Assessing Scope 3 emissions

In today's business landscape, the assessment of Scope 3 emissions is increasingly crucial. These emissions, although indirect and stemming from a company's supply chain, often represent the majority of its overall emissions. Understanding and managing these emissions is vital for any organization committed to making meaningful sustainability changes.

What are Scope 3 emissions?
Scope 3 emissions encompass all indirect emissions that occur in a company's supply chain, including both upstream and downstream activities. These emissions typically extend beyond the direct control of the company, such as the production of purchased goods and services, business travel, employee commuting, waste disposal from operations, and the lifecycle of sold products. 

Assessing Scope 3 emissions: A step-by-step guide

Step 1: Defining the scope
Determine the relevant Scope 3 emission sources for your business. Not all sources may apply or have significant impact.

Step 2: Gathering data
Collect data related to the identified emission sources. This step often involves collaboration with various stakeholders in the value chain.

Step 3: Emissions calculation
Apply methodologies like the Greenhouse Gas Protocol to convert activity data into GHG emissions, using appropriate emission factors.

Step 4: Analyzing and strategizing
Analyze the data to identify major emission sources and develop strategies to mitigate these emissions. This could involve supply chain optimization, product design changes, or investment in low emission technologies.

Step 5: Reporting
Maintain transparency in reporting Scope 3 emissions, utilizing platforms such as the Greenhouse Gas Protocol to communicate your environmental impact to stakeholders. 

Step 6: Review and Adaptation
Regularly review the assessment process and adapt as necessary to ensure ongoing relevance and effectiveness.

Carbon Accounting and Reporting Frameworks
In addition to the Greenhouse Gas Protocol's Corporate Value Chain (Scope 3) Standard, there are other frameworks that provide valuable guidance for carbon accounting and reporting:

• ISO 14064-1: Part of the ISO 14064 series, this standard provides a comprehensive approach for organizations to quantify and report greenhouse gas emissions and removals at the organizational level.
• The Climate Registry (TCR): TCR provides a system for measuring, reporting, and verifying emissions, suitable for entities participating in voluntary carbon markets or regional regulatory initiatives.
• Carbon Disclosure Project (CDP): The CDP framework helps companies disclose, manage, and share environmental information, including greenhouse gas emissions. It's a widely respected tool for transparent reporting and stakeholder engagement in environmental accountability.

These tools complement each other and offer diverse approaches to Scope 3 emissions assessment, catering to various organizational needs and reporting objectives.

Practical considerations

• Prioritization: Focus on the most significant sources of emissions in your value chain.
• Continuous Improvement: Scope 3 emissions assessment is an ongoing process that evolves with your business and the broader environmental context.
• Stakeholder Engagement: Effective management of Scope 3 emissions often requires engaging with a range of stakeholders, including suppliers, customers, and investors.