Executive Briefings

Wondering Where to Start in Managing Your Company's Supply Chain Emissions?

Today, most major companies publicly report their emissions to CDP, an international corporate emissions platform. As sustainability managers know, corporate emissions come from a variety of sources, which are grouped into "scopes."

Scope 1 = the emissions from owned or operated assets (for example, the fumes from the tailpipes of a company's fleet of vehicles); Scope 2 = the emissions from purchased energy; and Scope 3 = the emissions from everything else (suppliers, distributors, product use, etc.)

Needless to say, measuring Scope 3 emissions is a big undertaking. But it matters: for many businesses, Scope 3 emissions account for more than 70 percent of their carbon footprint.

Measuring and managing these emissions can motivate a company to do business with greener suppliers, improve the energy efficiency of its products and rethink its distribution network - measures that significantly reduce the overall impact on the climate.

Measuring value chain emissions also can earn companies a gold star with investors and stakeholders. CDP scores companies based on climate change-related information collected through its global environmental disclosure system. These scores then are shared with CDP’s large investor network representing more than $100tr in assets. Companies earn points toward this score by disclosing emissions from Scope 3 categories.

If your company does not yet account for Scope 3 emissions, you may wonder where to start.

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Scope 1 = the emissions from owned or operated assets (for example, the fumes from the tailpipes of a company's fleet of vehicles); Scope 2 = the emissions from purchased energy; and Scope 3 = the emissions from everything else (suppliers, distributors, product use, etc.)

Needless to say, measuring Scope 3 emissions is a big undertaking. But it matters: for many businesses, Scope 3 emissions account for more than 70 percent of their carbon footprint.

Measuring and managing these emissions can motivate a company to do business with greener suppliers, improve the energy efficiency of its products and rethink its distribution network - measures that significantly reduce the overall impact on the climate.

Measuring value chain emissions also can earn companies a gold star with investors and stakeholders. CDP scores companies based on climate change-related information collected through its global environmental disclosure system. These scores then are shared with CDP’s large investor network representing more than $100tr in assets. Companies earn points toward this score by disclosing emissions from Scope 3 categories.

If your company does not yet account for Scope 3 emissions, you may wonder where to start.

Read Full Article