Understanding and effectively managing Scope 3 Greenhouse Gas (GHG) emissions should be a priority for organizations with sustainability departments. As part of an organization’s risk management strategy, understanding your organization’s Scope 3 GHG emissions will allow the company to identify and mitigate risks associated with climate change. In this blog post, we’ll discuss what Scope 3 GHG emissions are, why they matter, and how to assess them.
What is Scope 3?
Scope 3 GHG emissions refer to any indirect emissions that come from sources owned or controlled by the organization but which occur outside of the organization’s own operations. This could include things like business travel, employee commuting, use of products sold by the company, waste disposal, and more. In other words, it covers anything that’s not directly related to the organization’s own operations but which still has an impact on its carbon footprint.
Why Do They Matter?
Organizations need to understand their Scope 3 GHG emissions in order to accurately measure their total carbon footprint and identify potential areas for improvement. Additionally, understanding your organization’s Scope 3 emissions can help you better understand where you may have exposure to risks associated with climate change. For example, if your organization has significant supply chain impacts due to long distances traveled by goods being shipped in or out of your facility then you may be exposed to increased risks due to weather events caused by climate change.
How Can We Assess Them?
In order to assess your organization’s Scope 3 GHG Emissions there are a few steps that can be taken: The first is collecting data about all sources of indirect emissions associated with your business operations such as employee commuting or business travel; Second is conducting an analysis of the data collected in order to identify high-emitting activities; Third is developing strategies for mitigating those activities; And finally fourth is implementing those strategies in order to reduce overall emissions from those activities. By following these steps you will be able to accurately assess your organization’s scope three GHG emissions and develop a plan for reducing them over time.
It is important for organizations with sustainability departments to have a clear understanding of their scope three greenhouse gas (GHG) emissions in order to manage their overall risk strategy effectively. By assessing these indirect sources of emission through data collection and analysis organizations can identify areas where they may have exposure due to climate change related risks and develop strategies for mitigating those activities in order reduce overall emissions from those activities over time. By taking these steps organizations can ensure they are doing their part when it comes sustainable practices and minimizing their environmental impact moving forward.