Purchased goods and services 2. While chemicals are fundamental to modern society and innovative breakthroughs,. Fuel and Energy-Related Activities These emissions can come from a variety of sources, such as the production and transportation of materials, waste disposal, employee commuting, and the use of company-owned vehicles. The Melbourne-based miner's scope 3 emissions were 402.5MTCO2E in the 12 months to 30 June, with iron ore making up an estimated 205.6 to 322.6 million tonnes contribution to that total. Other KPIs that address emissions through targeting areas of material impact for the relevant industry or company (e.g., waste reduction) Absolute targets provide the greatest transparency and commitment to directly reduce emissions and therefore are often the most challenging to set. Our diverse teams of experts combine innovative thinking and breakthrough useof technologies to progress further, faster. citric acid production. "Calculating Scope 3 emissions is particularly challenging in the chemical industry, due to the complexity of chemical production. purchased electricity. These so-called scope 3 emissions make a considerable contribution to the climate footprints of compa. Scope 2: Indirect Emissions from Energy. Guest Speakers: Rowan Adams, Executive Vice President, Corporate Affairs, and Anna Pierce, Director of Sustainability at Tate & Lyle. Set a net-zero or other decarbonisation targets and support your application to the Science . The chemical sector is the largest industrial energy consumer and the third largest industry subsector in terms of direct CO 2 emissions. The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network. This impact tells one side of your story. Scope 3 emissions fall within 15 categories, though not every category will be relevant to all organizations. When you visit the Site again, the cookies allow us to recognize your browser. From 2004 to 2013, Stephanie worked at HSBC across the corporate banking and sustainability teams, including latterly as the deputy Global Head of Sustainability Risk. Matteo has joined Lloyds Banking Group from Vodafone UK, where he supported the business in setting the roadmap to deliver the 2025 sustainability targets, whilst reducing the company energy cost base. Contact us to learn more. By creating a chemical industry-specific guideline, TfS is empowering suppliers and corporations to easily produce quality carbon footprint data for the first time. Adding 18 billion of value to the UK economy, the Chemical industry is fundamental to modern society, underpinning global manufacturing supply chains, providing materials and products into a range of sectors from aerospace to pharmaceuticals, construction to consumer goods. She holds qualifications from IEMA, CIBSE and the UN PRI. The Guideline can be used by both corporations and suppliers to identify, track and reduce Scope 3 upstream emissions. Each expanded functionality category is explained in more detail later in this topic. Some foreword thinking . Applying SBT methods to scope 3. It is a first-of-its-kind resource for the industry, drawing on commonly used international standards and guidelines such as ISO, the GHG Protocol and the Pathfinder Framework (PACT powered by WBCSD) while offering the specificity needed for the chemical industry.. Montreal Protocol gases are mainly propellants, foams, or liquids and gases used for cooling and refrigeration that are produced by the chemical industry. While at Oxfam, he was on the board of the Jubilee 2000 Debt Relief campaign. Failure to report on Scope 3 will create an inaccurate picture of your companys emissions profile and susceptibility to climate change risks. The GHG Protocol guidance cannot capture the complexity of each industry and there is limited sector-specific guidance available. This limited supply chain within the sector reduces competition and could reduce the opportunities the business has to cut the embodied carbon of their products. However, this may change as the SBTi are in the process of developing a Chemical sector pathway for setting SBTs. While significant in emissions impact, the process of sourcing and accurately capturing data for Scope 3 can be a challenge. Provide guidance on addressing the impact of the circular economy (e.g., recycling) in accounting and target-setting. These emissions physically occur at the facility where electricity, steam, and cooling or heating are generated. 5 July, 10:00-11:00 BST, Amelie Tan Matteo is aSenior SustainabilityManager with an Engineering background, an MSc in Renewable Energy and Energy and Sustainability Management experience in some of the largest British energy consumers. Scope 3 emissions, also referred to as value chain emissions, often represent the majority of an organization's total GHG emissions. Global Head of Sustainability - Consumer & Manufacturing 27 April, 10:00-11:00 BST, Andrew Davenport Previously, Emma worked at Carbon Intelligence where she led delivery of strategic services. The Guideline will be applicable across industries; it will be open source and useful for other industries using chemical materials. By working collaboratively with cross-industry initiatives, we hope to build a more sustainable future.. By moving away from a strict Scope 3 reporting, you actually provide investors, customers and other stakeholders with a more complete view of your business impact. This is primarily because Scope 3 emissions are more difficult to accurately measure, report, and benchmark . Emma Watson joined CDP in 2021 as the SBTis Senior