Reducing carbon emissions is a business imperative ?

Indeed, the issue of carbon footprints has gained significant attention in recent years, with major companies increasingly recognizing the importance of sustainability and environmental responsibility. Apple, for example, has committed to making its supply chain carbon-neutral by 2030. Nine other huge companies (inc. Starbucks, Microsoft, Unilever, Nike) are founders of Transform to Net Zero, with the mission to accelerate the transition to a net-zero carbon economy.

Indeed, carbon emissions account for a substantial 81% of total greenhouse gas (GHG) emissions, with businesses bearing significant responsibility. The remaining GHG emissions consist of methane (10%), nitrous oxide (7%), and fluorinated gases (3%). It is imperative for businesses to monitor and report their CO2 emissions as a crucial initial measure in curtailing them. This involves categorizing their carbon footprint into three scopes:

While CO2 emissions scopes might seem confusing at first, they actually help you create a GHG (Green House Gas) inventory by identifying your total emissions or how much CO2e you emit based on everything it takes for your business to operate.

WHAT DO THE DIFFERENT EMISSIONS SCOPE MEAN?

The Green House Gas Protocol divides emissions into 3 major scopes as follows -

Scope 1 - Emissions directly from sources owned or controlled by a company. Scope 1 also includes accidental or fugitive emissions like chemical and refrigerant leaks and spills (Remember, a good shorthand to remember scope 1 is what you “burn.”)

Scope 2 - Indirect GHG emissions from purchased electricity, steam, heat, and cooling in buildings and production processes. Think of these as indirect emissions you create by “keeping the lights ON.” (Remember, a good shorthand to remember scope 2 is what you “buy.”)

Scope 3 – Scope 3 emission includes emissions from company activities such as purchased goods and services, business travel, employee commuting, product transportation and distribution, waste disposal, and the use of sold products.

Scope 3 emissions can be the most challenging to measure and manage because they extend beyond the company's direct control and often involve complex supply chains. (Remember, a good shorthand to remember scope 3 value chain emissions is everything “beyond” what you burn and buy.)

WHY MEASURE SCOPE EMISSIONS?

Overall, measuring scope emissions provides businesses with valuable information to make informed decisions, drive sustainability initiatives, and demonstrate their commitment to environmental responsibility. It serves as a fundamental step in managing and reducing the environmental impact of business operations.

SCOPE 3 REDUCTION STRATEGY -

Scope 3 emissions are often the largest and most challenging to measure and manage because they extend beyond a company's direct control. Below are the few steps to achieve comprehensive and meaningful reductions in greenhouse gas emissions via Scope 3 -

• Employee engagement: Encourage and support employees to adopt sustainable commuting options, reduce business travel, and minimize waste generation.
• Supply chain optimization: Work with suppliers to improve efficiency, reduce emissions, and adopt sustainable practices throughout the supply chain.
• Transportation and logistics: Optimize transportation routes, modes of transportation, and vehicle fleets to minimize emissions associated with product distribution and delivery.
• Sustainable procurement: Source materials and products from suppliers with lower carbon footprints and environmentally friendly practices.