Your carbon roadmap - should it include Scope 3 emissions?
Understanding the importance of measuring Scope 3 emissions as part of your carbon reduction strategy
Global awareness is shifting towards sustainability, and businesses and institutions worldwide are embracing
strategic carbon reduction like never before. With climate change at the forefront of global concerns, organisations are developing carbon roadmaps to strategically reduce their carbon footprints. A carbon roadmap is a strategic blueprint outlining the steps a company will take to achieve significant carbon reduction over time. Beyond immediate actions, this plan establishes clear long-term goals for enhancing sustainability, improving energy efficiency, and minimising overall environmental impact.
One of the most debated components of a carbon roadmap is the inclusion of Scope 3 emissions. While Scope 1 and Scope 2 emissions — direct emissions from owned or controlled sources and indirect emissions from the generation of purchased electricity, respectively — are more straightforward to measure. Scope 3 emissions are a bit more challenging because these emissions result from sources not owned or directly controlled by the company, such as those produced by suppliers, transportation, and even customers.
We often get asked: why include Scope 3 emissions in my carbon roadmap? Why should my company be counting emissions from another company?
So, let's find out.
The scope of the matter - what are Scope 3 emissions?
When it comes to reducing carbon emissions, Scope 3 emissions are where the rubber meets the road. Unlike Scope 1 and Scope 2 emissions, which are more direct and easier to quantify, Scope 3 emissions encompass a wide array of indirect emissions. These are emissions that occur up and down the value chain of your organisation. In simpler terms, they are the result of activities from assets not owned or directly controlled by the reporting company but are necessary to its operations.
Scope 3 emissions include everything from the production of purchased goods and services, business travel, employee commuting, waste disposal, and even the use of sold products. Essentially, these emissions cover the full lifecycle of your product or service — from raw material extraction to end-of-life disposal.
This varied category often makes Scope 3 the most challenging to measure and manage. However, it also represents the largest share of a company’s total greenhouse gas emissions. By understanding and addressing Scope 3 emissions, your business can uncover significant opportunities for carbon reduction that might otherwise be overlooked. Let's take a closer look at why the measurement of Scope 3 needs to be included in your carbon roadmap.
Emission Impossible? Why measuring Scope 3 emissions matter for your carbon roadmap
Including Scope 3 emissions in your carbon roadmap might initially seem counterintuitive. However, the logic is straightforward: while you may not directly control these emissions, you do have a significant influence over them.
For example, when choosing your freighting method or business travel options, you can select companies and methods that align with your sustainability goals. By leveraging this influence, you can encourage your partners to improve their sustainability performance, encouraging long-term relationships that benefit both parties. This collaborative approach can lead to mutual improvements in carbon footprinting, ultimately contributing to a more sustainable supply chain.
To effectively encourage these changes, you need to account for the emissions generated by your supply chain in your overall carbon footprint. By doing so, you recognise the full impact of your operations and can implement strategies to mitigate it. For instance, while you may not control how wastewater is treated on a municipal scale, you can influence the amount of wastewater your company discharges, thereby reducing your indirect emissions.
Setting targets for Scope 3 emissions is particularly important for companies where these emissions make up a significant portion of their total carbon footprint. If Scope 3 emissions account for more than 40% of your total Scope 1, 2, and 3 emissions, then you must establish a Scope 3 target. By doing so, you can drive substantial carbon reduction efforts, ensuring a comprehensive and effective carbon reduction strategy.
Don't let Scope 3 be the missing piece of your carbon reduction puzzle
You'll see now why measuring Scope 3 emissions is an essential element of your comprehensive carbon roadmap. While it may seem unconventional to account for emissions beyond your direct control, doing so allows you to leverage its influence across the value chain, strengthening sustainability improvements and building stronger, more resilient business relationships. By including Scope 3 emissions, you can uncover significant opportunities for carbon reduction, drive innovation, and enhance your competitive edge.
Download our Carbon Roadmap eGuide for a clear, strategic approach to navigating this complex process, addressing the full spectrum of your carbon footprint.
Focusing on action we can take today, to make a difference tomorrow.
