
What are Scopes 1, 2 and 3 Emissions?
In this article, we define what Scope 1, 2, and 3 emissions are and their significance in managing a company's carbon footprint.
ESG / CSR
Industries
This makes decarbonisation one of the most urgent challenges we face.
Decarbonisation is the process of systematically reducing carbon emissions across all areas of the economy – from how we generate power to how we build, manufacture, and transport. It’s about moving away from fossil fuels and reshaping our systems around low carbon energy sources and more sustainable alternatives.
But what does that actually look like in practice, and how can businesses start making real progress?
In this article, we explore:
Decarbonisation refers to the process of reducing carbon dioxide emissions caused by human activity, particularly those from burning fossil fuels like coal, oil, and natural gas. The goal is to shift towards a low-carbon economy powered by renewable energy sources such as wind, solar, and hydro, and supported by cleaner technologies and sustainable practices.
Decarbonisation isn’t a single action, it’s a long-term transformation of how we generate energy, produce goods, move people and resources, and grow economies. And it’s the cornerstone of efforts to limit global warming and build climate resilience.
To understand why decarbonisation is so urgent, we need to look at how global emissions reached their current levels.
Since the Industrial Revolution, human activity has significantly increased the concentration of greenhouse gases in the atmosphere, primarily through the burning of fossil fuels such as coal, oil, and gas. These fuels have powered the global economy for over a century, driving growth and industrialisation, but at a steep environmental cost.
In 1750, atmospheric CO₂ levels were around 280 parts per million (ppm). Today, that figure has risen to over 420 ppm – the highest concentration in at least 800,000 years. The result? An intensified greenhouse effect, rising global temperatures, more extreme weather, melting glaciers and ice caps, and widespread ecological disruption.
Despite decades of warnings, emissions are still rising. In fact, recent estimates suggest that 2024 marked the highest level of carbon emissions on record, with around 41.6 billion tonnes of carbon dioxide released into the atmosphere, including 37.4 billion tonnes from fossil fuels alone.
Below is an infographic adapted from the World Resources Institute showing global greenhouse gas emissions by sector and end use.
To dig deeper, explore the sectors below to learn why they matter – and what needs to happen to decarbonise them.
The largest contributor to global emissions. Most energy still comes from burning fossil fuels like coal, oil, and natural gas.
A major source of methane and nitrous oxide, largely from livestock and fertilisers.
Sectors like steel, cement, and chemicals are energy-intensive and hard to decarbonise.
Organic waste in landfills emits methane, while incineration releases CO₂ and nitrous oxide.
Emissions result mainly from deforestation, peatland degradation, and land conversion.
Decarbonisation is essential not only to stabilise the climate but also to protect human health, preserve ecosystems, and ensure long-term economic resilience. The cost of inaction is growing, and the consequences of continued emissions will be felt across every part of society.
Here’s what’s at stake:
Reason | What’s at risk | Key facts |
---|---|---|
Climate stability | Higher emissions drive global warming, resulting in extreme heat, droughts, wildfires, floods, sea level rise, and ecosystem collapse. | According to the IPCC, limiting warming to 1.5°C requires a 45% cut in global emissions by 2030 and net zero by 2050. |
Human health & safety | Climate change increases respiratory illness, heat stress, food and water insecurity, and disaster-related deaths – especially in vulnerable regions. | WHO projects 250,000 additional deaths annually (2030–2050) from climate-related causes. Global South communities face 15× higher disaster mortality. |
Economic resilience | Unchecked warming disrupts infrastructure, supply chains, agriculture, and markets – with escalating financial losses. | Climate inaction could cost up to $69 trillion globally by 2100. Decarbonising early is the most cost-effective option. |
Environmental protection | Rising temperatures and CO₂ levels are accelerating biodiversity loss, coral bleaching, desertification, and freshwater shortages. | A 10 cm rise in sea levels could displace 10 million people. Heavy rainfall events become 70% more likely at 2°C warming. |
Decarbonisation hasn’t always been a mainstream policy goal. The idea has gained traction over the decades, shaped by scientific findings, political milestones, and growing global awareness of climate risks.
Below is a timeline of key moments that have brought decarbonisation to the forefront of international action:
Decarbonisation isn’t just about switching from fossil fuels to renewables – it’s about transforming every part of the economy. From how we generate power to how we design our energy system, build infrastructure, move goods, and consume resources, every sector must evolve. Here are the six critical shifts that will define the path to net zero:
Decarbonising the power sector is priority number one. This means rapidly expanding renewable energy sources like wind power and solar power, and using clean electricity generated from these sources to power heating systems, electric vehicles, and industrial systems. Energy efficiency is also a crucial aspect of decarbonising this sector.
Steel, cement, and chemical sectors rely on high-temperature processes. Clean heat, green hydrogen, electrification, and carbon capture will all play a role, but need rapid scale-up and investment.
