What are scope 3 emissions – and should you measure them?
Scope 3 emissions are often called “indirect emissions”. They refer to greenhouse gas emissions associated with activities that occur outside of a company’s organizational boundaries. Scope 3 emissions, although not under a company’s direct control, nevertheless count towards a company’s overall environmental impact.
In this first of several articles on Scope 3 emissions, we’ll look at the nature of Scope 3 emissions, why it makes sense to measure them, and some ways to mitigate them.
The scope of scope 3 emissions
Scope 3 emissions provide a comprehensive measurement of all a company’s activities – information that is particularly useful to businesses in the retail and manufacturing sectors, enabling them to work towards achieving tangible sustainability goals.
Scope 3 emissions can come from the entire value chain – from a company’s suppliers to its customers. There are 15 scope 3 emissions categories as outlined in the Greenhouse Gas Protocol, including those surrounding:
- Goods and services purchased
- Transport and distribution
- Use of products sold
- End-of-life treatment of products sold
- Downstream leased assets
Are companies required to measure their Scope 3 emissions?
The calculation of Scope 1 and Scope 2 emissions is the minimum required for acceptable greenhouse gas (GHG) reporting under UK Defra guidelines. Scope 1 and Scope 2 emissions relate to emissions directly under the control of a company. These include emissions from their own fuel consumption and emissions that occur off-site, for example from electricity purchased by a business.
Under new European Union (EU) rules, companies will be required to carry out a thorough assessment of their Scope 3 emissions. Although at present the UK government does not require of mandatory assessment of scope 3 emissions, it is expected that, as in the majority of other countries, mandatory reporting of scope 3 emissions will be introduced in the coming years.
Why measure Scope 3 emissions?
For many organizations, indirect Scope 3 emissions represent approximately 70% to 90% of their total carbon footprint. As consumers become increasingly interested in the climate impact of the products they buy, retailers, in particular, are examining how to identify, not only their own emissions, but those of their entire supply chain. ‘supply.
Companies that tackle Scope 3 emissions demonstrate their commitment to addressing their environmental impact holistically. This approach not only helps mitigate climate change, but also improves a company’s reputation, fosters innovation and positions a company as a responsible actor in a carbon-constrained world.
With mandatory reporting on the horizon, it is essential that businesses start working on assessing their Scope 3 emissions now. This can provide deeper insight into the current carbon footprint and help identify decarbonization opportunities.
How can companies reduce their Scope 3 emissions?
Companies can work to reduce their Scope 3 emissions via a number of strategies:
- Optimize transport and distribution networks to reduce emissions caused by logistics. Choosing lightweight, compact packaging materials can reduce transportation-related emissions by allowing more products to be shipped in a single shipment. Optimizing transport routes and using more fuel-efficient modes of transport can also help reduce emissions.
- Switch to renewable energy sources and improve energy efficiency to reduce emissions. Using paper from responsibly managed forests can help reduce the carbon footprint associated with the production and transportation of raw materials.
- Reduce product waste and encourage sustainable product use to mitigate emissions from end-of-life product processing. Using recyclable paper products can help reduce the environmental impact of waste disposal.
- Implementation of circular economy models. This involves the use of products that are durable and easy to recycle at the end of their life. This helps minimize the need for new raw materials and reduces associated emissions.
- To mitigate Scope 3 emissions, companies can also choose to influence their suppliers to change their practices – or switch to suppliers who adhere to more environmentally friendly practices.</li >
PALLITE® products: reducing costs and carbon emissions
PALLITE® board products can help you reduce Scope 3 emissions throughout the supply chain. When it comes to freight transportation, PALLITE®’s lightweight paper pallets, shipping crates, mounting boards and protective packaging significantly lighten loads in transit, reducing your carbon footprint.
This can be illustrated using real figures: Pallite paper pallets are around 20 kg lighter than wooden pallets, reducing the weight of transit packaging by more than 80%. This results in tangible cost savings throughout the supply chain, as less fuel is required to transport goods by road, sea or air. And lighter loads mean lower Scope 3 emissions.
A tailored fit for increased space efficiency
PALLITE products can be manufactured to custom designs, so that® they fit the products exactly. This not only reduces the amount of space you need for goods in transit, but also reduces the amount of packaging you need. Less space means fewer truckloads on the road, and fewer trips means fewer emissions.
You could potentially add an additional 28.5% product discount per shipment using Pallite products
PALLITE® Group: a responsible supplier
When you use PALLITE® products, you can be sure that you are working with a responsible supplier who works hard to preserve the earth’s natural resources. We use 100% recyclable products made from paper derived from managed sources and 80% recycled.
By opting for PALLITE’s eco-friendly products, you can move away from single-use plastic packaging, wooden shipping containers,® plastic pallets and polystyrene void fill. By introducing a truly sustainable solution into the supply chain, you can play a major role in developing a circular economy.
Monitoring and reporting Scope 3 emissions is essential to understanding your company’s overall impact on the environment. Once you understand your current position, you can set goals with the goal of reducing your carbon footprint. Switching to sustainable logistics solutions will not only save you money on energy and resources, but also reduce your Scope 3 emissions.
We’d love to discuss how PALLITE® Group can help you achieve your sustainability goals, so don’t hesitate to contact us today. In the meantime, why not try our easy-to-use sustainability calculator to see the positive environmental impact you could achieve for your business by switching to PALLITE® products?
