Scope 1 Emission Reduction Opportunities
Learn about opportunities to reduce Scope 1 Emissions
Scope 1 Emissions Reduction Opportunities
What is Scope 1?
Scope 1 emissions are the greenhouse gases that your organisation directly produces. Think of emissions from company-owned vehicles, onsite energy production, and industrial processes. These are the emissions you have the most control over, making them a great starting point for your reduction efforts.
You can learn more about scope 1 emissions in our detailed article here.
Introduction to Emission Reduction 📉
Reducing emissions isn't just about saving the world—though that's a pretty great reason. It's also about saving money, boosting efficiency, and staying ahead of regulations.
First, you need to get a handle on your current emissions. Accurate data collection and reporting are essential. Once you know where you stand, you can start identifying opportunities for reduction and putting your plans into action. Let's dive into some of the most common ways to reduce Scope 1 emissions and how to prioritize these opportunities effectively.
Common Scope 1 Reduction Opportunities
1. Energy Efficiency Improvements
Boosting energy efficiency is often the easiest and most cost-effective way to cut emissions. Here are some strategies:
- Upgrading Equipment: Swap out old machinery for newer, more energy-efficient models.
- Regular Maintenance: Keep your equipment in top shape to ensure it runs efficiently.
- Energy Management Systems: if you operate an organisation with complex processes use technology to monitor and optimise your energy use - you can’t manage what you cant measure!
2. Fuel Switching
Switching to lower-carbon fuels can make a big difference. Consider these options:
- Natural Gas: It emits less GHG emissions per unit of energy output than coal or oil. Depending on your organisation’s targets natural gas may only be an interim solution.
- Biofuels: Use sustainably sourced biofuels as a replacement for fossil fuels.
- Electric Vehicles (EVs): Replace petrol or diesel vehicles with electric or hybrid ones.
3. Onsite Renewable Energy
Generating your own renewable energy can significantly cut down on emissions. Here’s how:
- Solar Panels: Install solar panels to generate electricity.
- Wind Turbines: Use wind turbines if your location is suitable.
- Biogas: Capture and use biogas from organic waste.
Onsite renewables can directly replace fossil fuel powered onsite generation or the renewable energy can compound the impact of fuel switching
4. Process Optimisation
Streamlining your processes can lead to substantial emission reductions:
- Lean Manufacturing: Minimise waste and improve efficiency with lean manufacturing principles.
- Heat Recovery: Capture and reuse waste heat in your industrial processes.
- Process Modifications: Redesign processes to reduce energy use and emissions.
The types of Scope 1 reduction opportunities will vary from business to business. By preparing a GHG Inventory you will start to understand where your Scope 1 emissions are coming from which will then inform the possible opportunities that might be available.
How to Prioritise Opportunities
Not all emission reduction opportunities are created equal. Here’s how to prioritise them:
1. Emission Reduction Potential
Look at how much each opportunity can cut your emissions. Focus on the ones with the biggest impact relative to their cost and feasibility.
2. Cost-Effectiveness
Evaluate the cost-effectiveness of each initiative, considering the initial investment, operational costs, and potential savings. Go for the options that give you the best bang for your buck.
3. Feasibility and Scalability
Consider how practical each opportunity is to implement, including technical, regulatory, and logistical factors. Prioritise solutions that can grow with your organization.
4. Alignment with Organisational Goals
Make sure your emission reduction efforts align with your broader strategic goals, such as sustainability targets, financial performance, and corporate social responsibility commitments.
5. Stakeholder Support
Engage with stakeholders like employees, customers, investors, and regulators. Projects with strong stakeholder backing are more likely to succeed.
What specific frameworks can be helpful?
Once you have evaluated the opportunities across each of these dimensions you can then compare them to identify which ones make sense to prioritise. There are many frameworks that can be used to make this decision - your organisation might even have its own guidance.
At Sumday we find the Value vs Effort Matrix as helpful. Basically you want to look at the cost and effort associated with each of the initiatives as well as the potential value in terms of carbon reduction.
To help with further prioritising potential initiatives, tools like Marginal Abatement Cost Curves (MACC) can be useful. The idea with a MACC is to understand the relative cost of reducing greenhouse gas emissions by one tonne across all of the initiatives that a business has available to reduce emissions. From there you can visualise the relative financial impact of each of these reduction opportunities on a continuum.
Projects with a Marginal Abatement Cost of below $0/t of CO2e should deliver a financial saving as a result of implementing the project. Cost is obviously just one consideration and the other factors like those outlined above should also be considered as part of the investment process..
Conclusion
Reducing Scope 1 emissions is a crucial part of your sustainability journey. By understanding what Scope 1 emissions are and identifying common reduction opportunities, you can make significant progress in lowering your carbon footprint. Prioritising these opportunities requires a strategic approach that considers emission reduction potential, cost-effectiveness, feasibility, alignment with organisational goals, and stakeholder support.