Conducting a Scope 1-3 Emissions Assessment

Introduction

Assessing and managing greenhouse gas (GHG) emissions across Scope 1, 2, and 3 is vital for companies committed to sustainability and reducing their environmental footprint.

Why Conduct a Scope 1-3 Emissions Assessment?

• Regulatory Compliance: Ensure compliance with local and international environmental regulations.
• Operational Efficiency: Identify opportunities to improve efficiency and reduce costs by minimizing energy use and waste.
• Stakeholder Trust: Enhance transparency and build trust with stakeholders, including customers, investors, and regulators.
• Risk Management: Mitigate risks associated with climate change and regulatory pressures.
• Competitive Advantage: Position your company as a leader in sustainability, attracting socially responsible investors and customers.

Understanding Scope 1, 2, and 3 Emissions

Scope 1: Direct Emissions

These are emissions from sources owned or controlled by your company, such as fuel combustion in company-owned vehicles and on-site manufacturing processes.

Scope 2: Indirect Emissions from Energy

These are emissions from the generation of purchased electricity, steam, heating, and cooling consumed by your company.

Scope 3: Other Indirect Emissions

These include all other indirect emissions that occur in your value chain, both upstream and downstream. Scope 3 emissions cover 15 categories, including purchased goods and services, business travel, and waste disposal.

Steps to Conduct a Scope 1-3 Emissions Assessment

• Identify Emission Sources: Map out all potential sources of emissions across Scope 1, 2, and 3. Consider all relevant activities, including manufacturing, transportation, and product lifecycle.
• Set Clear Boundaries: Determine which parts of your value chain will be included in the assessment. This may involve selecting specific categories of Scope 3 emissions to focus on initially.

• Internal Data Collection: Gather data on fuel use, energy consumption, and other direct emissions sources within your organization.
• Supplier and Partner Data: Request necessary data from suppliers and partners, including emission factors and activity data (e.g., materials purchased, transportation distances).
• Tools and Templates: Use standardized templates and tools to simplify data collection and ensure consistency.

• Use Accurate Methods: Apply recognized methodologies such as the GHG Protocol to calculate emissions. Utilize specialized software tools for precision.
• Emission Factors: Use appropriate emission factors to convert activity data into GHG emissions. Ensure factors are up-to-date and relevant to your industry.

• Data Analysis: Analyze the collected data to identify key emission sources and trends. Focus on areas with the highest emissions for targeted reduction efforts.
• Comprehensive Reporting: Prepare a detailed emissions report following frameworks like the GHG Protocol or CDP. Include Scope 1, 2, and 3 emissions data and highlight reduction strategies and progress.

• Set Reduction Targets: Based on your assessment, set ambitious but achievable emission reduction targets.
• Implement Initiatives: Develop and implement initiatives to reduce emissions, such as energy efficiency improvements, renewable energy adoption, and supply chain optimization.
• Monitor Progress: Continuously monitor progress towards your targets, adjusting strategies as needed to ensure success.