So far, we have discussed Scope 1 and 2 emissions. In the next video, Kornelis Blok now turns to Scope 3 emissions. Remember: these are all the emissions that result from the company’s operations, but they do not take place at the company’s premises or are related to the company’s energy use.

Key takeaways

• Upstream emissions are emissions related to the inputs of the company. Downstream emissions are emissions related to the output of the company.
• There are 15 different categories of Scope 3 emissions. For example, in the Upstream category, there are the emissions associated with purchased goods and services. Also, many energy-related emissions are already included in Scope 1 and 2, but fossil fuels also have their supply chains. Transportations also need to be included, which requires energy and generate emissions. Business travel and commuting of employees can also be relevant categories. In the Downstream category transport plays a role: products must be transported to the final consumer. Moreover, even after the projects have arrived at the final consumer they can generate emissions, for instance, due to their energy consumption.
• It is important to determine what these total emissions are and in which categories they occur before a company can try to reduce its Scope 3 emissions. The standard approach to determine scope 3 emissions is conducting an environmental life-cycle analysis.
• Once the most important greenhouse gas emissions have been determined, a company can embark on a process to reduce these emissions distinguishing two different approaches: engagement and enforcement. In the case of engagement, the company starts a process of interaction with the suppliers aimed at convincing them to reduce their greenhouse gas emissions. In the case of enforcement, the focus is on setting requirements for the products the company purchases.
• It should be noted that climate action in the supply chain is still in an early stage of development. It can be very complex, and to do it well, a company must often engage with many different suppliers and tackle many different products.
• Climate action is possible for every company or other organisation. Scope 2 is the first to tackle, Scope 1 is already a lot more difficult, but for many companies, there are good ways to reduce their emissions. And Scope 3 is also very important for many companies, even though it requires structural changes in operations.