Why Scope 3 Emissions Hold the Key to Meaningful Climate Action and Carbon Footprint Reduction

A net zero strategy is becoming an increasingly important priority for businesses, and addressing Scope 3 emissions is an integral part of this. For meaningful climate action to occur, Scope 3 emissions need to receive attention. Discover more about the impact of Scope 3 emissions on a company’s environmental impact analysis.

What Are Scope 3 Emissions?

Before we can understand the role that Scope 3 emissions play in greenhouse gas emissions reduction, we must first learn what Scope 3 emissions are. Scope 3 emissions are all indirect emissions that take place in a company’s value chain, including both upstream and downstream emissions.

The Effect of Scope 3 Emissions on a Company’s Carbon Footprint Analysis

CDP has reported that Scope 3 emissions account for roughly 75 per cent of a company’s emissions. That said, the amount of Scope 3 emissions can vary significantly depending on the sector; for instance, it’s estimated that Scope 3 emissions account for 99.98 per cent of emissions for companies in the financial services sector. Meanwhile, some other studies have shown that the supply chains of eight sectors account for 50 per cent of the Earth’s GHG emissions.

The Challenges in Addressing Scope 3 Emissions

Since Scope 3 emissions fall outside of a company’s direct ownership or control, addressing them can be both complex and challenging. Scope 3 emissions cover a wide array of categories, including downstream and upstream transportation and distribution and the use and processing of sold products, purchased goods, leased assets, and End-of-Life treatment. Therefore, it can sometimes be implausible for companies to gain visibility or influence over emissions reduction measures outside of their own organisations. 

In spite of these challenges, it’s vital that companies do all they can to address their Scope 3 emissions, as failing to do so means ignoring a considerable portion of their climate impact. By overlooking such substantial figures, an organisation will only be left with incomplete carbon management strategies.

A Comprehensive Approach to Tackling Scope 3 Emissions

In order to successfully address Scope 3 emissions, companies need to implement and follow a comprehensive approach. Environmental impact solutions need to consider product design, material selection, logistics, and the adoption of circular economy practices, including recycling, reusing, and efficiently using resources.

As a result, sustainable business solutions go way beyond the company itself. Sustainable operations management means adjusting the roles of all players in the value chain accordingly. Doing this means transparently collaborating with all supply chain stakeholders, and these stakeholders will need to fulfil their responsibilities of making the necessary changes. This collaboration is essential for taking a stand against climate change. 

Combatting Scope 3 Emissions via Carbon Accounting Services

Here at Oakdene Hollins, we provide sustainability consulting services to companies looking to make a meaningful change when it comes to climate action. We understand the struggle of gathering information and deciphering Scope 3 emissions, so we’re here to make the process a whole lot smoother. With our sustainability reporting services, it becomes that much easier to gain a comprehensive understanding of your company’s emissions, so don’t hesitate to learn more.