Is your Scope 3 emissions inventory ready to meet investor demands?

Scope 3 emissions

Blog by Purvish Shah, Lavanya Pawar
Published on June 9, 2023

In an era defined by environmental consciousness and the urgent need to address climate change, the significance of companies disclosing scope 3 emissions data cannot be overstated. Transparency, accountability, and the drive for sustainability have made it imperative for organizations to measure and disclose their environmental impact. In this blog post, we delve into the reasons why sharing scope 3 data is crucial and how companies can prepare for the coming wave of carbon transparency.

1. Setup data streams

Establish a robust data collection process to gather accurate and comprehensive Scope 3 emissions data from relevant sources within the company’s value chain. Previous methodologies of industry-average and spend-based carbon accounting are gradually becoming unacceptable, and customers are demanding accurate data.

2.Follow Consistent Methodology for Scope 3 Emissions

Develop a standardised methodology for calculating emissions that aligns with recognised industry standards like the GHG Protocol. Now, this is more important than ever. For more product-level calculations, standards such as TfS PCF Guidelines for calculations and PACT guidelines for data sharing are seeing fast adoption.

3. Ensure data quality assurance

Implement data quality assurance measures to validate the accuracy and reliability of collected Scope 3 emissions data, including regular audits and checks. By using digital technologies such as Carboledger, companies can maintain an audit trail of data and make credible claims.

4. Set up tracking systems

Set up a reliable tracking and reporting system to monitor and record Scope 3 emissions over time, allowing for trend analysis and goal-setting. A comprehensive dashboard aggregating data across all the material categories can help make strategic decisions and align teams.

5. Showcase transparency in scope 3 emissions

Commit to transparency by disclosing the methodology, data sources, and assumptions used in calculating the emissions, ensuring stakeholders can understand and verify the reported figures. Companies are increasingly embracing granular data by disclosing product or service-level footprints to customers.

6. Periodically assess risks

Conduct a periodic assessment of the risks and opportunities associated with emissions, considering potential regulatory changes, market trends, and stakeholder expectations. A quarterly review with sustainability teams and the board can prove to be strategic for business growth.

7. Set clear and ambitious targets

Set ambitious and measurable targets for Scope 3 emissions reduction, aligned with the company’s overall sustainability goals, and communicate these targets to customers and stakeholders.

8. Build an inclusive supplier engagement strategy

Invite suppliers, customers, and other relevant stakeholders to be part of the emissions reduction journey, fostering collaboration and sharing best practices to collectively address Scope 3 emissions. Helping value chain partners with the right knowledge and access to digital tools can catalyze the transition towards net zero.

9. External verification and certification for Scope 3 emissions

Engage a third-party verification body to independently assess the accuracy and credibility of the company’s Scope 3 inventory, providing added assurance to customers and stakeholders. Product-level emissions can also be verified externally to enhance customer relationships.

10. Improve continuously

Establish a framework for continuous improvement by regularly reviewing and updating the emissions inventory, methodologies, and data collection processes. This helps maintain accuracy, relevance, and alignment with evolving standards and requirements.

Learn how Carboledger helps you in your Scope 3 journey

At Carboledger, our mission is to help companies decarbonize their supply chain with supplier-specific data that is globally compliant. Our secure network of enterprises enables seamless sharing and access to audit-grade product carbon footprint data in real time. Enterprises can manage data requests from multiple customers on a single platform while maintaining complete ownership over the information.

Every piece of data added to the Carboledger network is standardized, verified, and rated by our expert team. Our dashboards can be your single source of-truth. You can track the progress of all ongoing PCF calculations in your organization, assign team members specific tasks, and keep an eye out on the turnaround time for a PCF request from a customer.

Visualize your carbon intensity. Share the data with minimal delay. Enhance your customer relationships

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