Explore Scope 3 GHG emissions, the largest and most complex category, and learn how to manage them effectively. Enhance your ESG strategy with this comprehensive guide.”
Dive into the intricate world of Scope 3 GHG emissions, encompassing indirect emissions across your entire value chain. This in-depth guide provides essential insights and actionable steps to help businesses tackle the most challenging aspect of their carbon footprint. By mastering Scope 3 emissions, you can significantly enhance your sustainability efforts and lead in the ESG space. Equip your business with the knowledge and tools from ESG Pro to drive impactful change.
Scope 3 Emissions
Extended Responsibility: Unravelling Scope 3 Emissions Across the Value Chain
1. Introduction to Scope 3 emissions
Scope 3 emissions are a category of indirect greenhouse gas (GHG) emissions associated with a company’s activities but occurring from sources that the company does not own or directly control. These emissions are the result of activities from assets not owned or controlled by the reporting organisation, but that the organisation indirectly impacts in its value chain. Scope 3 emissions often represent the largest source of a company’s carbon footprint and include both upstream and downstream emissions.
2. Upstream Emissions
Upstream emissions are related to the production of goods or services before they reach the company. Examples include:
Purchased Goods and Services: Emissions from the production of goods and services that the company purchases or acquires.
Capital Goods: Emissions from the creation of physical assets used by the company.
Fuel- and Energy-related Activities: Emissions related to the production of fuel and energy purchased and consumed by the company, which are not covered in Scope 1 or 2.
Transportation and Distribution (upstream): Emissions from the transportation and distribution of products in vehicles or facilities not owned or controlled by the company, before they reach the company.
Waste Generated in Operations: Emissions from the disposal and treatment of waste generated in the company’s operations.
Business Travel: Emissions from transportation used for business travel by employees.
Employee Commuting: Emissions from the transportation of employees between their homes and their workplace.
Leased Assets (upstream): Emissions from the operation of assets leased by the company, when the leasing does not result in Scope 1 or 2 classification.
3. Downstream Emissions
Downstream emissions are related to the processing, use, and end-of-life treatment of sold products. Examples include:
Transportation and Distribution (downstream): Emissions from the transportation and distribution of products in vehicles or facilities not owned or controlled by the company, after they have been sold or transferred to the consumer.
Processing of Sold Products: Emissions from the processing of intermediate products into a final product by a third party.
Use of Sold Products: Emissions resulting from the use of goods and services sold by the company in the reporting year.
End-of-Life Treatment of Sold Products: Emissions from the disposal or recycling of products at the end of their life.
Leased Assets (downstream): Emissions from the operation of assets leased out by the company, when the leasing does not result in Scope 1 or 2 classification.
Franchises: Emissions from the operation of franchises not owned or controlled by the company.
Investments: Emissions associated with investments in other companies.
4. Conclusion
Tackling Scope 3 emissions, which encompass all indirect emissions not covered by Scope 1 and 2, is essential for companies aiming for comprehensive sustainability. This involves a strategic approach to understanding and mitigating emissions across the entire value chain, from procurement and manufacturing to the end use of products and beyond. By engaging with suppliers, optimising logistics, and encouraging sustainable practices among consumers, companies can make significant strides in reducing their broader environmental impact. This effort not only aligns with global sustainability goals but also strengthens stakeholder relationships and enhances corporate reputation, marking a decisive step towards a more sustainable and accountable future.
Why ESG Pro Limited is the Ideal Partner for your GHG reporting and Corporate Net Zero Pledge
Expertise in ESG and Science-Based Targets
ESG Pro Limited brings deep expertise in ESG (Environmental, Social, and Governance) practices, with a strong focus on setting and achieving science-based targets. Whether it’s conducting Materiality Assessments or providing detailed GHG carbon emissions reporting, ESG Pro offers tailored support to ensure your Corporate Net Zero Pledge is both credible and impactful.
In-depth knowledge of ESG and sustainability practices
Expertise in setting and achieving science-based targets
Proven success in helping businesses avoid greenwashing risks
Customised Strategies for Achieving Net Zero
At ESG Pro Limited, we recognise that every business is unique, and so is its path to Net Zero. Our consultants work closely with your team to develop customised strategies that align with your specific goals and challenges, ensuring that your Net Zero pledge is both achievable and sustainable.
Tailored Net Zero strategies based on your business needs
Support in navigating regulatory requirements and compliance
Ongoing consultancy to ensure continued progress and transparency
Commitment to Long-Term Sustainability
Our commitment to your success goes beyond helping you make a pledge—we are dedicated to supporting your company throughout its sustainability journey. ESG Pro Limited offers long-term partnerships focused on achieving and maintaining your Corporate Net Zero Pledge, ensuring that your efforts result in lasting, positive change.
Long-term commitment to environmental stewardship
Continuous support and consultancy services
Focus on building a credible, impactful Net Zero strategy