understand their environmental impact; some because legislation requires it; and increasingly because a supplier or customer has made it a condition of doing business. Our carbon accounting unit is trained to support reporting across all three scopes.

The three scopes

What gets counted, and where

Scope 1

Direct emissions

Greenhouse gas emissions produced directly by the organisation — fuel burned in vehicles and plant you own or control.

Scope 2

Purchased energy

Emissions associated with generating the electricity, heating and cooling the organisation buys and consumes.

Scope 3

Indirect emissions

All other indirect emissions across the value chain — suppliers, freight, business travel and waste.

Method

How a measurement is built

Six steps, in order. The sequence matters — decisions made at step one determine what the final number means.

01
Determine the carbon footprint to be measured, and define what is in and out of scope.
02
Identify the sources of emissions across Scope 1, Scope 2 and, where relevant, Scope 3.
03
Select the calculation approach appropriate to the organisation.
04
Collect the underlying data and choose the applicable emission factors.
05
Apply the relevant calculation tools.
06
Consolidate the results into an overall carbon footprint.

Common questions

Questions we are asked most

Why would a business measure its carbon emissions?: Three reasons account for most engagements: understanding the organisation’s environmental impact voluntarily, meeting an obligation imposed by legislation, or satisfying a requirement passed down by a supplier or customer.
What is the difference between Scope 1, 2 and 3 emissions?: Scope 1 covers direct emissions from sources the organisation owns or controls. Scope 2 covers emissions from the generation of purchased electricity, heating and cooling. Scope 3 covers all other indirect emissions across the value chain, such as suppliers, freight and business travel.
Do small businesses need to report emissions?: Many are not required to by law, but are increasingly asked to by larger customers as part of supply chain reporting. Being able to answer that request accurately is often the reason a smaller business starts measuring.

Carbon accounting partner

Trevor Fair

To talk about how your business can start reporting its emissions, send us a message and we will put you in touch with Trevor directly.