When we talk about reducing greenhouse gas emissions, it's not just about what's generated directly from our own operations or activities (Scope 1) or the energy we purchase (Scope 2). There's a third, less visible category known as Scope 3 emissions, which encompasses indirect emissions along the entire value chain of an organisation. In this article, we'll explore what Scope 3 emissions are and look at some strategies to reduce them.

What Are Scope 3 Emissions?

Scope 3 emissions, as defined by the Greenhouse Gas Protocol, are indirect emissions associated with a company's activities, but occur from sources not owned or controlled by that company. Scope 3 emissions are often the largest and most challenging emissions category to address but also offer significant opportunities for reduction.

Common examples of Scope 3 Emissions:

• Business Travel: encompasses the greenhouse gas emissions generated as employees travel for work-related purposes (excluding commuting which is a separate category of scope 3 emissions). This category includes emissions from air travel, ground transportation, and even hotel stays.

• Purchased Goods and Services: represent a substantial source of Scope 3 emissions for many organisations. These emissions originate from the entire supply chain of products and services procured by the company, encompassing activities such as raw material extraction, manufacturing, transportation, and energy consumption by service providers.

• Upstream Transportation and Distribution: refers to the greenhouse gas emissions produced during the transportation of raw materials, components, and finished products within the supply chain of an organisation. These emissions occur before the goods or materials reach the organisation's direct control.

Refer to the Greenhouse Gas Protocol (linked above) for more details on the 15 categories of scope 3 emissions.

Strategies to Reduce Scope 3 Emissions

• Supply Chain Optimization: Work closely with your suppliers to identify and reduce emissions within your supply chain. Encourage sustainable practices, reduce waste, and optimise transportation for lower emissions.

• Product Design and Efficiency: Redesign products to be more energy-efficient and durable. Consider using materials with lower emissions throughout their life cycle.

• Circular Economy Approaches: Promote recycling and reusing products to reduce end-of-life and waste emissions. 

• Sustainable Transportation: If your business involves transportation, consider shifting to electric or hybrid vehicles and optimising routes to reduce emissions.

• Sustainability Reporting: Transparently report your Scope 3 emissions. This can incentivise suppliers and customers to make more sustainable choices.

• Collaboration: Partner with industry peers and organisations to collectively address supply chain emissions. Initiatives like the Science-Based Targets Initiative provide frameworks for setting and achieving emissions reduction targets.

• Carbon Offsetting: While not a direct reduction method, investing in credible, high quality carbon offset projects can help compensate for emissions that are challenging to eliminate entirely.

Reducing Scope 3 emissions is a complex but crucial part of any comprehensive climate action plan. By understanding and addressing these indirect emissions across your value chain, your organisation can make a significant contribution to mitigating climate change. Collaborative efforts, innovation, and a commitment to sustainability can pave the way for meaningful reductions in Scope 3 emissions and a more sustainable future. Reach out to the Trace team for more information on how we can help you with your scope 3 emissions reduction journey.

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