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 | Emissions From | Leadership Case | Key Initiatives |
|---|---|---|---|---|
Scope 1 | Direct emissions from owned or controlled operations (e.g., fuel combustion, company vehicles). | Company facilities
Company vehicles | Shell | Electrified vehicle fleet |
Adopted methane detection technologies to reduce leaks | ||||
General Motors (GM) | Transitioned manufacturing facilities to renewable energy | |||
Scaling production of electric vehicles (EVs) | ||||
Scope 2 | Indirect emissions from purchased electricity, heating, or cooling. | Purchased energy
Purchased heating, cooling and steam | Microsoft | Achieved 100% renewable energy use globally |
Enhanced data center energy efficiency | ||||
Walmart | Transitioned retail stores and warehouses to renewable energy | |||
Launched Project Gigaton to optimize supplier energy use | ||||
Scope 3 | Upstream Emissions: Indirect emissions from the supply chain, including raw material extraction, manufacturing, and supplier activities. | Employee commuting
Transport & distribution
Leased assets
Business Travel
Waste | IKEA | Encouraged suppliers to switch to renewable energy |
Launched recycling and resale programs for furniture | ||||
Nike | Partnered with suppliers to adopt energy-efficient practices in suppliers’ factories | |||
Sourced recycled polyester and other low-carbon materials | ||||
Scope 3 | Downstream Emissions: Indirect emissions from product use, distribution, and disposal by consumers. | End of life treatment
Processing of sold product
Franchises
Use of sold product | Amazon | Electrified delivery fleets with EVs |
Implemented sustainable packaging | ||||
Patagonia | Encourage Product Repair and Reuse through its Worn Wear program | |||
Patagonia educates customers on sustainable purchasing and proper product care to reduce environmental impact. | ||||
Unilever | 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.
