SUPPLY CHAIN
SCOPE 3 WHO ’ S RESPONSIBLE AND HOW DO THEY REPORT ?
It ’ s inevitable that suppliers and customers have roles to play , but how does Scope 3 impact them , and what can they do to report emissions effectively ?
WRITTEN BY : TOM SWALLOW
Who ’ s responsible for ensuring that the world reaches its emissions reduction targets ? Inevitably everyone has a part to play when undergoing such a massive transition to reshape the future climate of the planet . The impending irreversible impacts of climate change are merely predictions from lengthy sources of data and information provided by wellresearched bodies .
As a result , organisations can only do the same – i . e . turn to data to discover their impact and showcase it in a measurable , actionable format . However , such a task is not as simple as it may seem . One business cannot simply record data for its entire supply chain , leaving Scope 3 emissions – those of their suppliers ’ suppliers – a difficult calculation to make without consistent collaboration . For commercial accountability , it ’ s looking like the world needs businesses to create an interconnected web of information sharing in order to fully understand their trailing impacts .
For Mike Barber , Partner in ESG and Risk Advisory at Deloitte , data and insight generates an understanding of the routes businesses can choose to reduce their environmental impacts in the most effective , least disruptive way .
“ I ’ m interested in measuring the gamut of impacts that organisations have , deliberate and incidental , and then helping them factor those in . Some of those can be monetised . You can put a proxy price on carbon in some circumstances , but you can also measure lots of dimensions of ESG to help organisations then make more qualitative decisions and understand the difference between path A and path B ,” Barber explains .
“ The reason that we talk about Scope 3 emissions is because it ’ s required by organisations to take a view of their position in the value chain , and that for almost all organisations means looking up and downstream .”
From this point , we can gather that both suppliers and customers are integral to
128 Janaury 2024