Scope 1, 2, and 3 Emissions
Achieve compliance with global emissions standards to elevate your competitiveness and help mitigate climate change.
Key Resources
Essential Details
Greenhouse gas (GHG) scope 1, 2, and 3 emissions are categorizations defined by the Greenhouse Gas Protocol, a widely used international accounting tool that provides standards for measuring and managing emissions. These scopes are crucial for organizations seeking to understand and reduce their environmental impact.
Importance in the Automotive Industry
The application of these standards in the automotive industry is particularly important due to the sector’s significant environmental impact, from manufacturing processes to the end-use of products. Managing and reducing GHG emissions is crucial due to several factors:
- Regulatory compliance — many countries impose strict environmental regulations requiring manufacturers to reduce the emissions associated with their products and operations
- Consumer demand — increasingly, consumers consider the environmental impact of their vehicles as a significant factor in their purchasing decisions
- Innovation and competitiveness — reducing emissions often drives innovation, such as the development of more efficient engines, hybrid and electric vehicles, and advanced manufacturing processes that lower the carbon footprint
- Corporate responsibility — there is a growing expectation for companies to demonstrate corporate social responsibility by actively reducing their environmental impact
AIAG offers information and resources you can use to meet emissions standards in each scope.
Scope 1: Direct Emissions
These emissions occur from sources that are controlled or owned by an organization.
Examples in the automotive industry:
- Manufacturing facilities — emissions from the operation of facilities and plants where vehicles and parts are manufactured, including the combustion of fuels for heat and power
- Company vehicles — emissions from vehicles owned or leased by the company, used for business operations such as transporting parts or personnel
Scope 2: Indirect Emissions
These emissions are associated with the purchase of electricity, steam, heat, or cooling. Although scope 2 emissions physically occur at the facility where they are generated, they are accounted for in an organization’s GHG inventory because they are a result of the organization’s energy use.
Examples in the automotive industry: Electricity use — the automotive industry consumes large amounts of electricity, particularly in manufacturing plants. This includes the use of electricity for machinery, assembly robots, lighting, and HVAC systems.
Scope 3: Uncontrolled Emissions
These emissions are the result of activities from assets not owned or controlled by the reporting organization, but that the organization indirectly affects in its value chain.
Examples in the automotive industry:
- Supply chain — emissions generated from the production of materials and parts supplied to the manufacturer, such as steel, plastics, and electronic components
- Product use — the largest uncontrolled emissions contributor for many automakers, this includes emissions from the fuel or energy used by the vehicles they sell, over the lifetime of those vehicles
- End of life — emissions involved in vehicle disposal or recycling
- Business travel and employee commuting — emissions from travel done for business purposes and the commuting habits of employees
- Transportation and distribution — emissions from the transport of materials and finished products, including shipping of parts from suppliers and delivery of new vehicles to dealerships