Scope 3: The Fastest Path to Achieving Carbon Net Zero

We covered ‘What is carbon net zero?’ last week, and discussed how everybody is talking about it endlessly but nobody knows how to contribute to it. The Canadian government has started to take tangible steps towards carbon net zero, and we're seeing major magazine covers discussing it, but nobody is explaining how. How are we going to achieve carbon net zero? This question is like an announcement from a TV presenter for scope 3 because scope 3 emissions must come to the stage following this question. Let’s get started.

What is scope 3?

Let's begin by discussing how to reach carbon net zero. The first and most significant step is cutting down on your current carbon footprint. You might be wondering, "How can I do that without knowing what my carbon footprint currently is?" Once we understand what carbon net zero means and its connection to scope 3, we'll guide you through measuring your carbon footprint step by step. Returning to our starting point, the quickest and least complicated way to achieve carbon net zero is by targeting scope 3 emissions. This is because, for many organizations, scope 3 emissions make up over 80 percent of their total footprint. But why is that percentage so high?

While scope 3 takes the spotlight today, we shouldn't overlook the roles of other scopes. To provide the clearest and most scientific explanations, let's turn to Kim Caron, our CEO, for definitions.

Scope 1 emissions are direct emissions from owned or controlled sources. This includes fuel combustion on-site such as gas boilers or company-owned vehicles. Mitigation strategies here often focus on switching to renewable energy sources or improving energy efficiency.

Scope 2 emissions cover indirect emissions from the generation of purchased electricity consumed by the reporting company. Companies can reduce these emissions by opting for electricity from renewable sources, such as wind, solar, or gravity (Gravitas Energi), and by increasing the energy efficiency of their buildings and processes.

Scope 3 emissions, also known as value chain emissions, however, are the most elusive as they include all other indirect emissions that occur in a company’s value chain. This encompasses emissions related to business travel, procurement, and waste disposal. Scope 3 can often account for the majority of an organization’s carbon footprint—up to 80% or more. This makes it a critical target for those aiming to make a significant impact on their overall emissions.

Switching to paper menus? Are you sure?

I believe this brief explanation has provided you with a clearer understanding. Since scope 3 accounts for a significant portion of carbon footprint, prioritizing it and commencing the journey towards carbon net zero with scope 3 is a wise approach. Let's consider an example: Imagine you run a fancy restaurant in the downtown area. When COVID hit, you reverted to paper menus, much to everyone's delight. Now, you collaborate with a print center for these menus. However, the process involves various operations: printing using paper, ink, and electricity, covering with PVC plastics, and delivery to your door in a secure package. The delivery involves loading the menus onto trucks, which may also transport menus for other restaurants. Just by opting for paper menus, you can see how many operations are involved in this seemingly simple decision.

Now, let go of the choice you've made and the complaints from the older patrons about QR menus. Don't dwell on their frustrations with QR codes; after all, even if they had smartphones, they might not have internet access and would likely reject free Wi-Fi from the restaurant. By embracing QR code menus, you've eliminated supply chain complexities beyond your control. Imagine if you transitioned all your services from external partners to supply chains actively reducing their carbon footprint. Just by opting for QR code menus, you've streamlined operations and taken a significant step in reducing scope 3 emissions. It's a straightforward and effective approach to sustainability.

Let's consider another scenario where your goal is to reduce carbon emissions, but your approach differs slightly. Suppose you're unaware of emission scopes, and you've opted for an electric car for personal transportation. You might perceive yourself as exceptionally environmentally conscious because you've reduced your individual carbon footprint, overlooking broader business impacts. Alternatively, you may have chosen to use thicker napkins and double their usage, yet you're still lagging behind in addressing comprehensive emission reduction strategies.

Rather than fixating on minor adjustments linked to scopes 1 and 2, implementing a single alteration in your supply chain can profoundly slash your scope 3 emissions.

Why take action now?

You might be wondering, why bother? Why go through all the hassle of these considerations, decisions, and changes? Perhaps you simply prefer to stick with your paper menus and avoid dealing with those who don't have smartphones - if such individuals even exist anymore. It's tough to make a decision that seems to benefit only others, without any immediate payoff for yourself. You need motivation, something to push you, or else you'll struggle to see the value in it for yourself.

Legal mandates: The Canadian government has already begun mandating regulations. Companies operating facilities in Canada emitting 10,000 tonnes or more of carbon dioxide equivalent greenhouse gases per year are now subject to new reporting requirements under the federal Greenhouse Gas Reporting Program. Instead of waiting for stricter regulations, proactive measures and innovative solutions offer a safer approach. Whether it's because of obligation or existing practices, starting now with proper carbon emissions reporting builds confidence and reduces stress.

Reputation: Early adoption can enhance a company's reputation, improve investor confidence, and facilitate access to green financing options. More importantly, it prepares businesses to be resilient and adaptable in a future where sustainability and climate resilience are not just regulatory requirements but also critical business imperatives. (Kim Caron, 2024)

Reason 3 – Even after we're buried six feet under, the world will continue. Future generations, nations, and children will inherit the consequences of our actions. Taking steps now to reduce carbon emissions ensures a cleaner, safer world for them to inherit.

Loney, J., Gordner, T., Cuervo-Lorens, R., & Thiboutot, M. (2023, February 8). Canada enacts new reporting requirements under the Greenhouse Gas Reporting Program. McMillan LLP. https://mcmillan.ca/insights/canada-enacts-new-reporting-requirements-under-the-greenhouse-gas-reporting-program/

Caron, K. (2024, May). Carbon Neutrality in? Motion: The Executive? Mat Service Stor. Executive Mat Service. May 20, 2024, file:///C:/Users/narslan/Desktop/Ness%20Marketing/Useful%20docs/Carbon%20net-zero%20story%201%20(Updated).pdf

Neslihan Arslan