ESG & Sustainability

Scope 1/2/3 Emissions

A classification system for greenhouse gas emissions based on their source: direct operations, purchased energy, and value chain activities.

Also known as: GHG Protocol scopesemission scopescarbon emission categoriesdirect and indirect emissions

The Scope 1, 2, and 3 framework, defined by the GHG Protocol, provides a standardized system for categorizing greenhouse gas emissions by their source. This classification has become essential for comprehensive carbon footprint accounting and is increasingly required by brands, investors, and regulators seeking to understand the full climate impact of business operations.

Scope 1: Direct Emissions

Scope 1 encompasses emissions from sources that a company owns or directly controls. In textile manufacturing, this includes emissions from on-site boilers and furnaces used for heating process water and facilities, company-owned vehicles used for internal logistics, fugitive emissions from refrigerants in cooling systems, and any on-site power generation from fossil fuels. These emissions are the most directly controllable, as they result from equipment and processes under the company's immediate management.

Scope 2: Indirect Energy Emissions

Scope 2 covers emissions from purchased electricity, steam, heating, and cooling—energy that the company consumes but does not generate itself. For textile manufacturers, this typically represents a significant portion of their controllable emissions. Electricity powering manufacturing equipment, purchased steam for dyeing operations, grid electricity for facility lighting and climate control, and district heating or cooling services all fall under Scope 2. While the company doesn't directly produce these emissions, it can influence them through energy efficiency measures and renewable energy procurement.

Scope 3: Value Chain Emissions

Scope 3 captures all other indirect emissions occurring throughout a company's value chain—both upstream and downstream. Upstream Scope 3 emissions for textile manufacturers include raw material production (fiber cultivation or synthesis), supplier manufacturing processes, transportation and distribution of inputs, business travel, and employee commuting. Downstream emissions encompass product use by consumers (particularly washing and drying), end-of-life treatment of products, and customer transportation.

Why Scope 3 Dominates Textile Emissions

For textile companies, Scope 3 emissions typically represent 80-95% of total emissions—a proportion that makes value chain engagement essential for meaningful climate action. Raw materials are particularly significant contributors; the carbon intensity of fiber production often exceeds all manufacturing emissions combined. This reality explains why major brands increasingly require Scope 3 reporting from suppliers and why the Science Based Targets initiative mandates Scope 3 inclusion for companies with significant value chain emissions.

Reporting Frameworks

Several frameworks guide emissions reporting across all three scopes. The GHG Protocol Corporate Standard provides the foundational methodology that defines the scope categories. The CDP Climate Change questionnaire, widely used by brands to evaluate suppliers, requires reporting across all scopes. The Science Based Targets initiative (SBTi) requires companies to set reduction targets that include Scope 3 when it represents a significant portion of total emissions. ISO 14064 provides international standards for emissions quantification and verification.

Reduction Strategies by Scope

Effective emissions reduction requires scope-specific strategies. Scope 1 reductions focus on fuel switching (replacing fossil fuels with cleaner alternatives) and efficiency improvements in combustion equipment and processes. Scope 2 reductions center on renewable energy procurement—whether through on-site generation, power purchase agreements, or renewable energy certificates—combined with energy efficiency measures that reduce total consumption. Scope 3 reductions require supplier engagement to improve upstream practices, material choices that favor lower-carbon inputs like recycled fibers, and product design that reduces use-phase impacts.

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