Scope Emissions: Curbing and Mastering 1, 2 & 3

It’s another busy Tuesday at the office. You’ve just wrapped up the weekly operations meeting, with its usual talk of supply chain bottlenecks and efficiency targets. As you settle back at your desk, an email catches your eye about new carbon emissions goals from the sustainability team. Given your pressing issues, your first instinct is to flag it for later. But as you start skimming, you hesitate. Lately, these sustainability topics have been creeping into more high-level discussions. Last month, a major client asked about your company’s green initiatives. And didn’t you read something about competitors overhauling their supply chains to cut emissions? Leaning back in your chair, you consider that maybe it’s time to take a closer look at how these green goals intersect with your operations strategy. Could there be opportunities here you’ve been overlooking?

Three numbers representing scope emissions are an excellent starting point. Each scope maps out where your company, suppliers, and customers create greenhouse gas (GHG) emissions – from the energy powering your website and warehouses to the packaging you use and how your products are made and transported. Digging into these numbers often uncovers hidden opportunities. Maybe your returns process is needlessly wasteful, or there’s a more innovative way to route deliveries. With that in mind, let’s cover what these scope levels are and why they’re important to manage in your business.  

Scope Emissions: The Basics of 1, 2 and 3 

You might think your impact on the environment starts and ends with flipping on the lights or delivery vehicle emissions. However, from the electricity powering your cash registers to the far-flung factories churning out your merchandise, your carbon trail stretches further than you’d imagine. Scope emissions add context and substance to this.  

Scope 1: Direct Emissions

Scope 1 emissions are the GHGs that come directly from sources your company owns or controls. Think of it as your company’s “tailpipe emissions.” Common examples include:

• Fuel burned by your delivery trucks and forklifts
• Natural gas used in your warehouse heating systems
• Refrigerant leaks from your cold storage units

Calculating these emissions is straightforward. The EPA recommends:

• Identifying all your emission sources
• Collecting data on fuel consumption
• Applying standardized emission factors
• Multiplying activity data by emission factors
• Summing up the total emissions

Remember, Scope 1 emissions are 100% your responsibility, so tackling them head-on can make a significant impact.

Scope 2: Indirect Emissions from Purchased Energy

Scope 2 covers the indirect emissions from the electricity, steam, heating and cooling you buy and use. While you don’t produce these emissions directly, they result from your energy consumption.

Companies typically account for Scope 2 emissions using two methods:

• Location-based: Using average emission factors for your local power grid
• Market-based: Factoring in any specific energy contracts or renewable energy purchases

But let’s face it — crunching these numbers is only useful if your data is solid. Think of it like your business finances. You wouldn’t make big decisions based on shaky bookkeeping, right? The same goes for your emissions. With accurate figures, you can spot where you’re wasting energy (and money), determine if something like solar panels might pay off, and see how you stack up against your competitors. Plus, when regulators knock, you’ll have the receipts to back up your eco-friendly claims.

Scope 3: Value Chain Emissions

Scope 3 is the trickiest category, covering all other indirect emissions in your value chain. These emissions often dwarf Scope 1 and 2, with the average company’s supply chain emissions being 11.4 times greater than its direct operations.

Scope 3 includes emissions from:

• Goods and services you purchase
• Transportation of products (not in company vehicles)
• Business travel
• Employee commuting
• Use and disposal of your products

What makes tracking these Scope 3 emissions so challenging to address is their lack of visibility. You’re dealing with unseen suppliers, mountains of data and processes beyond your control. 

But don’t let this deter you; it’s where you can make the biggest difference. So, get creative: Engage suppliers in setting sustainability goals, collaborate with industry peers on effective standards, and use your purchasing power to drive transparency. Ground your approach in science-based targets that guide your entire supply chain. It’s not easy, but addressing Scope 3 emissions is where you’ll truly move the needle most. 

Strategies for Scope Emission Reduction: Your Roadmap to a Greener Future

Ready to slash your carbon footprint? Where to start? Let’s break down two key strategies to set you on the right foot. Remember, every cut in scope emissions counts, whether you’re a small local retailer or a global wholesaler.  

Developing a GHG Inventory: Know Your Numbers

First things first — you can’t manage what you don’t measure. Creating a detailed greenhouse gas inventory is your foundation for success. It’s all about spotting your emission hotspots. A GHG inventory helps you pinpoint and quantify all your emission sources — from direct operations (Scope 1) to indirect energy use (Scope 2) and even your supply chain (Scope 3).

Once you know where your scope emissions come from, you can make smarter decisions and prioritize reduction efforts where they’ll have the biggest impact. Setting a baseline and watching your improvements over time is incredibly motivating. Plus, many companies now face mandatory reporting requirements. A solid inventory keeps you compliant and ready for whatever comes next.

The EPA’s got your back with clear guidelines aligned with the GHG Protocol Corporate Standard. They’ll walk you through defining boundaries, choosing a base year and nailing down those all-important calculation methods. With this roadmap, you’ll be well on your way to understanding your carbon footprint inside and out.

