Greenhouse gas (GHG) emissions are divided into three categories based on their source: Scope 1, Scope 2, and Scope 3. Understanding these categories is essential for accurate carbon accounting and meeting regulatory requirements.

Scope 1: Direct Emissions from Operations

Scope 1 emissions come directly from a company’s owned or controlled sources. This includes:

• Fuel combustion in company-owned vehicles
• On-site manufacturing emissions
• Facility heating using fossil fuels

Floodlight’s Approach to Scope 1

• Satellite Data & Modeling – We use satellite measurements and emissions to assess facility-level emissions.
• Cross-Checking with Reported Data – We compare reported numbers with independent data sources for verification.

Scope 2: Indirect Emissions from Purchased Energy

Scope 2 covers emissions from electricity, steam, heating, or cooling that a company purchases. These emissions occur at the power plant but are attributed to the company using the energy.

Floodlight’s Approach to Scope 2

• Energy Consumption Analysis – We assess energy use based on operational data and location-based emissions factors.
• Renewable Energy Adjustments – If companies purchase renewable energy credits (RECs) or engage in power purchase agreements (PPAs), we factor that into Scope 2 calculations.

Scope 3: Indirect Emissions from the Supply Chain and Product Lifecycle

Scope 3 includes emissions from sources not owned or controlled by the company, such as:

• Supplier emissions (materials, transportation, and production)
• Employee commuting and business travel
• Emissions from product use and disposal

These emissions make up about 80% of a company’s total carbon footprint, yet they are the most difficult to track.

Floodlight’s Approach to Scope 3

• Supplier Data Analysis – We collect and assess supplier-provided emissions data.
• Independent Data Scanning – If supplier data is unavailable or uncertain, we use alternative methods to estimate emissions.
• Cradle-to-Grave Emissions Mapping – We help companies understand their full value chain impact, from raw material extraction to product disposal.
• Connection to Avoided Emissions (Scope 4) – We also assess potential emissions reductions from products and business changes.

Why This Matters

Accurate emissions tracking helps companies:
✔ Meet regulatory requirements (California’s Climate Disclosure Law, CSRD)
✔ Improve corporate sustainability efforts
✔ Make better decisions about emissions reduction strategies

Floodlight provides fact-based, data-driven analysis to improve emissions reporting across Scope 1, 2, and 3.

Get Started with Floodlight

Understanding and reporting emissions doesn’t have to be complicated. Contact us to learn how we can help.