Besides the accounting and management of operational emissions, more and more companies understand the scale and importance of greenhouse gas emissions (GHG) along the whole value chain.
Until recently, companies have focused on estimating their own operational emissions under Scope 1 and 2. But setting emission reduction targets throughout the complete value chain is increasingly becoming a new business norm to mitigate potential risks and highlight a comprehensive approach towards supply chain partners and suppliers for creating beneficial synergies. So not only direct scope 1 from owned or controlled sources, and indirect scope 2 emissions from the generation of purchased electricity, steam, heating, and cooling consumed by the reporting company, also all other indirect up- and downstream Scope 3 emissions along the value chain, which present a substantial part of a company´s GHG emissions, gain increasingly more attention from businesses.
Calculating Scope 3 Emissions serve as a basis for developing SBTs, CCFs, PCFs and establishing a Net Zero Strategy
In line with the growing importance of knowing a company´s complete corporate GHG inventory, its accurate assessment and calculation is crucial. It is the key for managing GHG-related risks and opportunities and to correctly calculate Corporate Carbon Footprints (CCFs), Product Carbon Footprints (PCFs), to set Science Based Targets (SBTs) and for developing a holistic Net-Zero strategy. Since scope 3 emissions often present a main part of a company´s carbon and product footprint, they should not be neglected. To set SBTs, a company must know where its emissions occur to be able to set effective levers and targets for reducing them. Moreover, developing and following a Net-Zero Strategy is not possible without knowing all direct and indirect emissions a company emits.
But correctly calculating Scope 3 emissions is not always an easy task. Setting system boundaries and choosing the right approach demands in-depth knowledge and valuable data. In addition, there are different methods and guidelines on how to measure them. One of the most internationally applied methods to enable GHG management is the GHG Protocol.
The GHG Protocol Scope 3 Standard makes requirements and guidance available for companies to calculate and publicly disclose a GHG emissions inventory that entails indirect emissions resulting from value chain activities (i.e., scope 3 emissions) and can be used from companies of all sizes and in all economic sectors.
How DFGE can help you
DFGE has gained experience in calculating a company´s scope 1, 2 and 3 emissions according to the GHG protocol over many years. Moreover, in a holistic approach, DFGE as a full-service provider deals with the calculation of the carbon footprint up to certification and a possible compensation through climate compensation and protection projects. DFGE is characterized by a resilient scientific process methodology, rejects flat-rate calculations, and thus counteracts green-washing.
- Greenhouse Gas Protocol (2013). Technical Guidance for Calculating Scope 3 Emissions. https://ghgprotocol.org/sites/default/files/standards/Corporate-Value-Chain-Accounting-Reporing-Standard_041613_2.pdf. Last access: 18.08.2021
- Greenhouse Gas Protocol (2021). Corporate Value Chain (Scope 3) Accounting and Reporting Standard. https://ghgprotocol.org/sites/default/files/standards/Scope3_Calculation_Guidance_0.pdf. Last access: 18.08.2021