A meaningful and consistent comparison of emissions over time
requires that companies set a performance datum with which to
compare current emissions. Setting a base year is essential to
observe and account for changes and trends in your emissions.
Selecting the Base Year
Not all Scope 3 categories may be relevant to a particular reporting
company. You will need to go through a structured process to
understand the different Scope 3 categories and determine which of
the 15 categories are relevant for your company.
Companies will often choose to report on certain activities not
because they are material or relevant, but because the data is easier
to collect than other activities. Business travel is often the most
reported category amongst corporations despite it typically
accounting for less than 1% of most firms' total emissions. Categories
that are typically more material like the use of sold products require
more effort to account for and are ignored by companies. Firms
should avoid falling into this trap.
Identify Relevant Categories
In this step, you will estimate the emissions associated with each activity in your
value chain. Where possible use public data, pulling from data that has been
disclosed to entities like CDP or Ecovadis. Ideally, a company should be using
primary data collection directly from supply chain partners with the largest spend
and highest emissions. Collecting this data directly from suppliers through surveys or
collaborative platforms to assess emissions associated with purchased goods and
services can be challenging, but it is not impossible. Increasingly, companies are
asking their suppliers to disclose their emissions using the CDP Supply Chain
questionnaire. Requiring suppliers to provide data during the supplier qualification
process is another way to encourage emissions data sharing in advance. However, in
the early stages, this primary data is often unavailable and most companies begin by
making estimates using proxy data based on published emission factors.
The GHG Protocol provides different methods to measure and calculate your
emissions based on data availability: Technical Guidance for Calculating Scope 3
Emissions.
Scope 3 Data Gathering & Calculations
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