Arbor’s Post

What are Scope 1, 2, and 3 emissions, and why are they crucial for corporate sustainability? Discover the differences between these emission types and learn the essential steps for accurate reporting.

How can better data help your value chain emissions? Your suppliers have the answer💡🌍   Today we want to share a little nuance in carbon accounting methodology to help you get better (and likely lower) #Scope3 emissions estimations 📉. It is important to stress that this is NOT a decarbonization initiative, but a step in the right direction and an improvement to the quality of your data.   Let’s jump right in 👇🤓   The most common way we see companies calculating Scope 3 emissions (or #ValueChain emissions) is by using spend data and “emissions factors” to translate money spent on goods and services into emissions. Easy, right?😖❌ The issue with this method is that it relies on outdated and less accurate industry-wide estimations.   What should you do instead? 🤝 Talk to your suppliers   Many of them will be on a similar #sustainability journey to you. Chances are, those who are taking positive actions 🌱 can give you emissions data specific to their products, improving the quality of your emissions calculations.   To illustrate our point, see the graph below. It shows what could happen if you change your Scope 3 calculation methodology from US EPA industry-wide emissions factors (based on spend) to supplier-specific emissions (using Cisco’s supplier emissions data as an example).   ✨ That’s 34% lower scope 3 emissions just for asking❗   Although this is merely an improvement on paper, using supplier-specific data highlights the progress made by #suppliers who are working to decarbonise, making it easier for you to find meaningful decarbonisation opportunities.   What are your thoughts? Leave them down below ✍ #CarbonAccounting #ClimateAction

When writing their Environmental, Social, and Governance (ESG) reports, companies must accurately determine and report their Scope 1, Scope 2, and Scope 3 emissions. These emissions categories are essential for assessing and disclosing a company's environmental impact. Scope 1 Emissions: These are direct emissions generated from sources that are owned or controlled by the company, like emissions from fossil fuel combustion in company-owned facilities and vehicles. It is important to measure and track all sources of direct emissions, whether stationary (factories) or mobile (company vehicles). It is important not to omit any sources and also to update the date regularly. Scope 2 Emissions: These are indirect emissions associated with purchased energy, such as electricity, steam, or heat. Energy suppliers should provide you with accurate data. Scope 3 Emissions: These are indirect emissions that result from a company's activities but occur in its value chain. These emissions are typically the most extensive and diverse, encompassing categories like supply chain, business travel, and product use. They are the most difficult ones to assess. There is a risk of ignoring or downplaying some, though they generally consitute the majority of a company's carbon footprint. Clearly document methodologies, data sources, and assumptions used in emissions calculations will enhance transparency and credibility. Over time, you should regularly update and refine emissions data, using best practices and standards like the Greenhouse Gas Protocol. The benefit of this report is that it allows you to establish clear emission reduction targets for all three scopes and communicate progress to your stakeholders. It sets the ground for continuous improvement and makes your company operate in a healthier and more effective manner. #esgreporting #csrd #greenhousegasemissions #efficiencymatters #scope3emissions

Carbon Footprint Series Video 2 of 2 Demonstrating how your company is reducing carbon emissions and moving to a net zero/carbon neutral target is challenging when using manual methods such as spreadsheets. Carbon footprint management software will help you track, analyze and manage your carbon emissions initiatives. Discover how easy it is to track your emissions goals: https://bit.ly/3OkrZse #esg #carbonemissions #ghg #netzero

GHG Accounting for Scope 3 Emissions Understanding and managing Scope 3 emissions is crucial for comprehensive GHG accounting. Scope 3 emissions, which are indirect emissions not owned or controlled by a company, encompass a wide array of activities both upstream and downstream of an organization’s operations. These emissions are categorized into 15 distinct areas: 🔹 Upstream: ▫ Purchased Goods & Services ▫ Capital Goods ▫ Fuel & Energy Related Activities ▫ Upstream Transportation & Distribution ▫ Waste Generated in Operations ▫ Business Travel ▫ Employee Commuting ▫ Upstream Leased Assets 🔹 Downstream: ▫ Downstream Transportation & Distribution ▫ Processing of Sold Products ▫ Use of Sold Products ▫ End-of-Life Treatment of Sold Products ▫ Downstream Leased Assets ▫ Franchises ▫ Investments Addressing these emissions requires a strategic approach to measure, manage, and mitigate the full spectrum of a company’s carbon footprint. Integrating Scope 3 emissions into sustainability practices not only enhances transparency but also drives meaningful climate action. 🌱 #Sustainability #GHGAccounting #Scope3Emissions #ClimateAction #CorporateResponsibility #CarbonFootprint

Is your company's carbon emissions tracking falling through the cracks? In this article we share 3 telltale signs that it's time to update your emissions data strategy, and 5 simple ways to improve your reporting accuracy and compliance. Read the article here: https://hubs.ly/Q027cg_J0

