What are GHG Emissions?
Greenhouse Gas (GHG) emissions are gases that trap heat in the Earth’s atmosphere. Main Green House Gases are CO₂, CH₄, N₂O and Fluorinated Gases as mentioned below:
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How does Global Warming happen?
The Earth absorbs solar radiation and re-radiates it back into the atmosphere. Excess Green greenhouse gases in the atmosphere trap this heat and do not let it escape leading to rising temperatures on the Earth’s surface and global warming. Excess Green House Gases are induced by Human activities which is driving climate change across the globe.
Emissions Categorization for Businesses
GHG emissions are categorized into three scopes (Scope 1, 2 & 3) to track and manage their sources under corporate accounting frameworks like GHG Protocol. Following are different emissions covered under different scopes: The Following examples showcase how forward-thinking organizations are driving impactful initiatives to curb emissions across all three scopes.
| Scope | Definition | Key Initiatives taken to reduce emissions |
|---|---|---|
Scope 1 | Direct emissions from owned or controlled operations (e.g., fuel combustion, company vehicles). | Shell implemented energy-efficiency and electrification measures across its assets and introduced methane detection technologies to reduce leaks in its operations. Additionally, they are running two flagship Carbon Capture and Storage plants—Quest (Canada) and Gorgon (Australia)—that have already sequestered a combined > 18 million t CO₂. |
General Motors is transitioning its manufacturing facilities to renewable energy as part of its broader sustainability strategy. To support this shift, the company has implemented a company-wide Energy Management System (EMS) that enables continuous efficiency improvements and supports fuel-switching projects—such as recovering waste heat from landfill-gas generators. | ||
Scope 2 | Indirect emissions from purchased electricity, heating, or cooling. | Microsoft decarbonised its operations by purchasing 100% renewable energy globally. Also enhanced its data centre energy efficiency. |
Walmart transitioned their retail stores and warehouses to renewable energy and implemented energy-efficient technologies such as LED lighting, HVAC system upgrades, and advanced refrigeration systems across their operations. | ||
Scope 3 | Upstream Emissions: Indirect emissions from the supply chain, including raw material extraction, manufacturing, and supplier activities. | IKEA encouraged its suppliers to transition to renewable energy by providing roadmaps to phase out coal and fossil oil at supplier sites. Six of its eight coal-using textile suppliers are set to eliminate coal by FY25, with the remaining two by FY27. Additionally, forklift electrification is currently underway |
Nike partnered with its suppliers to boost energy efficiency, integrate recycled polyester and other low-carbon materials, and cut freight emissions by using sustainable biofuels for ocean shipping and electric vehicles for last-mile delivery. Through its Supplier Climate Action Program (SCAP), the company also helps Tier 1 and Tier 2 factories set science-based climate targets, secure on- and off-site renewable electricity, and transition to lower-carbon thermal energy. | ||
Downstream Emissions: Indirect emissions from product use, distribution, and disposal by consumers. | Amazon eliminates its footprint by shipping many items in their own product packaging and slashing single-use plastics, loading Echo and Fire TV devices with an ultra-efficient Low-Power Mode and matching their lifetime energy use with new wind- and solar-generated electricity. Returned products are kept in circulation through the “Second Chance” repair-and-refurbish program, and last-mile emissions drop further as Amazon swaps diesel vans to electric-vehicle fleet. | |
Patagonia encouraged product repair and reuse through its Worn Wear program and educates customers on sustainable purchasing and product care to reduce their environmental impact. | ||
Unilever designs energy- and water-efficient products, such as low-temperature detergents and personal care items that require less water to rinse, helping reduce energy use, water consumption, and associated emissions during consumer use. | ||
By taking bold, measurable steps across all three scopes, companies position themselves not only as industry leaders but also as champions of a greener, more resilient future.
