In order to measure and reduce scope 3 emissions, companies must first have a road map in place. This road map would include the following steps.
Steps to tackle scope 3 emissions
Let's break down the diagram below. Notice the 3 phases, commitment, data & analytics, and finally, making an impact.
Sustainability Ownership: Appointing a person or team within the company to take ownership of the project and ensure that its goals are achieved.
Baseline Calculation: Determining the current level of the company's emissions. This can be done by analyzing all spending data to understand what the company is purchasing and from whom. The process can be time-consuming, but external partners are available to assist in this step. This information can be combined with data from external databases that provide information on emissions from specific products or services.
Hotspot Identification: Identifying the suppliers or categories that contribute the most to the company's emissions.
Precise Supplier Emissions Collection: Collecting accurate emissions data from suppliers.
Reduction Initiatives: Implementing programs and strategies aimed at reducing emissions.
Scope 3 emissions: simply explained
The first step to calculate the baseline is to classify all spend data to understand what the company is buying and from whom. This can be a big task, but there are partners who can help with it.
This data can then be combined with external databases that have information on the emissions from certain products or services.
Once the baseline is calculated, companies can identify hotspots and start collecting more precise supplier emissions data. This data can then be used to implement reduction initiatives and track progress.
What to look for in a software partner
The best way to measure and manage scope 3 emissions is through software solutions.
There are several providers that offer software solutions specifically designed for this purpose. These software solutions can help companies track emissions, identify hotspots, and implement reduction initiatives.
The key components of the best software providers are:
Automated data collection
The software should automatically collect data from various sources and allow companies to track emissions over time.
The software should provide tools for companies to engage with suppliers and help them reduce emissions.
Reporting and transparency
The software should provide reporting capabilities and transparency, allowing companies to communicate their progress with stakeholders.
Integration with existing systems
The software should be able to integrate with existing systems, making it easy for companies to implement and use.
In conclusion, measuring and reducing scope 3 emissions is a difficult but important task. Companies must have a roadmap in place and start collecting data in order to make a difference.
The best way to do this is through software solutions that provide automation, supplier engagement, reporting, and integration capabilities.
So, if your company has made a commitment to become net zero by 2030, don’t panic.
There are solutions out there that can help you achieve your goals. Whatever method you choose, just start, because everything is not lost yet.
Alex is Sievo's VP of Value Enablement. He leads customer value creation with a focus on cross-functional collaboration, challenging the status quo, and growth. Alex has his backround in strategic sourcing and procurement data management.
Sustainable Procurement Playbook
Turn your sustainability goals into an action plan with this playbook. Walk the talk of sustainable procurement.