Did you know that as we are still trying to fully understand the Scope 1, 2 & 3 emissions - Scope 4 becomes more and more popular.
As sustainability regulations expand, more companies are required to report their environmental impacts, making the topic of environmental sustainability increasingly relevant.
Today, many companies are still finding challenges with Scope 1, 2, and 3 emissions reporting, however, a new category - Scope 4 emissions - is gaining attention. This term, introduced by the World Resources Institute in 2013, measures the avoided emissions—those emissions saved by a company's products or services, such as energy-efficient technologies or decarbonization services. While Scope 4 is not officially recognized by the GHG Protocol, it is becoming more important for companies looking to understand their full environmental impact.
Scope 1, 2, and 3 emissions represent different categories of greenhouse gas emissions. Scope 1 emissions are direct emissions from sources owned or controlled by the company, Scope 2 relates to indirect emissions from purchased energy, and Scope 3 covers emissions from the value chain, including those from suppliers and customers. In contrast, Scope 4 is more focused on the positive environmental impact of products and services.
While there is no standardised method to calculate Scope 4, companies are experimenting with life cycle analysis (LCA) to assess the emissions reductions their products or services create. Adopting Scope 4 reporting could offer advantages, including a fuller view of a company’s environmental impact, encourage innovation for sustainability, and improve corporate reputation, though its full integration into reporting practices will likely take time.
Yes, the integration of Scope 4 into a standard reporting or a framework could take several years, but the raising interest in it shows how the world is becoming hungry for next steps and actions towards Net Zero and our collective fight against the climate change!
