ESG Scope 1 Explained

By Jeff Dyra | May 19, 2023

When discussing how ESG can affect businesses, there are many things to keep in mind.

After a business commits to their ESG goal, they need to consider what steps will help them reach that goal and fulfill the required ESG mandates. The ESG mandates can be broken down into three different categories or ‘Scopes’ that are used to classify different types of emissions.

Emissions can come from direct or indirect sources. Therefore, it is important to understand each scope to ensure you meet any net zero or carbon-neutral goal because you can’t manage what you can’t measure!

Let’s focus on Scope 1 and how companies can meet their Scope 1 ESG pledge.

Scope 1 emissions are any direct emissions from a business’s everyday operations. These are usually the easiest to manage because the organization has direct control over the source of the emissions, and they are on-site.

Examples of Scope 1 Emissions Include:

Fuel combustion emissions from a boiler
Emissions from machinery used in manufacturing processes
Gas leaks in refrigerant lines
Fuel burned from company vehicles

The examples above lead to increased greenhouse gas emissions and may contribute to a company failing to reach their ESG goal. The good news is that companies can easily and affordably change scope 1 emissions.

Determining where to start reducing emissions can take time and effort. While many utilities offer assessments to identify and suggest ideas to reach ESG goals, a more personalized approach can sometimes be better.