What are Scope 3 Emissions?

Scope 3 Emissions are emissions that occur in a company’s value chain but which are not the result of direct actions by the reporting organization. In other words, all emissions not included in Scope 1 (all direct emissions from the activities of a company or under its control) and Scope 2 (indirect emissions from electricity purchased and used by a company), are included in Scope 3. 

What emissions are included in Scope 3?

Scope 3 emissions are composed by:

  • Purchased goods and services
  • Capital goods
  • Fuel- and energy-related activities not covered by Scope 1 or 2
  • Upstream transportation and distribution
  • Waste generated in operations
  • Business travel
  • Work from home
  • Employee commuting
  • Upstream leased assets
  • Downstream leased assets
  • Downstream transportation and distribution
  • Processing of sold products
  • Use of sold products
  • End-of-life treatment of sold products
  • Franchises
  • Investments

As a result, Scope 3 typically represents the greater part of a company’s total emissions. However, companies are not required to quantify Scope 3 emissions when completing a Streamlined Energy and Carbon Report.  Even so, there is growing pressure on companies from potential investors, shareholders, clients, partners, and even staff, to fully understand their Carbon Footprint including Scope 3, and how this works throughout their value chain.   Understanding your full Carbon Footprint will allow you to make informed decisions for the future, reduce your impact on the planet and minimise the commercial risks to your company created through a lack of transparency or ignorance of your Carbon burden. Although Scope 3 emissions could well represent the majority of your GHG emissions, reducing them is possible once you understand their source. Please note that your clients are probably already looking at their emissions and will be looking for sustainable partners and suppliers.

Why should a company measure its Scope 3 emissions?

There are multiple reasons why your company should consider calculating Scope 3 emissions. By doing it, you can:

  • Reduce your costs by identifying energy efficiency opportunities in the supply chain. 
  • Improve your brand image and reputation on environmental and sustainability issues.
  • Demonstrate a clear commitment to managing climate change issues to investors and tendering clients.
  • Attract the best young talent who now tend to look at your web pages for your stance on sustainability first.
  • Optimise your own suppliers in terms of sustainability performance
  • Improve the energy efficiency of your products/services.
  • Reduce your costs by identifying energy efficiency opportunities in business travel and employee commuting.
  • Increase your company’s resilience to climate change. 
  • Find new ways to operate and function. 

And of course,

  • Play your part in managing the worst crisis to ever threaten human existence.

How can Enistic help me understand and calculate my company’s Scope 3 emissions?

At Enistic we have developed a managed and effective seven-step process to Net Zero which allows you to, at your own pace, steer your company towards Carbon Neutrality and beyond. This combines PLATO, our cloud-based emissions calculator, 11 years of experience in reducing energy and GHG emissions, and a flexible approach to clients’ needs. 

1. Outline clear objectives and a timeline. 

We will ask you what your goals are and we will help you to plan SMART objectives. It is important that those goals are aligned with your company’s mission, priorities, image, and vision.

2. Measure and manage your emissions data. 

We will ask you to provide us with all the data we need to calculate and analyse your energy consumption and resultant Carbon Footprint. Once we have this we will work with you to highlight areas where we can make immediate improvements. 

3. Make plans for short-term, mid-term, and long-term impacts. 

Enistic ensures Carbon Footprint reduction plans are as time and cost-efficient as possible to help you establish the best strategy for your company at a pace that suits you. We will work with you to set short, mid, and long-term objectives towards Carbon Footprint reduction and show you where you can achieve future savings and optimise processes.

4. Always work to the best-practice standard. 

Enistic has assisted hundreds of companies to reduce their energy use and Carbon Footprint. Founded in 2002, we are proud of our consistently high client retention rates and the standard we set ourselves. Enistic’s aM&T solution and systems are Carbon Trust Approved. We are a Carbon Trust Accredited Supplier and a member of ESTA.

5. Establish carbon reductions you can manage prior to carbon offsetting. 

Operating from the “low hanging fruit” model  We will assist you to find simple energy-saving projects, capital-intensive energy-saving projects, and green energy adoption first. These projects and changes will be based on our thorough analysis of your energy consumption and carbon emissions. Then we can assist you over time to eliminate further emissions until you are ready to consider offsetting and insetting options. 

6. Ensure your offset projects meet detailed scrutiny. 

We know that some companies that offer offsetting projects, take your money but do not actually see these projects to completion. We will ensure that all the Carbon offsetting projects we suggest fit your preferred selection criteria, are the best for your company, and meet Gold Standard certification.

7. Full and transparent reporting.

We will create a report with our analysis of your data and we will present to you your Carbon Neutrality plan to shape and adjust as you choose. We value honesty and transparency. We will tell you how much it will cost, what work will be involved,  and, where appropriate, how much you can save. We help you to achieve your goals knowing that this is your project.

Can I manage and calculate my Scope 3 Emissions on my own?

Yes, you can. Enistic has developed PLATO, a cloud-based Carbon Management Software for professionals. It allows you to display and analyse Scope 3 emissions and create SECR reports and Carbon Footprint Reports. Moreover, it gives you details of your Carbon Footprint, analyse and make informed decisions for the future.

Book a free consultation

Contact one of our lead assessors today and book a free consultation to see how Enistic can help you understand your Scope 3 emissions. We will make the processing time and cost-effective. ensuring you move forward, informed, empowered, and confident that you have control.