Scope 1, 2 & 3 Made Simple: What Every Built Environment Professional Need to Know
You’ve seen them on ESG reports. You’ve heard them mentioned in tender meetings. And if you're in the construction or infrastructure sector, chances are you’ve been told you need to start “reporting and reducing your Scope 1, 2, and 3 emissions”.
But what do those scopes actually mean?
More importantly, why should you care?
This article simplifies the concept of carbon scopes and breaks down what each one means for different players in the built environment. Whether you’re a project manager, design consultant, contractor, or supplier, this guide will help you cut through the jargon, and take meaningful steps towards lower-carbon delivery.
What Are Scopes and Why Do They Matter?
Scopes 1, 2, and 3 were first defined by the Greenhouse Gas (GHG) Protocol, the most widely used international accounting standard for emissions reporting. These scopes categorise emissions based on where they occur and who has control or influence over them.
Scope 1: Direct emissions from sources you own or control
Scope 2: Indirect emissions from purchased energy
Scope 3: All other indirect emissions across your value chain
Why does this matter for the built environment?
Because construction, infrastructure, and real estate are responsible for almost 40% of global carbon emissions, and the vast majority of those lie beyond direct operational control.
Without a solid understanding of these scopes, it's almost impossible to plan, measure, or reduce emissions in a meaningful way.
Scope 1: Direct Emissions You Control
What it is:
Scope 1 includes all direct emissions from owned or controlled sources. This includes fuel combustion on-site or in vehicles under your control.
In a construction context:
Diesel used in on-site generators
Petrol in fleet vans
Gas used in temporary heating for site welfare cabins
Fuel from owned plant and equipment like excavators or forklifts
Who it affects most:
Contractors
Facilities managers
Any company operating a construction site
Why it matters:
Scope 1 is often the easiest to measure, and the first area companies start addressing. Switching from diesel to electric plant, using biofuels, or improving fleet efficiency can result in measurable reductions.
But many companies under report Scope 1 due to poor tracking or fragmented data from multiple subcontractors.
Scope 2: The Energy You Buy
What it is:
Scope 2 covers indirect emissions from the generation of purchased electricity, steam, heating, and cooling.
In a construction context:
Electricity used to power site offices or lighting
Modular construction facilities running on grid electricity
District heating supplied to a commercial property under development
Why it matters:
These emissions may not happen on your site … but they happen because of you. If you’re running high-energy operations, Scope 2 can be a significant chunk of your footprint.
Switching to renewable energy contracts (also called green tariffs), improving energy efficiency, or installing solar panels can help reduce Scope 2 emissions significantly.
Watch out:
There’s a common misconception that if you're buying renewable energy, your Scope 2 is automatically zero. But unless it meets REGO-backed, market-based reporting standards, that’s not always the case.
Scope 3: The One You Don’t Control But Must Influence
What it is:
Scope 3 covers all other indirect emissions that occur in your value chain both upstream and downstream. In the built environment, this is where most of the emissions lie.
According to the Carbon Trust, Scope 3 can account for 70–90% of a construction company’s total carbon footprint.
What it includes:
Upstream Scope 3
Embodied carbon in materials (e.g., steel, concrete, glass)
Transport of materials from suppliers to site
Waste from demolition and construction
Professional services: design, modelling, legal, admin
Downstream Scope 3
Use of the building or infrastructure once handed over
Maintenance and refurbishment
End-of-life emissions from demolition and disposal
Why it matters:
Scope 3 is difficult to measure, and even harder to reduce. But it’s where the biggest gains lie. If you're a client or Tier 1 contractor, you can influence your Scope 3 emissions by working with lower-carbon suppliers, requesting Environmental Product Declarations (EPDs), and setting project-wide carbon baselines early.
And if you're a subcontractor or supplier, remember: your Scope 1 becomes someone else’s Scope 3.
Where Does Responsibility Sit?
Here’s a simplified breakdown of how responsibilities often fall across roles in the built environment:
Role
Scope 1
Scope 2
Scope 3 (Main Influence)
Client
Office fuel/emissions
Purchased electricity for HQ
Supply chain, asset operation, materials
Designer
Studio heating/fuel
Office energy use
Material selection, spec choices, transport
Contractor
On-site plant and fleet
Temporary site office energy
Subcontractors, material suppliers
Supplier
Factory processes, transport
Manufacturing facility energy
Inputs to raw materials, logistics
It’s not about blame. We are talking about shared responsibility. Everyone has a role to play.
The Data Problem and Why It Slows Us Down
One of the biggest challenges in tracking scopes is data fragmentation. Too often, carbon data is locked in silos:
Procurement knows what was bought, but not its carbon footprint
Site teams track fuel, but can’t connect it to emission baselines
Consultants estimate carbon but don’t link it to actual delivery data
This leads to duplicate work, poor reporting, and missed opportunities for reduction.
Smarter Tools for Smarter Scope Tracking
This is where platforms like Carbonetrix come in.
Tools like CaDI (Carbon Data Intelligence) allow project teams to:
Track Scope 1, 2, and 3 emissions by activity (e.g. transport, waste, energy)
Spot trends and anomalies in carbon data
Benchmark against industry standards
Get real-time guidance on emissions reduction while projects are live
And with BECM-AI (Built Environment Carbon Management AI) Assistant, teams can:
Ask role-specific questions about PAS 2080, embodied carbon, and Scope 3 reporting
Upskill staff without leaving the workflow
Reduce training time while improving clarity and compliance
These tools turn carbon confusion into clarity, enabling action, not just reporting.
Action Starts with Understanding
Understanding Scope 1, 2, and 3 emissions isn't just a reporting requirement. It’s the foundation of meaningful climate action in the built environment.
You don’t have to control every tonne of CO₂ to influence it. You just need to understand:
What you're responsible for
What you're influencing
And where you can improve
Start with clarity, then move with confidence.