How to Reduce Scope 1 Emissions for Your Company

Reducing Scope 1 emissions is a key focus for companies managing their environmental impact. Scope 1 emissions are defined as direct greenhouse gas releases originating from sources a company owns or controls, such as combustion in company-owned boilers or fuel use in corporate vehicle fleets. Addressing these emissions is necessary due to regulatory pressures, financial risks associated with carbon pricing, and the need to maintain a positive corporate reputation. Managing these releases allows companies to mitigate future compliance costs and positions them competitively in a decarbonizing global economy.

Establishing the Baseline: Measurement and Reporting

A successful emissions reduction strategy begins with quantifying a company’s current environmental footprint. Establishing this baseline requires a comprehensive inventory following standardized accounting frameworks, such as the Greenhouse Gas Protocol, to ensure accuracy. This process involves systematically identifying every source of direct emission, including stationary combustion, mobile sources, industrial process releases, and fugitive leaks. Activity data must be collected for each source, such as the volume of natural gas consumed or the mileage driven by a fleet. This data is multiplied by corresponding emission factors to calculate the mass of each specific greenhouse gas released. Finally, the various gases (e.g., methane and nitrous oxide) are converted into a single metric, carbon dioxide equivalent ($\text{CO}_2\text{e}$), using their Global Warming Potential (GWP) values. This detailed inventory prioritizes high-impact reduction opportunities and establishes the benchmark against which future progress is measured.

Optimizing Stationary Combustion Sources

Fixed assets like industrial boilers, furnaces, and gas turbines often represent the largest source of Scope 1 emissions for manufacturing and power generation companies. The initial approach centers on maximizing the thermal efficiency of existing equipment to reduce fuel demand. This involves implementing advanced process controls, optimizing boiler blowdown rates, and installing waste heat recovery systems, such as economizers, to capture energy otherwise lost through exhaust stacks.

Regular tuning and calibration of burners ensures optimal air-to-fuel ratios, which reduces fuel consumption and minimizes nitrous oxide pollutants. Upgrading older equipment to high-efficiency condensing boilers or combined heat and power (CHP) systems captures additional energy by utilizing heat from electricity generation for industrial processes or space heating. These operational and mechanical improvements yield immediate and measurable reductions in fuel use without requiring a complete infrastructure overhaul.

The next major step involves transitioning away from high-carbon fossil fuels toward lower- or zero-carbon alternatives. Companies reliant on coal or heavy fuel oil can transition to natural gas as a bridging fuel, which offers a lower carbon intensity per unit of energy produced. The ultimate goal is a direct switch to non-fossil alternatives, such as renewable natural gas (RNG), captured from landfills or anaerobic digestion, or sustainable biogas.

Zero-emission options include utilizing green hydrogen, produced via electrolysis powered by renewable electricity, or electrifying heating processes entirely. Replacing gas-fired equipment with high-efficiency industrial heat pumps or resistive electric heating elements eliminates combustion-related Scope 1 emissions, especially when coupled with renewable electricity. This fuel switching requires significant capital expenditure and planning but fundamentally decouples the asset’s operation from fossil fuel combustion.

Decarbonizing Company-Owned Vehicle Fleets

Mobile combustion sources, including corporate sedans, delivery vans, heavy-duty trucks, and specialized off-road equipment, are a significant component of Scope 1 emissions. A strategy begins with optimizing existing logistics through software and policy changes. Telematics systems monitor driver behavior, identifying excessive acceleration or hard braking that increases fuel consumption.

Route planning software minimizes total travel distance and avoids unnecessary idling time. Companies should also conduct a fleet rightsizing analysis to ensure every vehicle is appropriately matched to its operational task, avoiding the use of large, inefficient vehicles for light-duty purposes. These measures yield immediate reductions in fuel consumption and associated costs.

The most transformative strategy is transitioning the fleet to electric power, replacing internal combustion engine vehicles (ICEVs) with battery electric vehicles (BEVs) or plug-in hybrid electric vehicles (PHEVs). This shift requires substantial investment in charging infrastructure, including Level 2 stations for overnight charging and high-power DC fast chargers for rapid turnaround at depots. Deployment must be managed to avoid overloading existing grid connections and to optimize charging schedules to align with lower-cost electricity periods.

For heavy-duty transport, where battery technology may not provide the necessary range or payload capacity, adopting low-carbon alternative fuels serves as a viable interim solution. Renewable diesel (Hydrotreated Vegetable Oil or HVO) is a chemically identical drop-in replacement for conventional diesel that offers significant lifecycle emission reductions without engine modification. For specialized applications like aviation or maritime transport, sustainable aviation fuel (SAF) or biofuels derived from non-food feedstocks are used to lower operational carbon intensity.

Managing Fugitive and Industrial Process Emissions

Scope 1 emissions include non-energy related releases, specifically fugitive emissions and industrial process emissions. Fugitive emissions are unintentional leaks of potent greenhouse gases, such as methane from pipelines, sulfur hexafluoride ($\text{SF}_6$) from electrical switchgear, and hydrofluorocarbons (HFCs) used in refrigeration. These gases possess Global Warming Potentials thousands of times higher than $\text{CO}_2$, making their control highly impactful.

Managing these leaks requires establishing Leak Detection and Repair (LDAR) programs that utilize advanced monitoring tools, such as optical gas imaging cameras, to quickly repair leaks in pipelines and equipment seals. Companies must also phase out high-GWP refrigerants like R-410A in favor of lower-GWP alternatives, such as R-32 or natural refrigerants like $\text{CO}_2$ and ammonia, in new installations and major retrofits. This systematic replacement minimizes the climate impact of inevitable refrigerant losses.

Industrial process emissions are gases released as a byproduct of specific chemical reactions, rather than from burning fuel. A prominent example is the calcination process in cement manufacturing, where heating limestone ($\text{CaCO}_3$) releases large volumes of $\text{CO}_2$. Mitigation strategies include modifying the process by substituting traditional raw materials, such as clinker, with alternative binders like fly ash or slag, which do not require high-temperature decomposition.

For emissions that cannot be eliminated through process modification, Carbon Capture, Utilization, and Storage (CCUS) technologies are necessary. This involves capturing $\text{CO}_2$ directly from high-concentration industrial flue streams, often using chemical solvents. The captured gas is then either transported for permanent geological storage in deep saline aquifers or utilized as an input for other industrial products.

Governance and Setting Reduction Targets

The success of Scope 1 reduction efforts depends on integrating emission goals directly into corporate governance and capital planning. Companies should adopt externally validated targets, often aligning with the Science Based Targets initiative (SBTi) framework, which ensures goals are consistent with limiting global warming to $1.5^\circ\text{C}$. These targets must be formally embedded into the corporate strategy, making them a core business objective.

Integrating reduction targets into the capital expenditure (CapEx) approval process ensures that every new asset purchase or major facility upgrade is evaluated on its long-term emissions profile, not just financial return. This prioritizes investments in low-carbon technologies over high-emitting alternatives. Establishing internal Measurement, Reporting, and Verification (MRV) systems ensures continuous, accurate tracking of performance against the baseline and targets, allowing for timely corrective action. Transparent, third-party verified public reporting of Scope 1 performance reinforces accountability to stakeholders and demonstrates commitment to the decarbonization pathway.