Why Emissions Reporting Exists
Organizations measure and report their greenhouse gas emissions so they can manage them. Without a clear accounting of where emissions come from, there is no way to set reduction targets or track progress. Governments, investors, customers, and business partners increasingly expect this transparency.
The GHG Protocol Framework
The Greenhouse Gas Protocol is the most widely used standard for emissions accounting. Developed by the World Resources Institute and the World Business Council for Sustainable Development, it divides an organization’s emissions into three scopes.
Scope 1: Direct Emissions
These are emissions an organization produces directly โ burning fuel in its own vehicles, running furnaces in its factories, or heating its buildings with natural gas. The organization owns or controls the source, so these are the most straightforward to measure and reduce.
Scope 2: Purchased Energy
Scope 2 covers emissions from the electricity, steam, heating, or cooling that an organization buys from utilities. The organization does not burn the fuel itself, but its energy demand causes emissions at the power plant. Switching to renewable energy suppliers is a common way to lower Scope 2 numbers.
Scope 3: Everything Else
This is where it gets complicated โ and where most emissions hide. Scope 3 includes the entire value chain: raw materials suppliers extract, factories that make components, shipping and logistics, employee commuting, business travel, and the end-of-life treatment of products. For most organizations, Scope 3 represents 70 to 90 percent of total emissions.
Why Scope 3 Matters for Purchasers
When you buy a product or service โ whether for personal use or for your business โ most of its carbon footprint was generated upstream, before it reached you. The raw materials, manufacturing, packaging, and distribution that brought it to the point of purchase all carry emissions that are invisible at the checkout.
CarbonGuru analyzes the product lifecycle up to the point of purchase โ covering extraction, production, and distribution โ to give individuals and businesses a clear picture of the climate cost embedded in what they buy. This is distinct from Scope 3 compliance reporting, which organizations use to account for emissions across their full value chain. CarbonGuru focuses on helping purchasers understand and act on the footprint of the goods, services, and activities they acquire.