By Jeff Dyra | June 19, 2023
We focused on Scope 1 and Scope 2 emissions in previous articles; now, let us talk about Scope 3 emissions and how they affect your ESG goals.
What are Scope 3 emissions?
They are emissions that are generated when a product is being created. They are considered the most complex and hardest to track out of the three types of emissions. This is because a company does not directly control them.
There are 15 categories of Scope 3 emissions to measure, broken down further into upstream and downstream activities. This division of activities also affects the supply chain of a company. Each member must adjust their energy consumption and purchasing strategy to meet the Scope 3 requirements set by the end-product seller.
Upstream Emissions = all emissions resulting in an organization’s work to secure and manufacture the purchased goods and services.
- Transportation of products
- Waste generation in operations
- Fuel for employees to commute to work
- Business travel to finalize sales
Downstream Emissions = encompasses the period after the goods/services have left the company’s facility
- Delivery trucks
- Contact made with local stores/vendors
- End users
- Anything related to the supply chain
There are many moving parts to consider when tracking Scope 3 emissions. Getting started is often the most challenging part! Our advisors can help you determine what to start measuring and help you set up a plan to meet your Scope 3 ESG goals. We can let you know what options for tracking are available in your area.
Achieving NET Zero is a challenging task. It requires a strategy and a way to measure progress. Once a timeline is set, a company will often want to purchase Renewable Energy Certificates (RECs), Emission-Free Energy Certificates (EFECs), or use energy from an off-site renewable source to offset their carbon emissions. Then they must decide which platform to use to track their progress.
Our advisors can assist in creating customized plans that combine various methods, and we can also help you choose the right platform for tracking!