Scope 3 Emissions Reporting Landscape ?? Companies today face increasing pressure to measure and report emissions throughout their supply chains. This expectation is driven by a range of stakeholders, from consumers and civil society to investors and regulators. The rationale is clear: heightened consumer awareness, demand for transparency, and evolving legislation such as the EU Corporate Sustainability Reporting Directive, alongside commitments to the Science-Based Targets initiative, are all pivotal factors. Scope 3 emissions reporting goes beyond direct and energy-purchased emissions (Scope 1 and 2) to include all indirect emissions within a company's value chain. This not only covers emissions from purchased goods and services but also extends to downstream and upstream activities, including employee commuting and investments. In many sectors, these Scope 3 emissions constitute the majority of a firm's carbon footprint. While Scope 3 reporting has historically been voluntary — a strategic tool for competitive advantage, investor attraction, and environmental commitment — a shift is on the horizon. Major global developments are moving towards making Scope 3 reporting mandatory, with significant implications for businesses worldwide. As we advance, companies must prepare to align with these changes, ensuring they meet the new standards of sustainability reporting and contribute to a more transparent and accountable corporate landscape. Please note that the lists provided in the image are non-exhaustive and do not reflect all industry-specific initiatives related to Scope 3 emissions reporting. They serve as a general guide to some of the key frameworks and directives currently shaping corporate reporting practices. Source: Emissions Measurement in Supply Chains: Business Realities and Challenges 5 #sustainability #sustainable #scope3 #emissions #reporting #sustainabilityreporting #esg #governance
In these days, there is a growing call by investors, environmentalist and other stakeholders for disclosure of non financial information in corporate reporting on issues such as the impact of the business entity's operations on the environment and the measures the entity has taken to reduce the negative impact its activities are having on the environment. In the past, shareholders were more concerned with the entity's profitability and the appreciation of the entity' s share price without caring how it is affecting the atmosphere. At the moment, there is a paradigm shift and there is greater demand for accountability on ESG aspects. Entities which are considered to be affecting the environment and are not taking remedial action to reduce the impact might end up loosing customers who are conscience to the environmental issues. In other jurisdiction, there are activist who are at the extreme ends who can conduct vigorous bargains encouraging consumers to boycott products from companies which are causing land degradation, water or air pollution. Sustainability reporting requirements are going to lead to a significant change in the way entities conduct their operations and it is going to have an influence on investing decisions.
Per Vallbo, Anja Krilov S?rensen Heida Anita Hallsdottir, Nicklas Darsman ! It’s in alignment with our convo/goals/initiatives! Going with our mantra here: ”We don’t have to reinvent the wheel” #sustainability #emissions #reporting #esg #governance #alfamobility
LinkedIn Top Voice | Sustainability Advocate
1 年Alejandra R.