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Submitted URL: https://go.adec-innovations.com/e/952162/uf0BP/5qpfq/350145861?h=7HNQhXtt_idPCoW6V6pcMCqZisrMug2FORZZP56-zsI
Effective URL: https://marketplace.adec-innovations.com/blogs/disclosing-scope-3-emissions-are-you-ready/?utm_medium=email&utm_source=pardot&utm_campaig...
Submission: On September 26 via manual from US — Scanned from DE
Effective URL: https://marketplace.adec-innovations.com/blogs/disclosing-scope-3-emissions-are-you-ready/?utm_medium=email&utm_source=pardot&utm_campaig...
Submission: On September 26 via manual from US — Scanned from DE
Form analysis 5 forms found in the DOM
GET https://marketplace.adec-innovations.com/search-results
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<a href="/privacy-statement/" target="_blank">Privacy Statement</a> for more information. </span>
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<option value="Congo">Congo</option>
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<option value="Cote d'Ivoire">Cote d'Ivoire</option>
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<option value="Holy See (Vatican City State)">Holy See (Vatican City State)</option>
<option value="Honduras">Honduras</option>
<option value="Hong Kong">Hong Kong</option>
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<option value="Korea">Korea</option>
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<option value="Luxembourg">Luxembourg</option>
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<option value="Madagascar">Madagascar</option>
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<option value="Martinique">Martinique</option>
<option value="Mauritania">Mauritania</option>
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<option value="Moldova">Moldova</option>
<option value="Monaco">Monaco</option>
<option value="Mongolia">Mongolia</option>
<option value="Montenegro">Montenegro</option>
<option value="Montserrat">Montserrat</option>
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<option value="Mozambique">Mozambique</option>
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<option value="Sint Maarten (Netherlands)">Sint Maarten (Netherlands)</option>
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<option value="Svalbard & Jan Mayen Islands">Svalbard & Jan Mayen Islands</option>
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<option value="Switzerland">Switzerland</option>
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<option value="Thailand">Thailand</option>
<option value="Timor-Leste">Timor-Leste</option>
<option value="Togo">Togo</option>
<option value="Tokelau">Tokelau</option>
<option value="Tonga">Tonga</option>
<option value="Trinidad and Tobago">Trinidad and Tobago</option>
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<option value="Turkey">Turkey</option>
<option value="Turkmenistan">Turkmenistan</option>
<option value="Turks and Caicos Islands">Turks and Caicos Islands</option>
<option value="Tuvalu">Tuvalu</option>
<option value="U.S. Virgin Islands">U.S. Virgin Islands</option>
<option value="U.S. Minor Outlying Islands">U.S. Minor Outlying Islands</option>
<option value="Uganda">Uganda</option>
<option value="Ukraine">Ukraine</option>
<option value="United Arab Emirates">United Arab Emirates</option>
<option value="Uruguay">Uruguay</option>
<option value="Uzbekistan">Uzbekistan</option>
<option value="Vanuatu">Vanuatu</option>
<option value="Venezuela">Venezuela</option>
<option value="Vietnam">Vietnam</option>
<option value="Wallis and Futuna">Wallis and Futuna</option>
<option value="Western Sahara">Western Sahara</option>
<option value="Yemen">Yemen</option>
<option value="Zambia">Zambia</option>
<option value="Zimbabwe">Zimbabwe</option>
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<option value="Turkey">Turkey</option>
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<option value="Ukraine">Ukraine</option>
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<option value="Uruguay">Uruguay</option>
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Home Resources Disclosing Scope 3 Emissions – Are You Ready?
DISCLOSING SCOPE 3 EMISSIONS – ARE YOU READY?
Article
ADEC Innovations | Sep 19, 2023
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Scope 3 emissions are indirect GHG emissions resulting from a company’s
activities generated from sources not owned or controlled by that company.
Gathering accurate and actionable data on Scope 3 greenhouse gas (GHG) emissions
is a huge challenge for the thousands of companies globally that will need to
comply with EU and US climate disclosure rules. And while there is no
one-size-fits-all roadmap for gathering this data, the challenges are hardly
insurmountable.
WHAT ARE SCOPE 3 EMISSIONS?
