The 3 levels of emissions

For a company to become “net zero", it has to know exactly what its carbon footprint is. This means that we cannot stop at having a statement of intent or a list of recommendations for the employee. Far beyond that, we must start a path of carbon accounting, starting by measuring and then drawing up a rigorous reduction plan in all areas of the business.

At the business level, the word framework is typically used, according to which there are emissions in 3 "scopes" or levels:

• Scope 1 emissions: the direct emissions created by the company’s activities, such as the exhaust emissions for an Uber driver.
• Scope 2 emissions: indirect emissions that come from electricity production, such as traditional energy sources that power company-owned buildings.
• Scope 3 emissions: indirect emissions that come from all other activities in which the company is involved in some way. These emission sources can be extensive and must be taken into account throughout your supply chain - the materials in your buildings, employees' business trips and the full life cycle of your products, including the electricity customers may consume when using the product.

As we can expect from the above, a company's Scope 3 emissions are usually much higher than Scope 1 and 2 emissions put together.

One of the most ambitious players in the tech industry in this field is Microsoft, which has set itself not only the goal of “net zero” by 2030 but also the goal of offsetting all emissions generated in the entire history of the company by 2050.

The company’s efforts are based on 7 principles to achieve the goal of “net zero”, which can be a good reference for any company starting on this path:

1. Start from a foundation of science and math. Continuously base net zero efforts on the best available science and the most accurate mathematics.
2. Take responsibility for your carbon footprint. They take responsibility for all emissions in the 3 scopes, so that by 2030 they can reduce them by more than half and then eliminate more carbon than they emit each year.
3. Invest in new carbon reduction and removal technology.
4. Empower customers around the globe. Develop digital technology to help suppliers and customers reduce their carbon footprints (scope 3).
5. Ensure effective transparency through an annual Environmental Sustainability Report, based on robust global reporting standards.
6. Support new public policy initiatives to accelerate opportunities for carbon reduction and elimination.
7. Recognize that employees will be the greatest asset in advancing innovation and creating new opportunities for them to contribute to the company's efforts.

More information and explanations is available in related articles such as: “Helping to achieve an energy efficient future” and “How companies contribute to the environment”. If you need personalized advice from an expert, contact us!