SUSTAINABILITY
Just a few years back , talk of scope emissions would likely have elicited a quizzical glance ; not many people knew what they were , let alone why they were so important . But that could not be more different in today ’ s world , where investors , stakeholders , suppliers , and customers are beginning to demand that the organisations to whom they are connected are fulfilling their obligations on scope emissions .
Before we go any further , perhaps a quick recap of what Scope emissions are might be helpful .
Greenhouse gas emissions are categorised into three groups , or ' Scopes '. Scopes 1 and 2 are emissions that are owned or controlled by a company .
As such , Scope 1 covers emissions from burning fuel in a fleet of vehicles , whereas Scope 2 are emissions a company causes indirectly , when the energy it purchases and uses is produced . Energy for an electric fleet of vehicles , for example .
But it is Scope 3 emissions that hold the key to making serious headway on reaching global net-zero targets by 2050 . Scope 3 are emissions that are not produced by the company itself or a result of activities controlled by them , but emissions they are indirectly responsible for up and down its value chain . This includes the emissions of partner companies involved at any stage of production or processes .
For many organisations , Scope 3 comprises up to 80 % of their Scope emissions ; for large multinationals , in particular , where supply contains tens of thousands of vendors spread across the globe – many of which might be in developing countries and lack the technology or wherewithal to cut emissions without help .
76 April 2023