Understanding Corporate Carbon Footprints: Part 3

A Deep Dive into Scope 1, 2, and 3 Emissions

June 30, 2024

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Article 3: Exploring Scope 3 Emissions: The Full Supply Chain Impact

Introduction: After addressing direct and energy-related emissions, companies face their greatest challenge: Scope 3 emissions. These are the most complex and far-reaching, encompassing the entire value chain of a company. In this final part of our series, we explore what Scope 3 emissions are, why they are so challenging to manage, and how leading companies are tackling them.

What Are Scope 3 Emissions?

Scope 3 emissions include all indirect emissions that occur in the value chain of the reporting company, both upstream and downstream. This includes emissions from purchased goods and services, capital goods, waste generated in operations, business travel, employee commuting, and the use and disposal of sold products. Given their broad scope, Scope 3 emissions often account for the largest share of a company’s carbon footprint.

The Challenge of Scope 3:

Tracking and reducing Scope 3 emissions is notoriously difficult because it requires collaboration across the entire supply chain. Companies must engage suppliers, customers, and even end-users to gather data and implement reduction strategies. However, despite these challenges, addressing Scope 3 emissions is essential for any company committed to truly minimizing its environmental impact.

Case Study: Walmart Project Gigaton (View project)

Walmart launched Project Gigaton in 2017, aiming to avoid one billion metric tons (a gigaton) of GHG emissions from its global value chain by 2030. The project involves working closely with suppliers to reduce emissions across various categories, including energy use, waste, and product design. By 2022, Walmart reported that its suppliers had collectively reduced emissions by more than 500 million metric tons, highlighting the power of collaborative action in tackling Scope 3 emissions.

Approaches to Managing Scope 3 Emissions:

Supplier Engagement:
- Companies can work closely with suppliers to encourage the adoption of sustainable practices, such as using renewable energy or improving energy efficiency.
Setting Science-Based Targets:
- Science-based targets for Scope 3 emissions can help companies align their reduction efforts with the broader goal of limiting global warming to 1.5°C.
Leveraging Technology:
- Tools like life cycle assessment (LCA) software and supply chain emissions calculators can help companies accurately measure and manage Scope 3 emissions.

Scope 3 emissions are the most challenging but also the most critical to address for comprehensive carbon management. Companies like Walmart and Google are setting the bar high by tackling emissions throughout their value chains. By taking a proactive approach to Scope 3, businesses can not only reduce their environmental impact but also build more resilient and sustainable supply chains.

Final Thoughts:

This blog series offers a detailed look at the three scopes of GHG emissions, providing insights into how companies can measure, manage, and reduce their carbon footprints. Whether through direct emissions reductions (Scope 1), shifting to renewable energy (Scope 2), or engaging the entire value chain (Scope 3), each step is crucial in the fight against climate change. As businesses continue to innovate and share best practices, the journey to a low-carbon future becomes more achievable for all.

A Deep Dive into Scope 1, 2, and 3 Emissions

Share on

Article 3: Exploring Scope 3 Emissions: The Full Supply Chain Impact

What Are Scope 3 Emissions?

The Challenge of Scope 3:

Case Study: Walmart Project Gigaton (View project)

Approaches to Managing Scope 3 Emissions:

Final Thoughts:

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