Scope 3 emissions can account for up to 80% of total GHG emissions. They have the potential to dominate the overall carbon footprint, which in turn can put a company’s net zero or decarbonization approach and SBT initiatives at risk.
In the past, the focus of corporate climate strategies used to be on direct emissions (Scope 1) and emissions resulting from secondary energy sources (Scope 2). Today, there is an increasing need for transparency of Scope 3 upstream and downstream emissions.
One of the main challenges is the lack of transparency regarding the amount, the calculation, and the relevance of Scope 3 emissions categories. While the relevance of categories can vary from industry to industry, there is a common understanding that “3.1 Purchased goods and services” and “3.11 Use of sold products” are the two main Scope 3 emission hotspots. Companies need to work through an extensive GHG Protocol guideline with different approaches to calculate the related emission, which is an additional burden when determining 3.1 and 3.11 emissions.
The second big challenge is the lack of personnel resources and know-how that hamper companies from starting their Scope 3 analysis and management. Not only do the importance and scale of the Scope 3 categories vary between industries, but there is also a lack of a uniform approach to collecting, calculating, and managing Scope 3 emissions.
How Can the Right Software Help Lead the Way?
While the challenges seem to be overwhelming, we can help with our Corporate Sustainability software to:
