Scope 1, 2, and 3 Emissions: What’s the Difference?

Scope 1, 2, and 3 Emissions: What’s the Difference?

By Nick Bartlett on April 10, 2024
Learn about the meaning behind the three categories of emissions: Scope 1, scope 2, and scope 3.

Every industry, including transportation, agriculture, electricity, construction, and manufacturing, contributes to carbon emissions globally. Despite the efforts to use greener tactics and renewable energy sources, running a business still produces certain outputs that harm the environment.

There are ways to reduce and counteract some of that output, but you first need to establish where your company’s carbon emissions come from.

Just as each industry and company functions differently, each company’s associated emissions come from a variety of different sources

In the sustainability world, an important term to know when talking about types of emissions is “scope”. In this article, we’re diving in to define the different types of scope: Scope 1, scope 2, and scope 3 emissions, and where CBIP stands in terms of the three types.

Scope 1 emissions

Scope 1 emissions encompass any carbon emissions that result from a company’s direct operations. 

Scope 1 emissions include emissions from sources that are physically owned and operated by the company, like company-owned vehicles and other company facilities.

Typically, companies that own their own sources of manufacturing or transportation have large scope 1 categorized emissions. Big brands in the food and beverage and consumer products industries are some of the largest Scope 1 contributors. 

CBIP’s 2021 sustainability report, based on rigorous audits, found that 0% of CBIP’s emissions are scope 1. This is due to the fact that CBIP works with other distribution and logistics partners to move goods around the world. 

CBIP’s work doesn’t result in direct emissions from buildings or vehicles that are owned by the company.

Scope 2 emissions

Scope 2 emissions encompass any carbon emissions from indirect sources. 

Scope 2 emissions include emissions from sources like

  • Electricity
  • Heating
  • Cooling
  • Steam

Companies with large warehouses, stores, or computers/data centers that use a lot of energy often have large scope 2 emissions. Only 0.02% of CBIP’s total emissions in 2021 came from scope 2 sources. 

Scope 3 emissions

Scope 3 emissions include all other indirect emissions. These emissions come from a company’s supply chain, and they are often the largest portion of a company’s emissions. 

Scope 3 emissions include emissions from sources such as

  • Transportation and distribution
  • Purchased goods and services
  • Capital goods
  • Operational waste
  • Employee commuting
  • Leased assets
  • Business travel
  • Processing of sold products
  • Use of sold products
  • End-of-life of sold products
  • Investments

Companies with high scope 3 emissions include oil and gas companies and technology companies. All of the activities in these sectors have high emissions coming from indirect sources in their supply chains, as well as emissions from the use of products sold.

Though CBIP’s emissions scope 3 emissions are not high compared to other companies, almost all (99.98%) come from this area. 

The importance of understanding emissions

Before we can lower carbon emissions, we must first understand where they come from. Measuring emissions is a crucial first step in the journey to reducing them.

Since CBIP has collected the data, we know that scope 3 emissions are where we need to focus to lower our carbon impact. We are a carbon-neutral company, and we are working to create emissions-reduction targets and strategies.

If you are looking for a green logistics partner that takes sustainability seriously, contact us today! 

About Author

Nick Bartlett

Nick Bartlett is CBIP’s director of sales and marketing. His expertise lies in marketing, supply chain management, and corporate retail experience. He honed his skills over 10+ years working across the Asia Pacific region and beyond.

Nick keeps a close eye on new markets and believes successful business operations come through value-based relationships.


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Every e-commerce brand or seller is a little different. So, the best way for us to provide you with a detailed quote is to fill out our online questionnaire here and from here we can walk you through the various options available to you with CBIP Logistics.

No, we do not charge the higher fee associated with long-term storage. No matter how long the goods remain in our warehouse. They are charged the same rate for inventory storage.

Yes! We can store your inventory and replenish Amazon as necessary, helping you adhere to Amazon’s strict rules and regulations for packaging, labeling and shipping.

We charge for storage by either cubic meter, sqft or per pallet / racking space per week. It depends on the request from the customer as one-size doesn’t fit all. It would be better if you schedule a call with us

We provide a variety of services in the logistics landscape which includes Ocean Freight, Airfreight, Domestic Delivery, Warehouse & Distribution and Customs Clearance & Brokerage.

We offer several types of warehouses that are tailored to your requirements and vary among countries, e.g. Bonded Warehouse, General Warehouse, Consolidated Warehouse and Distribution Center.

Yes, you can track it from our platform by using the “Log In” function and access to “B2B” which is dedicated to track any shipment you have with us. This is a real-time platform which integrates with some major carriers so from here you can get the visibility of vessels on the globe map.

  • Origin Management: digital PO management and connected suppliers supported by agnostic 3PL vendor management capabilities.

  • Shipment Tracker: real time tracking also vessel tracking to let you know where the goods are.

  • Destination Management: platform manage the delivery to Distribution Centre and update frequently on platform.

  • Paperless Handling: we centralize the document hub on the platform for shipment-by-shipment. From here you can get the full documentation of a particular shipment within a click.

We offer the consulting services to enterprises who looking for either:

  • Optimizing their existing operations for cost, operation & performance effectiveness.

  • Scale their B2C or B2B business

Yes, our consulting services range from completing assessments on existing business, strategy & planning, tendering & RFP development, vendor selection and transitions & special projects.

Every business, we have a dedicated Account Manager who is the focal contact point that you can get in touch for daily operation.

Greenhouse gases (GHGs) are any gases that contribute to climate change through the effect of global warming (carbon dioxide, methane, nitrous oxide, and more). As more of these gases are released, the atmosphere traps more heat from the sun every year. This is causing the climate to change. GHGs and carbon dioxide (CO2) emissions are often used interchangeably with carbon emissions when talking about the climate.

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