Setting Reduction Targets: Aim High, Achieve More

Now that you’ve got a handle on your scope emissions, it’s time to set some goals. But not just any goals — we’re talking science-based targets that pack a real punch. These targets, aligned with the Paris Agreement’s goal of limiting warming to 1.5°C, keep you ahead of the curve as markets and regulations evolve.

Major players like Unilever aim for 70% reductions in operational emissions by 2025 (compared to 2015). What could your company achieve? Be bold and think big — emission reductions often go hand-in-hand with operational efficiencies and cost savings. It’s a win-win for boosting your bottom line while shrinking your carbon footprint.

The Science Based Targets initiative (SBTi) offers a clear process to get there: Commit, Develop, Submit, Communicate and Disclose. Besides helping you set ambitious-yet-achievable targets for your specific industry, these concrete, science-backed goals show investors and customers you’re serious about sustainability.

Leveraging Advanced Technologies for Better Efficiency and Lower Emissions

As retailers and wholesalers, you always look for ways to streamline operations and cut costs. But what if the same choices that boost your bottom line could also slash your carbon footprint? That’s what’s happening in the world of last mile delivery. But it takes partnering with the right provider and putting in your own work, too.  

Smart Fleet Management

You’re at the helm of your retail or wholesale business, scanning your latest emissions report. The numbers stare back at you, a constant reminder of your environmental impact. Now imagine watching those figures drop, month after month. If you partner with a cutting-edge final mile delivery company, that could be your reality. Best-in-class fleet management platforms orchestrate seamless deliveries by smart-matching the right-sized vehicle for the right order criteria and product size for the greatest efficiency. But the benefits continue beyond there.

The best providers in the business go beyond just efficient deliveries. They use AI algorithms for predictive maintenance, anticipating when vehicles need servicing before problems arise. This proactive approach keeps fleets running at peak efficiency, cutting fuel use and emissions. Studies show that AI logistics applications can lead to reductions of 5% to 10%, or 2.6 to 5.3 gigatons of CO2e if applied across all scope emissions. In the big picture, that’s like wiping out the carbon footprint of a small country.

Adoption of Renewable Energy and Electrification

When picking a final mile delivery partner, don’t be fooled by flashy promises. Look for companies that walk the walk. The best ones are already putting electric vans on your streets and have solid plans to add more. They’re also using smart tech to map out the most efficient routes, whether it’s for their electric or regular vehicles. But here’s the real kicker: team up with suppliers and delivery partners who are open about their sustainability goals. You want partners who are serious about tracking and cutting down their carbon footprint – not just in their own backyard (that’s Scope 1 and 2), but all the way up and down their supply chain (that’s Scope 3). It’s this Scope 3 emissions that often makes the biggest impact, so, keep an eye out for those who are actively working on it or even better, have already made some serious headway in cutting them. 

OneRail’s Roadmap to Sustainable Fulfillment and Logistics

​​OneRail is blazing a trail in eco-friendly final mile delivery, proving that efficiency and sustainability can go hand in hand. Here’s how:

• Smart Wheels on the Ground: OneRail’s OmniPoint® Platform is the brains behind its efficient operations. By batching orders and optimizing routes, it slashes unnecessary miles and keeps vehicles full.  
• Giving Mother Nature a Helping Hand: OneRail isn’t just talking — they’re putting their money where their mouth is. By investing in the National Park Foundation, they’re helping protect vast ecosystems that act like nature’s air purifiers. It’s like planting a million trees but way cooler.
• Playing by the Rules, Saving the Planet: For OneRail, following the rules isn’t just about avoiding trouble; it’s about building trust. Their commitment to ethical practices is good for business — and for the earth, too.  
• Tech to the Rescue: OneRail’s platform is like a Swiss Army knife for sustainable shipping. With features that let customers choose eco-friendly options and track their carbon footprint, it’s empowering everyone to be a part of the solution. 
• Right-Sized Rides: No more sending a semi-truck to deliver a toothbrush. OneRail matches each delivery to the perfect vehicle from its vast network. 

Turning Challenges into Opportunities: One Scope at a Time

Once upon a time, on-time delivery was the holy grail of logistics. Supply chain professionals face new challenges today: carbon footprints and emission scopes. But here’s the silver lining — once you master Scope 1, 2 and 3 metrics, it will open doors to operational excellence, whether you’re an e-tailer dispatching thousands of packages or a wholesale distributor moving truckloads of inventory. From the energy powering your forklifts to the factories crafting your products halfway across the globe, each link in your supply chain holds the potential for positive change.  

But let’s face it — going green can feel like scaling Mount Everest in flip-flops. However, platforms like OneRail can help transform your last mile logistics from a carbon-heavy headache into a lean, green delivering machine. Whether it’s optimizing routes, batching orders, managing inventory or reducing emissions in innovative ways, OneRail is way ahead of the game when it comes to this new eco-friendly era.

So, why not explore the potential? Schedule a demo with OneRail to see what a streamlined, eco-friendly supply chain could look like. Your business’ future — and the planet’s — will reap the rewards.