The issue of Scope 3 greenhouse gas emissions is discussed in a new report, “How Sustainable is the Technology Sector? Part Two”, from market intelligence consultancy, iResearch Services. It features the views of sustainability specialists, consultants, technology leaders and decision-makers about the key challenges and opportunities presented by sustainability and environmental, social and governance (ESG).
Technology companies can become overwhelmed by disruptive reporting requirements for Scope 3 emissions, it is often claimed.
Like nesting dolls, they can present multi-level challenges in recording the emissions of suppliers and their suppliers.
Greenhouse gas emissions of businesses and organizations are placed into three categories:
Scope 1 emissions
Greenhouse gas emissions that a company makes directly, caused by running machinery, driving vehicles, or heating buildings, for instance.
Scope 2 emissions
Indirect emissions created by the production of the energy that an organization buys. For instance, using solar panels or sourcing renewable energy.
Scope 3 emissions
Other emissions for which a company is indirectly responsible across its value chain and during its life cycle. This includes energy produced by suppliers or from the use of its products.
Alexandra Nicholson, Senior Director of Social Media and Impact at Pegasystems (Pega), a maker of AI software, says, “I think everyone has a good handle on Scope 1 and 2. Everyone can say they’re sustainable if they look at themselves through the filter of Scope 1 and 2. Scope 3 thinking is quite radical for business, however, and it’s quite disruptive to have to think about Scope 3 emissions. In addition to your own immediate suppliers, you have to think about your suppliers’ suppliers, and so on.
“Scope 3 is like a nesting doll that is very overwhelming to have to think about how to tackle, and no one has agreed on a unified way to approach it. I think a lot of the unanswered questions relative to an organization’s sustainability are going sit within Scope 3.”
Companies can aid the process of defining and measuring Scope 3 emissions with help from industry partnerships, says Emanuel Kolta, Senior Analyst, Network Sustainability and Innovation at GSMA Intelligence – a global organisation for the mobile sector.
“Without trade bodies and without these kinds of collaborations it’s going to be very hard to define it and make sure that everyone accepts these kinds of definitions. I think disclosing data, disclosing emissions levels and educating the customer base are the most important aspects in becoming more sustainable as an industry from my perspective. Disclose, and educate!”
The solution, says Emanuel Kolta, is for companies to set sustainability targets for Scope 3 and to measure the results.
“For sustainability transformation you should start with setting up targets. Start measuring. I believe that you can’t really control something if you can’t measure it. So, let’s see where we are now, how much we are emitting, what energy are we using.”
