eBooks & Guides

Companies are faced with a daunting level of complexity when trying to assess Scope 3 emissions because they take place outside of organizational boundaries and cannot be measured directly. This is on top of the fact that there is no straightforward and standardized way to calculate Scope 3 like there is for Scopes 1 and 2. Ultimately there is no one-size-fits-all approach to Scope 3 reporting, but what is important is that firms get started, even while using incomplete data. This allows firms to make mistakes and learn from them in preparation for more rigorous expectations in the future. Small iterative steps, while promoting full transparency around calculation methodologies are key. C A L C U L A T I N G S C O P E 3 E M I S S I O N S Review the Accounting Standards and Methods: Even if you plan to work with a consultant to guide your inventory process, it is recommended to take the time to review the accounting standards and methods, starting with the GHG Protocol Technical Guidance for Scope 3 Emissions. Mapping the Value Chain Conduct a preliminary Scope 3 inventory to identify emission hotspots to know where to focus (you will need to define the boundaries of your operations, map out your value chain, and undertake a Scope 3 inventory, likely starting by using estimation until you can gather more robust data. When it comes to mapping the value chain, a common approach is to select your top product(s) by revenue and identify the suppliers for key components, focusing on areas where you might anticipate that there would be high emissions. If you are unsure where to focus, start by identifying your most significant direct suppliers, customers, and end users. Copyright 2024 Tango. All rights reserved.

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