Scope 3 Emission Reduction Opportunities

Learn about opportunities to reduce Scope 3 Emissions

Scope 3 Emissions Reduction Opportunities

For most businesses Scope 3 emissions account for between 80-90% of their overall emissions footprint and as a result generally represent their largest opportunity for emission reduction.

You can learn more about scope 3 emissions in our detailed article here.

Common Scope 3 Emissions Reduction Opportunities

Scope 3 emissions—those that occur outside of your direct operations, like supplier activities and customer use of products—can be challenging to tackle. Building a business case for these initiatives involves showing how they align with your organization’s goals and can deliver tangible benefits. Here are some effective opportunities and ways to frame their value.

1. Supplier Engagement

Opportunity: Partnering with suppliers to enhance their sustainability efforts, focusing on areas like energy efficiency, renewable energy adoption, and emissions tracking.

Business Case Tips: Emphasize how improving supplier sustainability reduces your overall Scope 3 footprint, strengthens supply chain resilience, and meets increasing stakeholder expectations. Highlight any incentives you can provide to suppliers, like preferential contract terms, training, or access to shared resources.

2. Sustainable Procurement

Opportunity: Prioritize purchasing goods and services that have lower environmental impacts—such as products with recycled materials or those with lower embodied carbon. Remember, as per the above, you do want to get actual emissions data where possible to be able to account for the reduction these specific suppliers are achieving.

Business Case Tips: Show how sustainable procurement can lower emissions and often bring cost savings over time (e.g., through lower disposal costs or improved resource efficiency). Include examples of sustainable alternatives with lower total costs and stress the long-term brand and reputation benefits of prioritizing responsible sourcing.

3. Transportation and Logistics Optimization

Opportunity: Optimize logistics to reduce transportation emissions by consolidating shipments, using fuel-efficient vehicles, and opting for sea or road transport over air transport when possible.

Business Case Tips: Outline potential cost savings from more efficient routes, reduced fuel usage, and fewer shipments. Link this to operational efficiency and emissions reductions, and consider using logistics partners who can provide emissions data for tracking improvements.

4. Employee Commute Programs

Opportunity: Reduce emissions from employee commuting with remote work options, carpooling incentives, and public transport subsidies.

Business Case Tips: Present this as a way to support employee well-being and retention while reducing emissions. Highlight cost savings for employees and potential productivity gains, as well as any incentives offered by local governments for reducing commute emissions.

5. Business Travel

Opportunity: Limit business travel by promoting virtual meetings and using low-emissions travel options (like train over plane) when travel is essential. Encourage employees to choose sustainable accommodations and transport providers.

Business Case Tips: Emphasize cost savings from reduced travel expenses and align this with company goals for digital transformation or remote work. Additionally, frame sustainable travel policies as a reflection of the company’s commitment to responsible practices and corporate social responsibility (CSR).

6. Waste Management

Opportunity: Improve waste management practices by enhancing recycling, reducing waste generation, and supporting circular economy initiatives.

Business Case Tips: Outline potential cost savings from reduced disposal fees and highlight any revenue from recycling programs. Emphasize the alignment with circular economy principles, which are increasingly valued by consumers and stakeholders, and underscore the potential for operational efficiency and environmental impact reduction.

7. Product Lifecycle Management

Opportunity: Design products with sustainability in mind, considering the entire lifecycle from production to disposal. Promote product reuse, recycling, and efficient end-of-life disposal.

Business Case Tips: Highlight how sustainable product design can differentiate your offerings and reduce total lifecycle emissions, which may also create competitive advantages. Stress that consumers are increasingly favoring products with low environmental impacts, and this approach could strengthen brand loyalty and open up new market opportunities.

 
 
💡
Check out the Business Case Templates available in the Sumday Academy🎓 for more details on evaluating reduction initiatives and reach out to the Accounting support team at any time for assistance.
 
 
Did this answer your question?
😞
😐
🤩