Greenhouse Gas (GHG): time to work on Scope 3!

Is your company working on reducing its emissions?

Greenhouse gas (GHG) is used to categorize different sources of emissions that organizations are responsible for. By breaking down emissions into three different Scopes, a company can effectively target its efforts to reduce its overall carbon footprint, focusing on its direct operations and broader value chain.

Here's a simplified Scopes 1, 2, and 3 guide.

Scope 1: Emissions directly from company-owned sources (e.g., company vehicles, on-site fuel combustion).

Scope 2: Emissions from producing the electricity, heating, or cooling that the company purchases and uses.

Scope 3: All other indirect emissions associated with the company's activities, such as supply chain emissions, product usage, and waste management.

Here is the tricky part: Until recently, most companies mainly reported on their Scope 1 and 2 emissions, which are relatively easy to control and report. However, Scope 3 has the highest emissions, roughly 70% or higher. All work on reducing emissions is good, but it's time to work on where the real problem lies in Scope 3. The new EU regulation #CSRD is a game changer; it requires companies to report on their Scope 3 emissions.

This is where things get interesting and where real change is happening. Identifying Scope 3 emissions will help the company understand where fundamental reductions can be made. Transparency provides companies with information that allows them to look into their supply change provider. It will open up the opportunity to develop new partnerships with suppliers that work towards a positive climate impact.

If we should have a chance to fight climate change, understanding and working with Scope 3 emissions is a must.

#emission #reduction #climateaction #Scope3