Manager for Net-Zero. Categories 1 and 2: Purchased goods and services and capital goods ADI is a boutique consulting firm based in Houston, Texas and specializing in oil & gas, energy, chemicals, and industrials. Taking ownership of supply chain emissions. Required fields are marked *. Because Scope 1 and Scope 2 emissions are within the direct control of a company, the criteria for identifying and reporting them is well established, transparent and consistent across industries. in lowering down of not only Scope 1 and 2 emissions from the chemical A target for its scope three emissions was announced by the German speciality chemicals manufacturer LANXESS. As Supply Chains Manager at the We Mean Business Coalition, Lydia works across net zero climate action and supply chains strategy. Clearer guidance and reporting feels tantalisingly close, but what should businesses do in the meantime? By 2050, the LANXESS Group wants both its upstream and downstream supply chains to be carbon neutral. Many fashion retailers rely heavily on third-party suppliers for materials, fabrics, and chemicals. Using 2021 data, we calculated the proportion of Scope 3 emissions to total emissions for the top 6 global mining companies. Senior Fellow The new Guideline will be invaluable downstream to the customer-facing point of the chemicals sector; it means producers of goods containing chemicals and ultimately end-users can make better . Global Lead - Commit to Action Programme Tesco, Emma Watson The Scope 3 emissions are calculated by category in accordance with the guidelines of the GHG Protocol Standard (at least "minimum boundaries "). Used to send data to Google Analytics about the visitor's device and behaviour. Tackling upstream scope 3 carbon emissions poses problems of calculation and influence. Look at the guidance available, including: ISO14064-1, GHG Protocol, science-based targets (SBTi), CDP. LEARN MORE>>>. The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user. The fashion industry has significantly reduced Scope 1 and Scope 2 emissions However, 90% of the industry's emissions are from indirect (Scope 3) sources. Take the example of a high-end fashion retailer. Schroders, Nate Aden This is also known as your carbon footprint. UK & Worldwide Regional Lead - Commit to Action Programme In fact for many organisations, this embodied carbon causes the greatest environmental impact; e.g. However, 06235381 | Privacy | Sitemap, Get the latest sustainability insights straight to your inbox. handling. Scope 3 includes the indirect emissions resulting from the consumption and use of the Company's products. CDP & Member of SBTis Corporate Engagement Team, Julia Creasey most of which come from processing, selling, and end-of-life treatment of sold Whilst this means that there are only 15 categories instead of hundreds, it can limit your ability to tell the true story of your business. Houston, TX 77494, +1 (281) 506-8234 PCF calculations provide the best product-level emissions transparency for the identification, tracking and reduction of Scope 3 GHG emissions. Reaching net-zero: Carbon offsetting Biological or Technological? There are numerous benefits associated with measuring and reducing Scope 3 emissions. The availability of PCF data is limited, and calculations are often not directly comparable. Scope 3 emissions Scope 3 encompasses emissions that are not produced by the company itself, and not the result of activities from assets owned or controlled by them, but by those that it's indirectly responsible for, up and down its value chain. Emma has extensive knowledge of the Greenhouse Gas Protocol and Scope 3 Standard, and co-authored the UK Green Building Councils Guide to Scope 3 Reporting in Commercial Real Estate. The last group of emissions under the GHG Protocol, Scope 3, however, presents a far bigger challenge for corporates and their treasurers. The technical storage or access that is used exclusively for statistical purposes. Alexis has a masters degree in Climate Change Science and Policy from the University of Bristol and is a chartered environmentalist through IEMA. Climate Change Manager Supply Chain Scottish Leather Group, Transportation and Distribution Business Development Manager, Oil & Gas Major. The data in this publication has undergone a quality assurance process and adjustments to reported ANZSIC . What is Scope 3 Carbon Accounting? Scope 3 emissions of purchased goods have historically been challenging to measure due to the complexity of chemical production the new Guideline aims to solve this. sheet steel used to manufacture white goods. Matteo currently works for Lloyds Banking Group where he utilises his knowledge of the energy industry, sustainability management, engagement and technical expertise to deliver the group operational sustainability ambitions. Scope 3 emissions are a consequence of the activities of the company, but occur from sources not owned or controlled by the company. Webinar: ADDRESSING SCOPE 3 EMISSIONS TO ACHIEVE SCIENCE-BASED TARGETS Guest Speakers: Rowan Adams, Executive Vice President, Corporate Affairs, and Anna Pierce, Director of Sustainability at Tate & Lyle. Together for Sustainability launches the open-source PCF Guideline, a new global guidance for calculating Product Carbon Footprints (PCFs) in the chemical industry and beyond. In other words, emissions that are linked to the company's operations. Calculating the carbon footprint of products provides the best product-level information for identification, tracking and reducing scope 3 GHG