Part 3: What are Scope 3 Emissions and How Do You Monitor Them in Your Organisation?
In the last two newsletters, we talked about Scope 1 and 2 emissions. In this newsletter, we will be covering Scope 3.?
By the end of this newsletter, you will have a complete idea of all three emission scopes for better focusing your organisation’s efforts on reducing carbon emissions and transitioning to a? net-zero status.?
While Scope 1 and 2 emissions are mandatory to report for certain identified organisations, Scope 3 is currently a voluntary reporting category for all organisations. The greenhouse gas emissions are not reported under the NGER Scheme but can be used under Australia’s National Greenhouse Accounts.
For all other organisations Scope 1, 2 and 3 are currently voluntary.
Scope 3 is by far the most complicated for an organisation to dissect and report accurately. It is easy to become overwhelmed by the number of uncontrolled variables or the difficulty in collecting credible data.
The journey of calculating Scope 3 emissions involves collecting accurate data from your supply chain. To do this, educating and partnering with suppliers who are committed to understanding their emissions is important.
The overarching strategy for reducing Scope 3 emissions will require the “buyer” organisation to decarbonise their supply chain through selective purchasing of greener options. These will be organisations that are themselves on the path to net zero.
Critically, be aware at some point in time your customers will select their supply partners using this process as they themselves reduce their emissions.?
Scope 3 emissions in most organisations will account for 80%+ of the total emissions footprint. It is the “elephant in the room” and although the most complex offers an organisation the biggest opportunities to reduce its overall emissions and make the biggest impact.?
What are Scope 3 emissions??
Scope 3 emissions are indirect greenhouse gas emissions other than those captured in Scope 1 and Scope 2. They result from the organisation’s operations and are generated in the company’s wider economy. Some examples include business travel and purchased goods, raw materials and services.?
Scope 3 emissions have 15 categories and are within subcategories of “upstream” and “downstream” emission-producing activities.?
Scope 3 upstream and downstream emissions?
Scope 3 upstream emission examples include business travel using methods that are not owned or controlled by their organisation.?
The eight categories in upstream Scope 3 emission include:?
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Scope 3 downstream emission examples include the processing of orders of sold products, ongoing use of sold products and the end-of-life treatment of sold products.?
The seven categories in downstream Scope 3 emissions include:?
How to Monitor Scope 3 Emissions?
Carbon Offset Advisory offers software driven tools tailored to help you collect accurate data across? Scope 3 as well as Scope 1 and Scope 2.
Carbon Offset Advisory’s Cloud-Based Software Solution?
Carbon Offset Advisory builds and implements cloud-based software solutions, enabling organisations and business groups to develop brand-centric, net-zero carbon communities that include suppliers and customers.?
The strategy of these carbon emission communities is to facilitate and build capacity for supply chain transformation to net-zero emissions, with simple-to-use software tools.?
This enables your organisation to guide and facilitate your suppliers to commence their own emission reduction journey. Converting your supply chain to net-zero carbon will help deliver on your reduction targets.
Summary of Scope 1 ,2, and 3 emissions
This reaches the end of our third newsletter instalment about scope emissions. Although this may sound like a lot of information to consume about each scope emission, the process doesn’t need to be overwhelming.?
At Carbon Offset Advisory, we assist companies like yours create a simplified and custom net-zero plan. However, don’t wait until the government forces your business to significantly report and reduce carbon emissions. A proactive, measured? approach minimises the approaching compliance risks.
Reach out via DM to discuss and let’s work together.?
If you’d like to learn more about Australia’s journey to net-zero emissions, please subscribe to this newsletter.