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Solving Scope 3 Emissions with Corporate Policies

July 5, 2024

Scope 3 emissions make up around 75% of a company’s total emissions, making their reduction vital in the fight against climate change. Gold Standard’s latest blog explores how companies can address these emissions responsibly.

🔍 Why Scope 3 is Challenging:
·       Traceability: Hard to identify and manage emissions across diverse sources.
·       Accessibility: Difficulty in collecting complete emissions data.
·       Scale: Justifying large abatement programs for small suppliers.
·       Complex Value Chains: Multiple layers of suppliers complicate coordination.
·       Influence: Emissions from end-users or third-party logistics are tough to control.

📊 Categories of Climate Action:
1.      Abatement of Physical Emissions: Proven interventions within the value chain.
2.      Abatement Outside the Value Chain: Funding external climate initiatives.
3.      Abatement of Associated Emissions: Future-oriented actions not yet provable.

💡 Practical Examples:
·       Agriculture: Buy sustainable commodities, invest in farmer programs, support landscape restoration.
·       Aviation: Purchase sustainable fuel certificates, fund R&D for future solutions.

📈 Meeting the Challenge:
·       Identify and accept 100% responsibility: Thoroughly review value chains.
·       Assess pathways: Consider new solutions and business practice changes.
·       Report transparently: Clearly distinguish between types of actions.
·       Make genuine changes: Decarbonize value chains and change business models.
·       Focus on impact: Prioritize high-impact solutions over lowest-cost options.

🔧 What Needs to Change:
·       Clearer standards: Define inventory scope and responsibility.
·       Increased responsibility: Move towards full accountability.
·       Effective mechanisms: Ensure real value chain changes.
·       Credibility: Avoid mixing value chain and beyond value chain actions.

🌿 Future Guidance:
·       Standard setters will soon provide draft guidance on Scope 3 targets.
·       Companies can already act to reduce Scope 3 emissions and contribute to global Net Zero.

Scope 3 reductions are tough, but with transparent reporting, genuine actions, and a commitment to continuous improvement, companies can lead the way in sustainability. For more information, click here!

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🚨 New Partnership Announcement!
The Greenhouse Gas Protocol (GHG Protocol) and the IFRS Foundation have signed an MOU to enhance alignment and interoperability in GHG emissions accounting.
https://ghgprotocol.org/blog/release-ghg-protocol-launches-official-partnership-ifrs-foundation?apcid=0065832e8941868dfb29b000

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