It is quite straightforward for organisations to measure Scope 1 and 2 greenhouse gas emissions and to identify opportunities to reduce them. However, for organisations involved in the production, sourcing and selling of physical goods, most emissions will come from Scope 3 sources. This article explains what Scope 3 emissions are, how they can be measured and how they can be reduced.
What are ‘Scope 3’ emissions?
Scope 3 emissions can be caused either ‘upstream’ or ‘downstream’ of an organisation. Upstream emissions are associated with purchased goods and services, transportation, waste generation and supplier activities. Downstream memissions are related to the use and endof- life treatment of products.
The ‘Greenhouse Gas Protocol’ breaks down Scope 3 emissions into fifteen categories (see table 1) covering all aspects of an organisation’s activities.
For furniture and joinery businesses, purchased goods and services are likely to be the most significant contributor to Scope 3 emissions. Raw materials such as timber, steel, aluminium, textiles, leather, foam, and packaging all have environmental impacts linked to their extraction, processing and transportation.
Scope 3 emissions can also arise from purchased services such as accounting, consulting, landscaping and testing.
How do you measure Scope 3 emissions?
To measure its Scope 3 emissions, an organisation will need to collect data for all relevant categories. Much of the required information will already be available, such as purchasing records, spend per supplier and transportation data. Carbon accounting software can then be used to estimate emissions associated with different activities to identify the most significant sources.
This allows any obvious emissions ‘hot spots’ to be identified, helping organisations prioritise actions that will deliver the greatest reductions. Data quality can be improved by working more closely with suppliers. For example, rather than relying on financial spend data,it may be possible to collect information on material weights, transportation distances and even supplier-specific carbon footprint data.
Although this process can take a lot of time and effort, it will provide a much more accurate understanding of environmental impacts.
What can be done to reduce Scope 3 emissions?
In order to reduce its Scope 3 emissions, it is important for an organisation to consider its entire end-to-end supply chain, as well as the full product lifecycle of its products. Some examples of areas on which to focus are provided below.
Material selection is crucial. Organisations should consider whether it is possible to select materials with a lower carbon footprint, a higher recycled content, or materials that are sourced responsibly, such as certified timber. If practical, reducing the amount of material in a product can reduce emissions and save money.
Waste reduction can also offer substantial savings. Improving cutting efficiency for textiles, leather and other materials is another opportunity to lower costs and environmental impact.
Supplier engagement is also important. Encouraging suppliers to improve energy efficiency, switch to renewable electricity or install on-site solar generation can help reduce emissions throughout the supply chain.
What else should organisations consider?
While it is important to focus on materials and production, other activities can also contribute significantly to Scope 3 emissions.
The development and approval of new products often involve the production and international shipment of multiple samples. Digital design tools, three-dimensional visualisation software and artificial intelligence can help reduce the need for physical samples while maintaining effective product development processes.
Transportation choices are also important. Air freight can generate substantially higher emissions than sea freight, meaning that improved forecasting and inventory planning can often deliver both environmental and financial benefits.
Finally, organisations should consider what happens when products reach the end of their useful life. Furniture that is durable, repairable and capable of being refurbished, remanufactured or recycled will generally have a lower overall environmental impact than products that are quickly discarded.
While reducing Scope 3 emissions may be viewed as a sustainability challenge, it can also create commercial benefits.
Contact [email protected] for further information on how to both measure and reduce your organisation’s carbon footprint.
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