🌍 Understanding #emissions factors is key to accurate #carbon accounting! At Good.Lab we are dedicated to maintaining the highest standard of data quality in our #sustainability software. We constantly update our platform with the latest emissions factors, including the recent additions from the US Environmental Protection Agency (EPA). This ensures that our customers can trust their climate metrics to be precise and current. 📊 Comprehensive & Reliable GHG Inventories Our tools empower companies to develop comprehensive and reliable inventories of their GHG emissions. Calculating emissions is a nuanced multi-step process, but with our platform, it's streamlined and accurate. 🔍 Why is this important? Emissions factors are essential for converting activity data (such as expenditures, miles traveled, or electricity consumed) into carbon dioxide equivalents (CO2e). Using accurate and up-to-date factors is crucial; otherwise, your reported emissions could be misleading. By choosing Good.Lab, you’re partnering with a leader in innovative, data-based #sustainability solutions. Our platform simplifies carbon accounting, making it easier for companies to meet their sustainability goals efficiently with everything you need in one place, from tracking to reporting, you can ensure that your #CarbonFootprint calculations are spot-on. 🌱 Explore our #SustainabilitySoftware Platform and see how you can better manage your environmental impact: https://hubs.ly/Q02vGgWp0 📅 Interested in a demo? Reach out today! #SustainabilitySolved #GoodLab

🌍 Understanding the Complexities of Scope 3 Emissions Accounting 🌍 Accurately accounting for greenhouse gas (GHG) emissions is crucial for businesses aiming to reduce their carbon footprint. While Scope 1 and Scope 2 emissions are relatively straightforward, Scope 3 emissions, which encompass all indirect emissions in a company’s value chain, present unique challenges. 💡 Why is Scope 3 Accounting Complex? Data Collection: Gathering data from various suppliers and partners can be daunting. Diverse Sources: Emissions from a wide range of activities make standardization difficult. Estimation Methods: Reliance on estimation methods and industry averages introduces uncertainties. Interdependencies: The interconnected nature of value chain activities requires a holistic approach to avoid double counting or omissions. 🛠️ How to Approach Scope 3 Emissions Calculations: Identify Relevant Activities: Map out all activities within your value chain. Collect Data: Engage with suppliers and partners to gather necessary data. Use Emission Factors: Apply appropriate emission factors from reliable sources. Estimate Where Necessary: Use industry averages or estimation models for gaps. Document Assumptions: Clearly document all assumptions and methodologies for transparency. Regular Review: Periodically review and update calculations as more accurate data becomes available. #ghgemissions #emissionaccounting #ghgemissionaccouting #sustainabledevelopment #esg #Sustainability #ClimateChange #Scope3Emissions #GHGAccounting #CorporateResponsibility #CarbonFootprint #SustainableBusiness #EnvironmentalImpact #SupplyChainSustainability #GreenBusiness

Ever wondered why Scope 3 emissions matter the most? They make up over 70% of a company's carbon footprint, yet fewer than half of the companies that disclose their emissions data track and report on their Scope 3 emissions. What do the different emissions scopes mean? The Greenhouse Gas Protocol (GHG Protocol) divides emissions into three scopes: Scope 1: Direct emissions from sources a company owns or controls. Scope 2: Indirect emissions from purchased energy. Scope 3: All other indirect emissions, including those from the supply chain and product use. Each scope includes Burn, Buy, and Beyond. Scope 1 is what you burn, scope 2 is the energy you buy, and scope 3 is everything beyond that. Investor's Focus on Scope 3: Investors are now scrutinising companies' entire supply chains, including Scope 3 emissions, before investing. ESG investors, especially, seek firms committed to climate goals, driving attention to Scope 3 emissions, where the largest carbon footprint often lies. The Greenhouse Gas Protocol identifies 15 classes of Scope 3 emissions, with "purchased goods and services" and "use of sold products" deemed crucial. Measurement of GHG emissions: - Scope and plan your inventory. - Collect data and calculate your GHG emissions. - Develop a GHG Inventory Management Plan (IMP). - Set targets and track your progress. Curious to delve deeper into managing Scope 3 emissions? Let's measure and reduce our carbon footprint together. Check out the infographic below. Comment your thoughts on Scope 3 emissions, and share this post to spread awareness! #EnvironmentalAwareness #Scope3Emissions #Greenhousegases #sustainablebusiness #electricity #Climate

Imagine navigating a vast landscape without a map. In a similar way, Scope 3 emissions can be equally challenging to navigate. But you can start to chart your course by creating some initial Scope 3 estimates to act as a guiding tool, helping you establish data collection priorities and identifying carbon “hotspots” that lead you towards your strategy. Discover how initial estimates can be your guiding tool, helping your business set the stage for effective reduction strategies, realistic targets, and determining what resources you need for steady decarbonization. So, how do you start conducting your initial estimates? In our latest blog, we uncover an approach your company can take to conduct initial estimates for your Scope 3 emissions. We’ve outlined six steps to get started in conducting your estimate here 👉 https://lnkd.in/g5y6aMZK #Scope3Estimates #SustainabilityStrategies #DecarbonizationJourney #EnvironmentalImpact