The Scope 3 challenge

Four key strategy considerations

CARBON REDUCTION

Scope 1 and Scope 2 emissions are under an organisation’s direct control. Scope 3 emissions, however, are more complex to capture. Here, Steve Wallbanks outlines a plan for addressing them

Scope 3 emissions are indirect or value chain emissions – created by others in support of an organisation’s activities. They largely stem from supply chain partners, but include emissions created by colleagues commuting to work.

Work with supply partners

To control Scope 3 emissions, you’ll need to decide which of the 15 Scope 3 categories you want to measure and set the organisation clear targets for each. You may want to address all of these or simply a subset. The UK government, for example, asks large suppliers to measure five of the categories when setting net zero targets. Until you understand the scale of your emissions you can do little to set targets and measure progress. Organisations will be unable to measure Scope 3 emissions without the help of their suppliers.

How you approach this will depend on the type and source of your Scope 3 emissions. However, most will want to focus on a three-step process:

1. Focus on the largest

suppliers first: Make sure your suppliers can measure and report their emissions and be crystal clear about reduction or offset targets. Agree to targets, then report regularly on the progress.

2. Build carbon emission assessments into the procurement process:

Include carbon as a key determinant of supplier selection, using a twin-track approach of selecting lowcarbon suppliers and gaining clear commitments from new suppliers on the measurement and reduction of carbon emissions over time.

3. Address and support the rest of your supply

chain: Addressing Scope 3 with smaller suppliers can be a challenge. Although the landscape is changing rapidly, few SMEs will have prioritised carbon reduction in the same way that larger companies have.

In addition to setting expectations, some organisations will need to actively support their SME supplier base in measuring and reducing emissions. This might mean providing them with access to measurement tools to begin. Furthermore, in the likely event that offsetting is required, you might want to consider providing them access to any offsetting schemes you have set up for yourself.

A supplier’s perspective

While driving down your own Scope 3 emissions, don’t forget your clients will want you to support them to reduce theirs and they will all be adopting similar measures for their own carbon reduction programmes. The best suppliers will lead on Scope 3, offering support to their clients.

1. Measurement: Be proactive in adopting systems and processes to measure your own emissions that will, in turn, create Scope 3 emissions for your clients. 2. Reduction: Work directly with clients to put plans in place to reduce these emissions. Progress against these plans should regularly be measured and challenges addressed collaboratively. 3. Offset: Any offset schemes should be targeted in areas that matter to you and your clients, driving the greatest social value and impact. An example that we’ve adopted at Atalian Servest is working with our coffee producers to not only drive our own carbon emission reductions, but also improve their quality of life and address other sustainability issues. 4. Beyond Scope 3: The primary focus should be on reducing your emissions that contribute to your clients’ Scope 3. But take this a step further to help them reduce their own direct emissions. Atalian Servest’s CarbonEyes initiative helps our clients spot and report carbon wastage on their own premises, be it a dripping tap, lights left on, or waste not being correctly recycled. There are many ways to work with your suppliers and customers to reduce emissions throughout the value chain.

STEVE Working together WALLBANKS is critical to drive is chief real and sustainable operating officer of hard reductions in direct services at and indirect carbon Atalian Servest emissions.