Reporting on Scope 3 Emissions is Vital to Your Sustainability Goals
When companies start work on reducing their GHG emissions, the natural thing is to look inward. Companies focus on Scope 1 emissions from on-site production and the use of company vehicles. While this is a great start, it doesn’t provide a full view of your company’s environmental impact.
In many cases, the largest contributors to your GHG emissions are in the form of indirect Scope 3 emissions. For example, in the health sector, they account for up to 82% of emissions.
According to the EPA, Scope 3 emissions are “the result of activities from assets not owned or controlled by the reporting organization, but that the organization indirectly impacts in its value chain.”
Most regulatory bodies do not require Scope 3 emissions reporting, but we recommend it to understand the real impact of your company’s sustainability efforts. Unfortunately, reporting can be difficult due to the vastness of the category and challenges in collecting data.
In this blog, we go a little more in-depth into what Scope 3 emissions entail and explain how Environ can help to optimize your company’s Scope 3 emissions reporting.
What Do Scope 3 Emissions Include?
Scope 3 emissions include those processes that are upstream and downstream of your company’s operations. In all, there are 15 different categories included in this scope though not all will pertain to your operations. We recommend checking out this streamlined infographic to understand better what the EPA considers Scope 3 emissions.
A good way to think about it is to consider everything needed before you begin production and everything required to deliver your services to clients. For example, say you’re a company that builds furniture. Your Scope 3 emissions would need to factor in the raw materials you purchase, the fuel used to transport them to your property, and any associated waste. Further downstream, these emissions include the transport to the buyer and even the furniture’s end-of-life treatment.
What is the Best Way to Report on Scope 3 Emissions?
The GHG Protocol provides various resources for calculating emissions for each Scope 3 category and how to best screen organizations. While helpful, these are best used with energy consultants like Environ, who are experts at compiling emission reports.
Our team will combine primary data related to your value chain and secondary information from industry averages and proxy data. We’ll use that data to create comprehensive reports that make it easier for your company to see what role Scope 3 emissions play in your sustainability efforts and help you identify problem areas in your product lifecycle.
With major multinational companies like 3M and Pepsi already testing new Scope 3 standards, the hope is that these will become a permanent part of future emissions reporting. Is your company ready to take the next step to sustainability by integrating Scope 3 emissions reporting? Contact our team by calling or filling out our contact form to learn more.