An Overview of Scope 3 Reporting
Whether you are the Managing Director, Sustainability Manager, Chief Financial Officer, or Procurement Manager, understanding corporate sustainability metrics can be challenging. After all, there is a lot to take in when it comes to making sure your company is doing its part to reduce emissions and remain compliant with regulations. One such metric is Scope 3 reporting, which measures the indirect emissions associated with an organisation’s activities. Let’s break down what exactly Scope 3 reporting is and why it’s important.
What Is Scope 3?
Scope 3 reporting measures the indirect emissions associated with an organisation’s activities that are not owned or controlled by the organisation itself. It includes both upstream (inputs) and downstream (outputs) emissions from sources like business travel, employee commuting, and purchased goods and services. These are considered “indirect” because they are outside of the company’s control but still contribute to their overall carbon footprint.
Why Does It Matter?
From 2025 all Scope3 Carbon emissions will need to be reported to be compliant with ESG legislation.
Scope 3 reporting can help organisations identify areas for improvement when it comes to their environmental impact. By collecting data on Scope 3 activities, companies can develop strategies to reduce their carbon footprint and become more sustainable over time. Additionally, having this data allows companies to make informed decisions about investments in sustainable energy sources like renewable energy or energy efficiency upgrades. This information can also be used to track progress toward sustainability goals like reducing greenhouse gas emissions or improving energy efficiency.
How Do You Measure It?
Measuring Scope 3 activities involves collecting data on all aspects of a company’s operations that involve a third-party vendor or supplier—from purchasing raw materials through end-use disposal of products or services—and calculating the associated carbon dioxide (CO2) emissions using standard emission factors or direct measurement techniques. Companies should consult with experts like TripShift in order to ensure they have accurate data collection methods in place and understand how best to interpret this data in order to inform decision-making processes related to sustainability initiatives. We empower organisations to make a material impact in reducing their carbon emissions, and easy to use tools that makes measuring and reporting their Scope 3 emissions as simple as filing a tax return.
Scope 3 reporting provides organisations with valuable insights into their operational impacts that cannot be gleaned from measuring only direct emissions sources (i.e., those owned or controlled by the organisation). By understanding these indirect sources of emissions, organisations can make informed decisions about investments in sustainable energy solutions as well as track progress toward sustainability goals such as reducing greenhouse gas emissions or improving energy efficiency over time. With accurate data collection methods in place and expert guidance on interpreting this data, companies can use scope 3 reporting as a powerful tool for achieving corporate sustainability goals now and into the future.