As the global focus intensifies on sustainable development and climate action, businesses are increasingly being held accountable not only for financial performance but also for their environmental, social, and governance (ESG) impact. Among the core pillars of ESG reporting, one area gaining particular importance is the accurate disclosure of greenhouse gas (GHG) emissions — especially Scope 1 emissions. Understanding and addressing these emissions is not just a regulatory requirement; it’s a strategic business priority. Companies like QuikESG are already addressing these issues.

What is ESG Reporting?

ESG reporting refers to the disclosure of data covering a company’s operations in three key areas:

• Environmental: Impact on nature and the climate.
   


• Social: Relationships with employees, suppliers, customers, and communities.
   


• Governance: Internal practices, controls, and decision-making structures.
   


 

Investors, regulators, and stakeholders use ESG reports to assess how sustainably a company is operating and how well it’s positioned for long-term success.

Understanding Scope 1 Emissions

Greenhouse gas emissions are categorized into three “scopes” under the GHG Protocol, the world’s most widely used standard for emissions reporting:

• Scope 1: Direct emissions from owned or controlled sources (e.g., company vehicles, on-site fuel combustion).
   


• Scope 2: Indirect emissions from purchased electricity, steam, heating, and cooling.
   


• Scope 3: All other indirect emissions in a company’s value chain (e.g., business travel, product use, waste).
   


 

Scope 1 emissions are those a company has the most control over. These are emitted directly from assets the organization owns or operates — such as gas boilers, company cars, or manufacturing processes.

Why Scope 1 Emissions Matter

1. Direct Control: Since Scope 1 emissions are within a company’s control, reducing them is often the most immediate and impactful action a company can take toward climate goals.
    


2. Regulatory Compliance: Countries around the world are tightening climate disclosure rules. In the EU, the Corporate Sustainability Reporting Directive (CSRD) mandates detailed ESG disclosures. The U.S. SEC and other global regulators are also moving in this direction.
    


3. Investor Expectations: Institutional investors are integrating ESG metrics into decision-making. Transparent Scope 1 reporting can signal strong governance and proactive risk management.
    


4. Reputation and Consumer Trust: Consumers increasingly favor brands with strong environmental credentials. Companies that disclose and reduce emissions can build stronger brand equity and customer loyalty.
    


5. Operational Efficiency: Identifying sources of emissions often leads to improved energy efficiency and cost savings — a win-win for business and the planet.
    


 

Global Trends Driving ESG Reporting

• Climate Risk Integration: Climate change is now seen as a financial risk. ESG reporting helps companies understand and communicate how they’re mitigating it.
   


• Supply Chain Pressure: Large corporations are requiring ESG compliance from suppliers, pushing ESG reporting down the supply chain.
   


• Standardization Efforts: Organizations like the ISSB and EFRAG are developing global ESG reporting standards to enhance comparability and credibility.
   


 

Final Thoughts

In an era where sustainability is central to business resilience, ESG reporting — particularly Scope 1 emissions disclosure — is no longer optional. It’s a necessity for companies that want to thrive in the modern economy, attract investment, and make a positive impact on the planet. By committing to transparent and robust emissions reporting, businesses take the first step toward a more sustainable and successful future