Where Should SMEs Start with Emissions? Here’s Why Scope 1 & 2 Are Your Best First Step
If you’re a small or medium-sized business trying to take climate action and understand your emissions—but not sure where to begin—you’re not alone. Sustainability can feel overwhelming. With evolving expectations from customers, suppliers, regulators, and investors, many SMEs find themselves asking the same question:
“What part of my emissions should I focus on first?”
Our advice to SMEs looking to have an impact and understand their emissions: Start with Scope 1 & 2 emissions.
Here’s why.
What Are Scope 1, 2, & 3 Emissions?
Before you can reduce emissions, it’s important to understand where they’re coming from. To help businesses understand their overall emissions, experts break them down into three categories: scope 1, scope 2, and scope 3 emissions.
Scope 1 emissions are direct emissions from your own operations—think on-site fuel use, company vehicles, or anything that burns fuel under your control.
Scope 2 emissions are indirect emissions from purchased energy—mainly electricity you use to power your business.
Scope 3 emissions are broader value chain emissions—including your supply chain, transport, waste, and much more (we dive deeper into Scope 3 here!)
Most businesses start by understanding their Scope 1 & 2 emissions. These are typically the emissions that are easiest to access, understand, and reduce—especially compared to the more complex Scope 3 emissions, which involve your entire supply chain.
Why These Scopes Matter for SMEs
If you’re submitting tenders, applying for funding, or filling out supplier questionnaires, chances are you’ve already been asked about Scope 1 & 2 emissions.
They're often the first data points buyers and partners look for when working to understand their own emissions. This is because your Scope 1 & 2 emissions are a part of their broader value chain, or Scope 3 emissions. They need data from you in order to complete their own reporting and take action on their sustainability goals.
📌 That means Scope 1 & 2 aren’t just climate priorities—they’re business priorities.
Top Tips for Getting Started
Here’s are some top tips for getting started with understanding your Scope 1 & 2 emissions:
Map your organisation and how it uses energy: Look at your buildings, vehicles, equipment—anywhere you use fuel or electricity.
Identify what needs to be included: Focus on what you own or directly control. Think: gas boilers, fleet fuel, electricity bills.
Document your methods: Be clear about how you measured your emissions. This transparency builds trust and credibility.
Track progress over time: Monitor monthly or quarterly—whichever suits your operations best. Tools like spreadsheets, in-house dashboards, or online calculators can help.
Overcoming Common Barriers
Many SMEs hesitate to start because they feel they lack the time, expertise, or resources.
But starting small—by focusing on Scope 1 & 2—makes the journey manageable. And with clear data in hand, it’s much easier to get leadership and team buy-in to take meaningful action. This data will help you to frame sustainability as a business enabler—not just a responsibility.
Ready to Learn More? 🎧
This blog just scratches the surface. In our podcast episode episode, we explore:
How to calculate Scope 1 & 2 emissions step-by-step
Why these numbers are increasingly part of buyer and funder expectations
Real examples of how SMEs can make meaningful progress
A sneak peek at our next episode on Scope 3 and marketing your efforts without greenwashing
🎙️ Listen to the full episode now →
Final Thought
You don’t need to be a sustainability expert to make a difference. You just need to start somewhere—and Scope 1 & 2 are the most impactful and accessible place to begin.
Let’s simplify sustainability—together.
