Achieving Control Over Greenhouse Gas Emissions in Extended Supply Chains for a More Sustainable Business Network
Reducing a company's carbon footprint is a critical challenge in today's world, and addressing Scope 3 emissions is a significant part of this endeavour. These indirect emissions, as defined by the Greenhouse Gas (GHG) Protocol, occur outside a company's direct operations and are not included in Scope 2.
Scope 3 emissions encompass a wide range of activities, from the procurement of raw materials to the disposal and usage of sold products. These activities include transportation, business travel, and investments in financial portfolios. The GHG Protocol separates Scope 3 emissions into 15 different categories to help businesses find and arrange their several sources of indirect emissions.
The upstream activities in Scope 3 include purchased goods and services, capital goods, fuel- and energy-related activities, upstream transportation and distribution, waste generated in operations, business travel, employee commuting, and upstream leased assets. On the other hand, downstream activities include downstream transportation and distribution, processing of sold products, use of sold products, end-of-life treatment of sold products, downstream leased assets, franchises, and investments.
Addressing Scope 3 emissions requires cooperation across the entire value chain and interaction with suppliers, consumers, and other partners. Involving suppliers in the measurement, management, and reduction of their own emissions is a key strategy. Teaching consumers how to dispose of goods responsibly and use them more sustainably can help address scope 3 emissions in the "use of sold products" category.
Setting specific, quantifiable goals for scope 3 emissions reduction and tracking progress can lead to adjustments in plans as necessary. Appropriate categorization is the first step towards focused data collecting and successful reduction techniques for Scope 3 emissions. Estimating emissions from millions of consumers or gathering accurate data from hundreds or thousands of vendors can be challenging, but it is an essential step in the process.
Ignoring Scope 3 emissions results in a major piece of the puzzle missing and a great lost chance for influence. Addressing these emissions offers benefits beyond a reduced carbon footprint, including lowering reputational risk, finding cost savings, identifying new business opportunities, and promoting more sustainable and resilient supply chains.
Incorporating environmental criteria into procurement rules and giving priority to suppliers with good environmental performance can help lower carbon footprints. Rethinking product design to cut lifetime emissions through the use of lower-carbon materials, designing for recyclability, durability, or increasing energy economy during the use phase can be effective.
By addressing Scope 3 emissions, companies can take a comprehensive approach to reducing their carbon footprint and contribute to a more sustainable future.
[1] Greenhouse Gas Protocol. (n.d.). Scope 3 Standard. Retrieved from https://www.ghgprotocol.org/scope-3 [2] World Resources Institute. (n.d.). Scope 3 Emissions. Retrieved from https://www.wri.org/resources/all-resources/?q=scope%203%20emissions [3] Carbon Disclosure Project. (n.d.). Scope 3 Reporting. Retrieved from https://www.cdp.net/en/companies/scope-3-reporting
- Implementing environmental criteria in the procurement process, particularly favoring suppliers with excellent environmental performance, can be a significant step in reducing a company's carbon footprint, as outlined by sources such as the Carbon Disclosure Project.
- By teaching consumers how to dispose of products responsibly and use them more sustainably, businesses can help reduce Scope 3 emissions, particularly in the "use of sold products" category – a concept further elaborated on by resources like the World Resources Institute.
- As noted by the Greenhouse Gas Protocol, Scope 3 emissions encompass various activities within industries, such as finance and business, including investments in financial portfolios, and addressing these emissions can offer benefits beyond just a reduced carbon footprint, as the same source indicates.
