SUPPLY CHAIN
Unless you ’ ve been living under a rock , you ’ ll have noticed that Scope 3 has become one of the most extensively-debated topics within the wider sustainability discussion .
While Scope 1 covers a company ’ s direct emissions and Scope 2 is focused on energy usage , Scope 3 covers the greenhouse gas emissions ( GHG ) from upstream and downstream activities in a company ’ s value chain .
Conversation has amplified in recent years as regulatory bodies consider implementing sweeping new rules and directives which would require businesses to report their Scope 3 emissions .
However , in March , the US ’ Securities and Exchange Commission ( SEC ) opted to shelve its version of these plans more than two years after they were initially proposed – despite the fact that these emissions account for a significant chunk of a typical organisation ’ s overall pollution .
Across the Atlantic , the European Commission officially adopted the European Sustainability Reporting Standards ( ESRS ) in 2023 . This means firms must begin disclosing their Scope 3 emissions between 2024 and 2028 , with the timeline depending on the size of their workforce and turnover .
Naturally , Scope 3 was discussed at length during Sustainability LIVE : Net Zero , a groundbreaking event which brought together executives and experts from some of the biggest companies in the world .
146 June 2024