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9 Business and Environmental Benefits of Measuring Scope 3 Emissions

cut co2 emissions

Whether you’re a private company or a public body, Scope 3 emissions will generally represent the largest proportion of your emissions. These emissions are considered to be those that exist outside of your direct control and organizational boundaries. Scope 3 emissions are present across the entire supply chain – from transport and logistics – to your employees’ commutes.

It’s only by assessing and considering ways to mitigate these emissions that companies can develop a truly meaningful climate change strategy.

Becoming more eco-friendly is a valid goal in itself. However measuring Scope 3 emissions can also benefit your organization in multiple ways, from improved risk management and cost reductions, to an enhanced company reputation. Addressing Scope 3 emissions proactively will also help you get ahead of the game in terms of meeting changing regulatory requirements.

In this post we’ll look at some of the many benefits of measuring Scope 3 emissions:


Measuring Scope 3 emissions can help you:

1) Pinpoint hotspots and make informed decisions

 Understanding where you stand when it comes to Scope 3 emissions allows you to pinpoint the emission hotspots across your entire value chain, so you can identify where to prioritise your reduction strategies.

This new level of understanding allows you to make informed decisions about your business from procurement and product development, to logistics, and many other areas. Armed with this knowledge your teams can decide which interventions which will deliver the most significant emission reductions.

For example, if you are an e-commerce company, you may measure your Scope 3 emissions to discover that a significant proportion of your emissions stem from product delivery and return logistics. To mitigate this you could decide to optimize your delivery routes, implement a green fleet strategy, or offer return consolidation options.

You could also switch to sustainable lightweight shipping containers – PALLITE®’s innovative logistics solutions are eco-friendly, lightweight, and customisable, reducing both shipment weights and load sizes.

These actions not only cut emissions but result in substantial cost savings due to reduced fuel consumption and improved logistics efficiency.


2) Minimize risk

Understanding your Scope 3 emissions can help to strengthen your supply chain. By identifying vulnerable areas in your supply chain (for example resource scarcity or upcoming regulatory changes) you can take steps to diversify or implement back up plans to minimize potential supply chain disruptions.


3) Align with reputable suppliers

Measuring your Scope 3 emissions gives you the insights you need to identify which of your suppliers are leaders, and which are laggards, in terms of their sustainability performance. This puts you in a better position to select suppliers with a better environmental record, and enables you to encourage responsible procurement practices.


4) Make cost reductions

Analysing your Scope 3 emissions can reveal opportunities for cost reductions. By identifying inefficiencies in your supply chain you can look at ways to optimize processes, reduce waste, and ultimately lower operational costs. By turning to more energy efficient and sustainable solutions within your supply chain, you can work towards reducing your carbon footprint.

PALLITE® Group’s range of environmentally-friendly logistics solutions can help you reduce your carbon emissions whilst helping you make significant cost-savings. From sustainable pallets and shipping crates to layer boards and protective packaging materials, PALLITE® products offer you a cost-effective solution compared to traditional alternatives.

PALLITE® products: Lightening loads

PALLITE® paper pallets are around 20kg lighter than traditional wooden pallets. This could reduce your transit packaging weights by over 80%, and significantly lower your fuel costs.

PALLITE® shipping crates can also be customised to fit individual consignment items snugly, reducing space requirements in transit. This can increase capacity in containers by up to 28.5%, meaning fewer consignments – and fewer lorries on the road, again leading to big reductions in carbon emissions.


5) Boost innovation

Identifying your Scope 3 emissions can lead to an increase in product innovation and encourage you to create and use more sustainable and energy-efficient products.


6) Create a positive workplace culture and attract top talent

Measuring Scope 3 emissions can lead to more positive engagement with employees.  Employees are more likely to feel engaged with their employers if they feel they are taking steps to reduce their environmental footprint.

The emissions resulting from business travel and employee commuting can add significantly to Scope 3 emissions. Introducing, for example, a “bike to work” scheme can not only reduce emissions – but improve employee motivation and engagement.

IBM’s Institute for Business Value (IBV) survey also reveals that employees are more likely to apply for jobs from companies they perceive to be more environmentally sustainable.


7) Gain a competitive advantage

Competitive advantage: Businesses that measure and disclose their Scope 3 emissions can gain a competitive edge and be in a better position to attract environmentally conscious consumers, investors, and partners, who value sustainability efforts.


8) Improve energy efficiency

Analysing your Scope 3 emissions usually shines a light on energy consumption too. This can lead to improvements in energy efficiency – reducing both emissions and energy costs.


9) Global market access

Some international markets and trade agreements require companies to disclose and reduce their carbon emissions. Measuring Scope 3 emissions facilitates access to these markets and trade opportunities.

Once you understand your Scope 3 emissions you are in a better position to advance your climate strategy and create genuine, quantifiable, and visible change. However, measuring Scope 3 emissions is not just about environmental responsibility; it’s a strategic imperative for businesses, and offers a wide array of benefits, from cost mitigation to competitive advantage.

PALLITE® products offer an environmentally-friendly alternative to conventional plastic or wooden packaging and shipping containers. By switching from plastic to sustainable paper products you can reduce your Scope 3 emissions, and play your part in a circular economy.


If you’re looking for sustainable logistics solutions that can also improve efficiencies and save you money, get in touch with us today. Use our quick sustainability calculator to see how our products could help you reduce your carbon footprint.

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