Scope 1 vs Scope 2 Emissions: A Simple Guide for Tradies
The terms "Scope 1" and "Scope 2" get thrown around a lot, but for a typical Australian trade business, they are actually very simple.
Scope 1: What you Burn
Think of this as flames. If you light a match, verify an engine, or burn gas at your premises, that is Scope 1.
Common examples for tradies:
- Diesel/Petrol: The fuel going into your work utes, trucks, or vans.
- LPG/Gas: Forklifts, heating, or commercial cooking equipment.
- Generators: Diesel used on-site for power.
Scope 2: What you Click
Think of this as switches. It's the emissions created by someone else (the power station) to send electricity to your socket.
Common examples:
- Office/Workshop Power: Lighting, computers, air conditioning.
- Tool Charging: Batteries plugged into the wall.
What about Scope 3?
Scope 3 is "everything else" (waste, business flights, materials you buy). It is huge and complex. Most small business tenders do NOT require Scope 3 reporting yet.
Focus on getting Scope 1 and 2 right first. It's accurate to your direct control and satisfies 90% of current compliance requests.
Disclaimer: Information in this guide is general in nature and does not constitute legal or financial advice. Please consult a professional for your specific obligations.
