How to Measure & Manage Scope 3 Emissions

Understanding the carbon footprint of your organisation is vital when you’re trying to achieve any sustainability targets or aiming for net zero goals. A lot of companies start by looking at Scope 1 and Scope 2 emissions (relating to direct emissions and indirect emissions from purchased energy), but it’s Scope 3 emissions which are often the most complex, yet important, part of your business’s overall footprint. For that reason, we’re going to take a closer look at what Scope 3 emissions are, why they’re so important, and what your business can do to measure, manage and reduce them. In particular, we’ll look at how renewable energy solutions, like solar power, can help.

What Are Scope 3 Emissions?

Scope 3 emissions cover all indirect emissions that happen throughout an organisation’s value chain that aren’t covered in Scope 2. This includes emissions from downstream and upstream activities, including:

• Purchased goods and services
• Business travel
• Employee commuting
• Waste disposal
• Transportation and distribution
• Use of sold products
• End-of-life treatment of sold products
• Investments and leased assets

Scope 3 emissions go well beyond the emissions within your organisation’s direct control, as covered in Scope 1 and 2. Supplies, customers, and other third parties have a role to play which can make them more complex to manage initially. However, this also makes it more crucial to understand your company’s true role in wider carbon use.

Why Are They Important?

Scope 3 emissions represent over 70% of the average organisation’s total carbon footprint, according to the Global Compact Network UK. There is an increasing emphasis on the reality of carbon use, with increasing pressure from climate regulators, customers, investors, and other parties.

Without Scope 3, you can’t have a full picture of your company’s contribution to carbon use. Understanding these emissions helps organisations identify inefficiencies in their supply chain, meet reporting requirements, and attract more sustainability-conscious investors, partners, and clients.

How to Measure Scope 3 Emissions

Given the amount of third-party contributions, measuring Scope 3 emissions isn’t easy. However, there are some practical steps you can take to get started:

Use the GHG Protocol

You can categorise activities using the Greenhouse Gas (GHG) Protocol. This defines 15 categories of Scope 3 emissions to help you identify which ones are relevant to your business.

Analyse Your Supply Chain

When working with suppliers and service providers, requesting emissions data, where available, and using industry averages or estimation tools to begin with, can help measure your Scope 3 emissions.

Conduct an LCA

A Life Cycle Assessment (LCA) can help you understand the emissions generated at every stage of your product or service.

Use Data Management Software

These can help you track emissions and find high-impact areas to improve on, allowing for complete performance reporting.

How to Reduce Scope 3 Emissions

When you know the status of your carbon emissions, the next step is to reduce them. You can do this using some of the following strategies:

Switch to Renewable Energy

Renewable energy, such as solar PV, is typically the most helpful in reducing Scope 2 emissions. It also contributes to certain categories of Scope 3 emissions, like purchasing goods from clean energy suppliers, and how products powered by renewable energy decrease downstream energy use.

Noble Green Energy’s solar PV consultancy and installation services can help you reduce your dependency on carbon-intensive electricity at all stages.

Improve Your Logistics

Lower-emission transport methods and logistics providers committed to sustainability can optimise how your products are handled, such as with greener fleets or local providers.

Focus on Operational Efficiency

Lean manufacturing, resource management, and upgrading your equipment can help you reduce energy consumption in manufacturing and warehousing.

Request Supplier ESG Disclosures

Ask suppliers to provide environmental data so you can make more informed decisions. This can also start a ripple effect of putting a higher value on sustainable behaviour throughout the value chain.

Plan for Long-Term Impact

Actively set Scope 3 reduction targets beyond regulatory compliance, using formal assessments, like ESOS audits, to drive long-term impact.

How Noble Green Energy Can Help

We’ve helped a wide range of businesses and organisations take major steps towards their sustainability goals through tailored solar solutions, consultancy, and energy assessments. Whether you’re just starting to assess Scope 3 emissions or you’re ready to take action, our team is here to support you.

Get in touch with us today to discuss your requirements and to take the first step towards your sustainable future with Noble Green Energy.