Scope 3 emissions are indirect GHG emissions resulting from a company’s
activities generated from sources not owned or controlled by that company. These
emissions extend beyond direct operations (Scope 1 emissions) and indirect
energy consumption (Scope 2 emissions). Instead, they encompass the entire
lifecycle of a product or service, from raw material extraction to end-of-life
disposal, considering the entire supply chain. As such, Scope 3 emissions often
comprise up to 90% of a company’s total emissions, depending on the industry.
WHICH SCOPE 3 CATEGORIES ARE RIGHT FOR YOU?
In GHG Protocol-speak, “setting the organizational boundary” means determining
which categories of Scope 3 emissions to include in your company’s inventory.
With 15 different categories of emissions to choose from, that can take some
work. The GHG Protocol’s approach requires companies to determine which Scope 3
emissions categories they use based on what’s called the “relevance test.” Some
of the factors for determining relevance include:
* Size: Companies should prioritize measuring emissions from activities that
contribute significantly to the company’s total expected Scope 3 emissions.
* Influence: Companies should focus on measuring emissions that the business is
well positioned to directly reduce or influence.
* Risk: Companies should prioritize measuring those emissions that most
contribute to the firm’s operating, strategic, regulatory or reputational
risk exposure.
* Stakeholders: Companies should prioritize emissions deemed critical by key
stakeholders (e.g., customers, suppliers, investors or civil society).
You can find the Scope 3 categories most likely to be important for your sector
in CDP’s guidance and in the standards developed by the Sustainability
Accounting Standards Board (SASB). However, to do this well, many companies seek
out external expertise to determine their material categories using the
relevance test.
HOW TO CLIMB THE GHG EMISSIONS CALCULATION “LADDER”
Many companies start out measuring their Scope 3 inventories using methods that
rely heavily on rough “spend-based” estimates. This is a good start, but growing
interest in Scope 3 data from regulators, investors and customers means that
data quality must improve.
Generally speaking, a higher-quality Scope 3 data collection strategy
prioritizes gathering data using calculation methods that are higher on the GHG
calculation method “ladder,” such as activity or hybrid-based calculation
approaches that leverage primary supplier data.
Each Scope 3 category has its own rules around how to calculate emissions, so we
recommend reviewing the GHG Protocol’s Corporate Value Chain (Scope 3)
Accounting and Reporting Standard for guidance on various calculation methods.
ADEC ESG Solutions also provides a useful guide on Carbon Accounting Methods for
Estimating Scope 3 Emissions and how to better understand your GHG inventory.
FED UP WITH BEING IGNORED? ENGAGE SUPPLIERS EFFECTIVELY, AT SCALE.
For many organizations, Scope 3 emissions and supplier engagement are almost
intrinsically linked. However, suppliers can naturally be reluctant to answer
emissions data requests, and resources are often short to chase them down or
incentivize and support their efforts.
So, how should you engage suppliers at scale in an efficient and productive way?
Software is one part of the answer – SaaS-based solutions can help you
efficiently and thoughtfully engage and collect data from your suppliers. But
additional people are needed. Many companies extend the reach of their
sustainability and procurement teams through outsourced experts who sit in the
time zones and speak the languages of their suppliers, assisting with data
collection while also delivering technical assistance and emissions reduction
advising.
GETTING AHEAD OF THE CURVE WITH SCOPE 3 DATA
Deliver your audit-ready Scope 3 data using a strong foundation of well-defined
boundaries, robust calculation approaches and high-quality supplier reporting.
ADEC’s Scope 3 solution helps clients gather, process, visualize and deliver
Scope 3 data where it’s needed, when it’s needed, so you can meet compliance
requirements and gain the insights you need to achieve meaningful emissions
reductions.
Find out more
ADEC INNOVATIONS
ADEC Innovations’ environmental, social and governance (ESG) business advances
sustainable practices around the world and helps organizations responsibly grow
and operate.
Previous
Feb 27, 2023
NAVIGATING ESG FRAMEWORKS WITH BUSINESS INTELLIGENCE
By 2025, the amount of data generated each day is expected to reach 463 exabytes
globally.
Aug 16, 2023
7 SUPPLY CHAIN BEST PRACTICES FOR ESG
In businesses where supply chain management is critical, Environmental, Social
and Governance (ESG) considerations are integral to success and longevity.
Dec 23, 2022
WHAT IS A SUSTAINABLE SUPPLY CHAIN?
Over the past decade and into the new one, there has been a marked shift towards
corporate sustainability, transparency, and accountability.
Next
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