Addressing Scope 3 Emissions: Strategies for Businesses and Supply Chains

What are Scope 3 Emissions?

Scope 3 emissions are emissions indirectly created by the regular operation of your business. These emissions are not coming from processes directly owned by your organization but are still essential for business operations. For example, the emissions created from the delivery of the raw material to produce your product is an example of a Scope 3 emission.

To learn more about Scope 3 emissions, read about how they can affect your business.

How Businesses Address Scope 3 Emissions

Scope 3 emissions encompasses 15 different types of indirect emissions. Because of the wide variety this category encompasses, there are several different strategies you can take to reduce Scope 3 emissions throughout your supply chain. We’ve outlined five strategies below.

1. Partner with Suppliers that Disclose Emission Information

If your organization is looking for ways to minimize carbon emissions, a good step to consider is the analysis of vendor carbon emissions. When you have visibility into emissions across the supply chain, you can set joint reduction targets with suppliers and collaboratively track progress. Actively integrating sustainability performance into procurement decisions is a proactive way to minimize Scope 3 emissions in the long run. This approach involves analyzing vendor emissions, selecting partners who share your mission and values, and working together to achieve meaningful reductions. Additionally, this strategy can motivate suppliers to lower their emissions, creating a ripple effect of sustainability improvements throughout the supply chain.

2. Optimize Logistics and Distribution Networks

Creating a more efficient logistic system and distribution network introduces the opportunity to cut emissions from these processes. Take a look at your transportation and distribution systems and see if there are any ways you can consolidate processes or find more efficient distribution routes. Consider adopting more efficient modes of transportation, like utilizing railway systems instead of planes or adopting lower-emission vehicles.

Making major changes all at once can be a challenge—consider how you can take smaller steps to adapt your current process to make a larger impact. Equip drivers with route optimization software, or start by analyzing what parts of your logistics process produce the most emissions and take efforts to streamline just that part. Starting small is the first step to making a big change.

3. Rethink Packaging and Purchased Materials

Significant emissions savings can be achieved by reducing material intensity across the supply chain. Companies should challenge suppliers to minimize packaging size and weight where possible without compromising product integrity. When selecting packaging materials, recyclable and renewable options should be prioritized while avoiding materials that are difficult to recycle. Implementing take-back programs can also help vendors reduce waste. Taking a collaborative approach with suppliers to optimize packaging and materials use is an impactful way to lower emissions.

4. Optimize Employee Commute and Telecommute Practices

Reducing Scope 3 Category 7 emissions requires rethinking how employees commute and work remotely. Start by evaluating current commuting patterns and remote work energy consumption to identify areas for improvement. Explore ways to reduce emissions by encouraging sustainable commuting options, such as carpooling, public transportation, or switching to lower-emission vehicles like electric or hybrid cars. For telecommuting, focus on reducing the energy consumption of remote work. Provide employees with energy-efficient equipment like LED lighting, smart thermostats, and devices certified for energy efficiency. Additionally, consider offering incentives for home upgrades, such as improved insulation or renewable energy installations, to further reduce work-from-home emissions.

Making major changes can feel overwhelming, so start with smaller steps. For instance, offer subsidies for public transit passes, implement telecommuting policies that encourage energy-saving practices, or partner with employees to identify and offset high-impact emissions areas. Even incremental changes can build momentum toward significant reductions in your company’s commuting-related carbon footprint.

5. Leverage Insets and Offsets Strategically

Minimizing carbon emissions is the ultimate goal, but some emissions are challenging to eliminate completely. This is where the strategic use of insets and offsets comes into play. Scope Zero’s Carbon Savings Account (CSA) offers an innovative solution to directly reduce a company’s Scope 3 emissions, particularly those generated by employees working from home (WFH) and commuting.

Consider this example from Nike’s emissions. For larger companies like Nike, emissions from WFH and commuting activities often surpass their Scope 1 and 2 emissions combined. The CSA empowers organizations to address these emissions directly via insetting, creating meaningful reductions without relying solely on carbon offset programs.

While decarbonizing complex value chains requires time and strategic planning, leveraging tools like the CSA allows companies to make tangible progress on hard-to-reduce Scope 3 emissions. And doing so complements broader efforts to reduce an organization's overall carbon footprint while fostering long-term sustainability.

Tackling Scope 3 emissions also involves reshaping relationships and decisions across the supply chain. To discover how Scope Zero’s Carbon Savings Account platform can support your decarbonization journey, schedule a demo today.

Scope 3 Reduction Strategies FAQ

How can Scope 3 emissions be reduced?

Scope 3 emissions can be reduced by partnering with eco-conscious vendors and partners, optimizing logistics and distribution habits, utilizing recyclable materials for packaging, reducing work-from-home and commute emissions with the Carbon Savings Account® (CSA), and leveraging carbon credits when needed.

Why is it hard to measure Scope 3 emissions?

Scope 3 emissions are emissions from indirect sources from your organization’s business but not directly created by processes owned by your business. For example, the emissions created by your employee’s commute are an example of Scope 3 emissions. Because organizations don’t own any of these processes, calculating Scope 3 emissions accurately can be a challenge.

Reduce Scope 3 Emissions with a Carbon Savings Account

Foster employee financial wellness while reducing carbon emissions. Scope Zero’s CSA measures, reduces, and reports on Scope 3 work-from-home emissions, all while engaging employees.

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