By: Steve Smith
Lowering emissions may seem challenging for many companies—but it doesn’t have to be. Most Scope 3 emissions come from suppliers and shipping, and they often represent a significant portion of a company’s overall carbon output. So, how can you begin to address Scope 3 emissions within your supply chain?
Scope 3 emissions differ from Scope 1 and 2 emissions, which arise from direct activities and energy use. As such, they can be more difficult to manage. Nevertheless, addressing Scope 3 emissions is crucial for meeting your sustainability goals. So, what steps can you take to reduce these emissions?
5 Methods to Lower Scope 3 Emissions
Finding effective ways to reduce Scope 3 emissions is essential. It often requires rethinking sourcing practices, materials, logistics, and even product design. Below are five strategies that may help companies reduce their Scope 3 emissions.
Selecting Low-Carbon Suppliers
Suppliers can have a significant impact on your carbon footprint, especially if they rely heavily on fossil fuels or have inefficient practices. Therefore, it’s important to prioritize suppliers who focus on sustainability for Scope 3 reduction. Look for suppliers that use renewable energy, recycle materials, and actively monitor their emissions. Some companies even ask suppliers to outline clear climate goals before entering into agreements. Such steps can help align your business with those committed to sustainability.
Reevaluating Product Materials
Switching to low-carbon or recycled materials can be a more sustainable choice. While some materials require considerable energy to produce, others contribute to excessive waste. For instance, using recycled metals instead of newly mined ones can reduce emissions by a substantial margin. Additionally, many consumers prefer brands that prioritize environmental responsibility. Incorporating innovative materials not only reduces emissions but may also attract eco-conscious customers.
Improving Transportation and Logistics
Many companies still rely on traditional diesel trucks, long-haul shipping, and inefficient transportation routes. However, it’s possible to reduce emissions by employing more efficient logistics strategies. One option is to collaborate with suppliers who utilize electric or biofuel-powered vehicles. You can also reduce emissions further by consolidating shipments and sourcing from local suppliers, which can also lead to cost savings.
Motivating Suppliers to Set Science-Based Targets
An increasing number of companies are encouraging their suppliers to adopt science-based targets for emissions reductions. Rather than merely seeking incremental changes, you can motivate suppliers to make more ambitious commitments. Offering incentives, such as extended contracts or financial support, may encourage suppliers to adopt more sustainable practices.
Lengthening Product Lifespan and Embracing Circular Economy Practices
Many businesses are shifting from a “make, use, and dispose of” approach to one that embraces the principles of the circular economy. In this model, products are designed for reuse, recycling, or remanufacturing. Consider offering take-back programs where customers can return old items for refurbishment and resale. This approach not only cuts down on waste but also helps reduce emissions over the long term.
Final Thoughts
While reducing Scope 3 emissions can seem complex, it is very much within reach. By focusing on your supply chain and adopting more sustainable practices, you can have a meaningful impact. Though the process may take time, your efforts to reduce emissions will likely be noticed by customers, investors, and regulators. Taking action now will help position your business for a more sustainable and resilient future.
Published by Anne C.
