SCOPE 3 REDUCTIONS KEY FOR CREDIBLE
NET ZERO STRATEGIES
A new swell of Net Zero commitments has, unsurprisingly, been swiftly followed by questions around greenwashing. These are based on three key criticisms:
- Lack of details on the plan to get to long-term targets
- Lack of near-term actions and accountability
- Lack of value chain commitment and/or misuse of market mechanisms
In some cases, greenwashing claims are merited. In others, companies may lack the data, tools, or expertise to create best practice strategies with detailed plans to achieve them. The limiting factor for many companies underpinning all three is the complex challenge of Scope 3, or value chain emissions.
Value chain emissions are often the largest source of corporate carbon footprints, yet to date have been the lowest area of focus for most companies because of these common barriers:
- Limited access to supplier emissions data
- Lack of guidance on how to account and report the benefit of reductions from investments in dynamic supply chains
- Minimal incentives and recognition for investing in meaningful change beyond direct operations
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