Having explored the first steps towards net zero carbon emissions, Decarbonisation Lead, Martin Gibson, highlights the importance of understanding the different scopes of emission and how this can support your organisation's journey to net zero.
What are the different scopes of carbon emission?
When looking at carbon emissions, organisations around the world follow the Greenhouse Gas Protocol. This helps people to understand and report on carbon emissions in a way that has similarities with financial accounting. It sets out three ‘scopes’ of emissions. The definitions of these scopes are quite technical, but in essence they are:
- Scope 1 – direct emissions from activities that your organisation does, such as burning fuels
- Scope 2 – emissions from the electricity and heat your organisation purchases
- Scope 3 – other indirect emissions – effectively the emissions related to all the goods and services you buy and the emissions from the use of your products or services
Scopes 1 and 2 must be included when reporting greenhouse gas emissions, but what is included in any reporting on scope 3 is usually optional.
What are the benefits of tracking scope 3 emissions?
In most sectors, scope 3 emissions dwarf the combined scope 1 and 2 emissions. Typically, they are the emissions which you have the least amount of control over, which means addressing them can be daunting.
However, the benefits of looking at scope 3 emissions can be considerable. It can help to engage staff, suppliers and customers. It may help to reduce costs and will certainly help to understand the risks associated with climate change. More importantly, it can help make a big difference in reducing climate change impacts.
The Greenhouse Gas Protocol suggests choosing what scope 3 emissions to report by considering:
- Are the emissions likely to be large?
- Do they contribute to the exposure to risk?
- Are they critical to stakeholders?
- Can you influence reducing the emissions?
We would also suggest that you consider whether they help influence the thinking of others. For example, we have included staff commuting and home working in our reporting from an early stage. For us, this was seen to be quite a visible contributor to emissions and one where we had an influence. Perhaps more importantly, it also helped engage our colleagues and visitors.
Who can help track scope 3 emissions?
When you look at scope 3 emissions, engaging with your finance and procurement teams is critical. They have access to data on quantities that will be needed to make emissions calculations. They may also have contacts with suppliers who will be able to provide information on the emissions from their products and services. At JBA, we have included carbon requirements in our Sustainable Procurement policies. These are designed to set standards but also encourage suppliers to improve.
So, although it may seem daunting, looking at Scope 3 emissions can be very rewarding. You might find ways to reduce cost and your environmental impact. You are likely to increase engagement with a range of stakeholders and it may spur innovation in your approach to business.
Contact Martin Gibson for more information about how we can support you in achieving your net zero targets.
