GHG and Scopes 1, 2, and 3

What are Scopes 1, 2, and 3 & Greenhouse Gases (GHG)?

Greenhouse gases (GHG) are emissions that contribute to climate change, and they come from different sources across a company’s operations and supply chain. The GHG Protocol sets the standards to measure and manage emissions. It categorizes emissions into three scopes:

Scope 1 (Direct Emissions): Emissions from sources a company owns or controls, such as fuel burned in company vehicles or emissions from on-site manufacturing.
Scope 2 (Indirect Energy Emissions): Emissions from purchased electricity, steam, heating, or cooling that a company uses.
Scope 3 (Supply Chain & Indirect Emissions): Emissions that occur outside a company’s direct control, including those from suppliers, transportation, and product use.

For food companies and suppliers, Scope 3 is often the largest category, as it includes emissions from raw ingredient sourcing, processing, packaging, and distribution.

Why Does This Matter for Food Industry Suppliers?

Customer & Regulatory Requirements: Many food companies are now required to report Scope 3 emissions and can’t do so without their suppliers’ data.
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Competitive Advantage: Companies that track and reduce emissions can differentiate themselves in the market and meet sustainability expectations from buyers and consumers.
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Operational Efficiency: Understanding emissions sources can help identify areas for cost savings, such as energy efficiency improvements or sustainable sourcing strategies.

How Does This Relate to SupplierConnect & HowGood

SupplierConnect simplifies Scope 3 reporting by enabling suppliers to share basic primary product data, which HowGood then uses to calculate greenhouse gas footprints.
This means no emissions data is required from suppliers. SupplierConnect (as part of HowGood’s Latis platform) calculates carbon footprints based on information such as your ingredient sourcing, processing, and manufacturing data.
Suppliers are provided with visibility and insights. Food companies using Latis can better understand their supply chain impact, work collaboratively on emissions reduction strategies, and utilize their product footprints to leverage sales.

Go Deeper With Scopes 1, 2, and 3

Access our help center article to learn more about Scope 3 reporting and data requirements.

Learn more about what Scope 3 means for food companies and how to prepare for future reporting.

The HowGood team is always available to provide further information and resources. Reach out to us at any time.