emissions in the industry. We operate globally from offices across the UK, US, Netherlands and Nordics. Isobel is responsible for establishing and maintaining the sustainability strategy across Owen Mumfords research and development division and communicating this strategy into all other areas of the business. According to Green House Gas Protocol, there are 15 categories that Scope 3 emissions can fall into, including capital goods, business travel, and use of sold products. The chemical and petrochemical industry is the largest consumer of energy among industrial sectors and is one of the top GHG emissions-intensive industries as well. The new Guideline will be invaluable downstream to the customer-facing point of the chemicals sector; it means producers of goods containing chemicals and ultimately end-users can make better and more sustainable choices. ADI Analytics is a boutique consulting and advisory firm specializing in oil and gas, energy, and chemicals. Together for Sustainability (TfS) is actively raising CSR standards throughout the chemical industry. Tackling supply chain emissions is an opportunity to multiply climate impact. Scope 3 emissions take place within both the upstream and downstream value chain of a business. Scope 1 emissions are GHGs released directly from a business. Scope 2 emissions are indirect emissions from the generation of including both upstream and downstream emissions. Additional Scope 3 emissions information is available in our response to Question 6.5 of our 2021 CDP Investor Survey response. Scope 3 emissions are the emissions of the remainder of the supply chain (minus electricity, i.e., Scope 2), of both upstream and downstream activities (Figure 1). Alexis is responsible for advising on the Groups approach to carbon reporting, carbon reduction and climate strategy as well as data integrity. The $4.6 trillion chemical industry is integral to sectors ranging from aerospace to consumer goods and telecommunication. A sector scoping paper in December 2020 recommended improving the resources available to Chemical businesses, including addressing the sectors high degree of fossil fuel feedstock use, heterogeneity, and prevalence of the intermediate product trade. For example, the purchased goods and services category could have sub-groups such as fossil fuel-based raw materials, bio-based raw materials, plant equipment, IT services and so on. Most companies' climate impact lies in their supply chains. Finally, Scope 3 emissions are all indirect emissions For example, BASF and Mitsui However, estimating the PCF for citric acid has many challenges, from comparing biobased materials to calculating allocation schemes and varying uses of electricity. A Scope 3 inventory that is generic and vague helps no one. According to analysis of CDP responses in 2020, 77% of the Chemical industrys emissions are in Scope 3. Here's what each covers: Near-term science-based targets must be met within a 5- to 10-year period and must address 95% of Scope 1 and 2 emissions. It is estimated to be responsible for 7% of the global Greenhouse Gas (GHG) emissions[i], 77% of which are in Scope 3[ii]. Exhibit 1 shows that based on annual GHG emissions reported for 2019 by three of the largest chemical companies BASF, Dow, and Solvay more than ~75% of their emissions are defined as Scope 3. Not really. CDP & Member of SBTis Corporate Engagement Team, Fernanda Amemiya Why should an organisation measure its Scope 3 emissions? It involves thousands of processes, products and specific . It is no longer a case of businesses simply monitoring the emissions from within their own operations (Scope 1 and 2). Head of Distribution Zone Europe In fact, scope 3 requires immediate analysis and action. and 2 and Scope 3 emissions in 2019 reported by BASF, Dow, and Solvay. Identify best practices for emissions accounting, with a focus on critical scope 3 categories for the industry. Scope 1 Although SBTI recently released its draft FLAG guidance, there isas of yetno fully agreed upon standard for measuring Scope 3 emissions. Scope 3 emissions cover all other indirect emissions that are not covered in Scope 2. Since joining the company in 2021, Isobel has accelerated Owen Mumfords sustainable product design approach by utilising a holistic approach incorporating systemic research, rationalised concept development, and a clear understanding of user experience and needs to present innovations that meet customer needs and enable a circular economy. A Scope 3 footprint of this magnitude is required to be included if businesses choose to set Science Based Targets (SBTs), and increasingly net zero commitments. The new PCF bridges this gap, offering a harmonized way to generate and share information on the emissions arising from chemical supply chains. Reduction factor will ensure emission reduction: For the period 2021-2030, the reduction factor will be increased to 2.2% per year (instead of 1.74%), resulting in a target CO2 reduction of 43% in 2030 compared with 2005. Croda, Steven Thompson It specifies, for example, how to assess the use of grid electricity or renewableenergy. emissions via collection programs, recycling, and alternative materials in the Tackling Scope 3 emissions from value chains is the key to understanding the impact and making data-driven decisions to allocate capital appropriately. Analytics cookies help website owners to understand how visitors interact with websites by collecting and reporting information anonymously. At Avieco we understand that one size does not fit all. The GHG Protocol