Road transport must shift away from fossil fuels to EVs, supported by robust charging infrastructure and renewable energy. For aviation and shipping, the focus is on sustainable fuels and efficiency improvements.
Energy efficiency is key. As one of the core energy efficiency sectors, buildings need better insulation, low-carbon heating, and smarter energy use. Scaling up retrofitting and phasing out gas boilers will be essential.
Agriculture, forestry, and land use must shift from being emission sources to carbon sinks. Solutions include regenerative farming, afforestation, peatland restoration, and carbon sequestration through improved land management.
A shift toward reuse, recycling, and better product design can reduce upstream emissions and material demand. Circular systems and extended producer responsibility will be essential.
The UK has long been seen as a frontrunner in climate policy. It was the first G7 country to commit net zero greenhouse gas emissions by 2050 into law, backed by robust legislation like the Climate Change Act (2008) and the Environment Act (2021). These provide a strong legal framework that not only mandates emissions cuts but also holds the government accountable via regular carbon budgets and independent oversight.
In 2021, the UK government published its Net Zero Strategy: Build Back Greener, outlining sector-by-sector pathways to reach the 2050 goal and support the UK’s ambition to become carbon neutral. This was followed by the Net Zero Growth Plan (2023), which focused on scaling up low carbon technologies like heat pumps, electric vehicles, and carbon capture.
Under the Labour government elected in 2024, there has been a renewed push to strengthen climate action. Key legislation includes the Great British Energy Bill, establishing a publicly owned clean energy company, and support for green industrial investment, home insulation, and nature-based solutions.
The 2030 ban on the sale of new petrol and diesel cars has also been reinstated, reversing the delay announced by the previous government.
According to the Climate Change Committee’s (CCC) July 2024 assessment, the UK has met all three of its carbon budgets to date – a sign of strength in its legal and institutional framework. However, this success has largely come from the electricity supply sector. Over the next three carbon budgets, over 75% of required reductions must come from other sectors like transport, buildings, land use, and agriculture – areas where progress is still too slow.
In 2023, the amount of carbon emitted fell at a faster rate than in the previous seven years, but this was mainly due to reduced gas demand, not sustained climate action. Key indicators are now off track:
While many of these challenges stem from past policy delays and mixed signals, including the weakening of energy efficiency and heating targets in 2023, the new government has an opportunity to reset the UK’s trajectory and achieve net zero by 20250.
With just a few years left to meet its 2030 and Sixth Carbon Budget targets, the UK needs to rapidly scale action across all sectors. The CCC’s top recommendations include:
Businesses play a vital role in tackling climate change. According to the Carbon Majors Database, just 57 companies are responsible for 80% of global greenhouse gas emissions – a powerful reminder of the impact the private sector can have.
The good news? With the right strategy, decarbonising your business isn’t just possible – it can unlock new opportunities, boost resilience, and help future-proof your operations.
Here are five practical ways to get started:
Before you can cut the greenhouse gas emissions produced by your company, you need to understand where they’re coming from. A full carbon footprint assessment is the essential first step. It shows you which activities, suppliers, and systems consume energy and drive the bulk of your emissions, so you can start targeting the right areas.
At Greenly, we help companies of all sizes measure and manage their emissions. Get in touch to see how we can support your decarbonisation journey.
Once you know your baseline, it’s time to define where you want to go. Set SMART goals – specific, measurable, achievable, relevant, and time-bound – and link them to KPIs so you can track your progress over time.
Clarity here is key: your targets should be ambitious but achievable, and aligned with recognised frameworks like the Science Based Targets initiative (SBTi).
Decarbonisation isn’t just about compliance – it’s a chance to build a more future-ready business. From reducing operational costs to attracting ESG-focused investors and new customers, the benefits go beyond emissions alone.
Companies that move early tend to lead. By investing in climate action now, you’ll build resilience, unlock innovation, and stay ahead of incoming regulation and shifting market expectations.
Your people are key to making your sustainability goals stick. Get them involved early – from ideation to implementation – and create space for collaboration, creativity, and ownership.
Build buy-in with transparent communication, offer incentives, and celebrate milestones along the way. When your team feels empowered, sustainability becomes part of your culture, not just a checkbox.
Decarbonisation isn’t a one-off project – it’s a long-term shift. That means embedding it across your operations, procurement, product development, and reporting, and prioritising more energy efficient systems and processes wherever possible.
Align your sustainability goals with broader business objectives, and regularly review your progress to stay on track.
Decarbonisation doesn’t have to be overwhelming. At Greenly, we help streamline the process, giving you the tools, insights, and support you need to track, understand, and reduce your emissions across your entire business.
Here’s how we support your climate journey:
Want to find out how Greenly could support your decarbonisation goals?
Contact our team to learn more about how we can help you reduce emissions and work towards a low carbon future.