Regardless of the approach to sustainability or the size of the value chain, businesses are realising that climate leadership and long-term resilient profitability depends on reducing climate-induced risk across the value chain, with emissions reductions becoming a mainstream requirement. The overall carbon reduction is highly dependent on supply-chain collaboration. For an organisation to become sustainable, reducing the Scope 3 emissions across processes is crucial and earlier organisations place the focus on Scope 3, the better.
What are the challenges with Scope 3 emissions?
Scope 3 emissions are indirect emissions that occur in the value chain of a company, both upstream and downstream. They can be challenging to measure and manage because they fall outside a company’s direct management or ownership,
making them difficult to control1. Additionally, they are hard to assess due to the difficulty of collecting high-quality data on the type or volume of emissions.
What is a scope 3 emissions strategy?
A Scope 3 emissions strategy involves understanding the implications for your specific business, measuring and managing those emissions, working closely with suppliers and customers, and setting specific targets on Scope 3 emissions. Many companies have begun to set specific targets on Scope 3, with the more advanced companies focusing on science-based initiatives.
What are Scope 3 emissions and why are they important?
Scope 3 emissions are important because they often represent the majority of an organization’s total greenhouse gas (GHG) emissions. Measuring Scope 3 emissions has several benefits. For most businesses and public bodies, the majority of their GHG emissions and cost reduction opportunities are outside their own operations. Addressing Scope 3 emissions can help advance an organization’s decarbonization and sustainability journey.
Why is it important to measure scope 3 emissions?
It is important to measure Scope 3 emissions because it allows businesses to assess where the emission hotspots are across their value chain to prioritize reduction strategies, identify which suppliers are leaders and which are laggards in terms of their sustainability performance, inform decision making across procurement, product development and logistics teams regarding which interventions can deliver the most significant emission reductions, encourage product innovation to create more sustainable and energy-efficient products, advance their climate strategy to create genuine, quantifiable, and visible change, and positively engage with employees to reduce emissions from business travel and employee commuting.
What are the materials used in scope 3 emissions?
Scope 3 emissions come from an array of places—vehicles that transport clothing to retailers, energy used in manufacturing (if at facilities not owned by the company, otherwise, these would be scope 1), energy used to grow raw material, energy used by consumers to wash and dry the clothing, and the greenhouse gas emissions generated as the materials decay in a landfill1. The materials used in Scope 3 emissions can vary depending on the industry and the specific activities of the company.
Are Scope 3 emissions the largest?
Scope 3 emissions are often the largest share of a company’s carbon emissions—typically 80–90%1. This is because they include all indirect emissions that occur in the value chain of a company, both upstream and downstream. For example, for an oil company, the Scope 1 and 2 emissions are only a small proportion of its related emissions, whereas the consumption and combustion of their products contribute the most emissions (Category 11 – Use of sold products).