Corporate Value Chain (Scope 3) Standard helps companies identify GHG emissions reduction opportunities, track performance, and engage suppliers at a corporate level, thus helping these companies tap missed opportunities to take accountability for their emissions. Emma has also worked at environmental consultancy, RPS Group, and gained an MSc in Carbon Management and BSc with Honours in Environmental Science, both from the University of Edinburgh. Webinar: CATEGORY 11: USE OF SOLD PRODUCTS Guest Speaker: Jonathan Dunn, Head of International Policy and Planning at Anglo American. companies but also optimize Scope 3 emissions. Scope 1 and 2 emissions together account for 36%. Preference cookies enable a website to remember information that changes the way the website behaves or looks, like your preferred language or the region that you are in. These methods are designed for addressing scope 1 and 2 emissions, but they can be applied to scope 3 as well. To view or add a comment, sign in Climate and Environment Manager In the future, this will allow consumers and the wider market to directly compare and assess the climate impact of products. A key priority was the mobilisation of private sector investment into developing countries, with a focus on impact, climate, and achievement of the Sustainable Development Goals. It harmonizes PCF calculation approaches across the industry and is applicable to the vast majority of chemical products. Overlaying the fact that scope 3 emissions are historically underreported, it is clear that scope 3 emissions is the biggest . In the chemicals industry, at least 75 percent of emissions come from scope 3. electricity, heat, steam (scope 2). Marketing cookies are used to track visitors across websites. It involves thousands of processes, products and specific technologies. Our people are strategists, innovators, designers, consultants, digital experts, scientists, engineers andtechnologists. You can find more information about the cookies we use on our Cookie Policy. An example of this is when we buy, use and dispose of products from suppliers. Scope 3 reporting has thus far been mostly voluntary, but the pressure to make it mandatory . Alongside the CEO, Simon Boss, he leads on the firms commitment to ESG and, in particular, its pledge to become a carbon net zero business with a target for the firms operations to achieve net zero emissions by 2025. Used by Google Analytics to throttle request rate. The intention is to display ads that are relevant and engaging for the individual user and thereby more valuable for publishers and third party advertisers. Global Head of Value Chains & Regional Director Corporations Whilst Scope 3 impact could (and should) be reported on for SBTs or net zero, your reporting does not need to end there. What are scope three emissions? products itself than the average end-user for whom recycling or alternative materials The chemical industry is both one of the largest consumers of energy globally and a hard-to-abate sector. As discussed above, Scope 3 emissions are indirect emissions, most of which come from processing, selling, and end-of-life treatment of sold products of the chemical companies. Scope 1 emissions are direct emissions from a company's operations. Sky, Olwen Smith Senior Sustainability Manager Earlier in her career, she held account management roles at a tech company and worked at a Berlin-based social impact start-up. 12 May, 10:00-11:00 BST, Kim McCann [i] Sources: IPCC, UN, The Guardian, Our World in Data, CAMELOT | Note: The 7% are the total GHG emissions of Industry-Chemicals and Energy-Chemicals plus the respective shares of unallocated energy emissions and caused by energy production. Long-term science-based targets are . As Scope 3 emissions usually account for more than 70 percent of a business carbon footprint, it is crucial that companies tackle Scope 3 emissions to meet the aims of the Paris Agreement and limit global warming to 1.5C. 2022 Reducing Scope 3 Emissions - Webinar Series, Purchased Goods & Services & Capital Goods, Global Head of Value Chains & Regional Director Corporations, UK & Worldwide Regional Lead - Commit to Action Programme, Design Engineer (Sustainable Product Development), Global Head of Sustainability - Consumer & Manufacturing, 2020 Reducing Scope 3 Emissions - Webinar Series. Consulting Director For most companies setting net-zero targets, the chief procurement officer may be the most important person in the room. Nate has more than 15 years of experience working on industry, trade, energy, and climate in Asia, the U.S., and Europe. This means not only tackling emissions in Scope 1 and Scope 2, but most importantly tackling emissions in Scope 3, the value chain emissions. He has authored or co-authored dozens of peer-reviewed journal articles and reports, including Technologies and policies to decarbonize global industry: Review and assessment of mitigation drivers through 2070. These indirect emissions often represent the largest portion of your corporate footprint; in some cases, they account for as much as 90% of an organization's total emissions. Furthermore, they enable companies and suppliers to work on the reduction of their emissions, which ultimately will improve the industrys carbon footprint. sources. ADI Analytics actively tracks decarbonization trends in the chemical industry along with drivers such as regulatory push, consumer buying trends, sustainability goals of chemical companies, and recycling technologies.
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