What are Scope 3 emissions, how can they be measured and what benefit is there to organisations measuring them?
What are Scope 3 emissions?
Greenhouse gas emissions are categorised into three groups or 'Scopes' by the most widely-used international accounting tool, the Greenhouse Gas (GHG) Protocol. Scope 1 covers direct emissions from owned or controlled sources. Scope 2 covers indirect emissions from the generation of purchased electricity, steam, heating and cooling consumed by the reporting company. Scope 3 includes all other indirect emissions that occur in a company’s value chain.
Scope 1
Fuel combustion
Company vehicles
Fugitive emissions
Scope 2
Purchased electricity, heat and steam
Scope 3
Purchased goods and services
Business travel
Employee commuting
Waste disposal
Use of sold products
Transportation and distribution (up- and downstream)
Investments
Leased assets and franchises
Why should an organisation measure its Scope 3 emissions?
There are a number of benefits associated with measuring Scope 3 emissions. For many companies, the majority of their greenhouse gas (GHG) emissions and cost reduction opportunities lie outside their own operations. By measuring Scope 3 emissions, organisations can:
Assess where the emission hotspots are in their supply chain;
Identify resource and energy risks in their supply chain;
Identify which suppliers are leaders and which are laggards in terms of their sustainability performance;
Identify energy efficiency and cost reduction opportunities in their supply chain;
Engage suppliers and assist them to implement sustainability initiatives
Improve the energy efficiency of their products
Positively engage with employees to reduce emissions from business travel and employee commuting.
Original source: Carbon Trust
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