In today's environmentally conscious world, the sustainability of a business is not just about its ability to endure but also about its impact on the planet. The push towards sustainable practices is driven by a growing awareness of our environmental challenges and the understanding that businesses play a pivotal role in addressing these issues.
But what is sustainability in business? This blog aims to dissect the intricacies of business sustainability, focusing on the critical elements of Scope 1, 2, and 3 emissions, which collectively form the backbone of a company's carbon footprint.
Understanding your business' carbon footprint
The term 'carbon footprint' has become synonymous with environmental responsibility, representing the total amount of greenhouse gases, including carbon dioxide and methane, emitted by our actions or the products and services we use.
For businesses, this encompasses everything from the electricity used in offices to the product delivery logistics. A deep dive into understanding and quantifying these emissions is the first step towards crafting a more sustainable business model. It's about recognising the shadow our activities cast on the environment and taking deliberate steps to lighten that shadow.
Scope 1 emissions: Direct emissions from owned or controlled sources
Scope 1 emissions refers to the direct emissions from activities a company directly controls or owns. These can range from the fuel used in company vehicles to the cooling in company buildings. The key to managing these emissions lies in accurately measuring them, which can be achieved through various methodologies, including greenhouse gas inventories.
Once identified, companies can explore a multitude of strategies to reduce these emissions. This might involve transitioning to energy-efficient vehicles, retrofitting buildings with energy-saving technologies, or even exploring renewable energy sources for direct use. The goal is to minimise the business' direct impact on the environment through its immediate operations.
Scope 2 emissions: Indirect emissions from the generation of purchased energy
Scope 2 emissions take us one step further from the direct control of a business, encompassing the indirect emissions from the generation of purchased energy. This includes the electricity a company buys to light its offices or the steam used in its manufacturing processes. The challenge here lies in these emissions occurring at the energy production site rather than directly at the business.
However, companies can manage these emissions through their energy procurement choices. Options such as purchasing renewable energy certificates, investing in off-site renewable energy projects, or directly sourcing green energy can significantly reduce a company’s Scope 2 footprint. The emphasis is on making informed choices about where and how energy is sourced, reflecting a commitment to sustainability even in indirect actions.
Scope 3 emissions: All other indirect emissions in a company’s value chain
Scope 3 emissions are the most extensive and often the most complex to address, covering all other indirect emissions within a company’s value chain. This includes emissions associated with the production of purchased goods, transportation of purchased fuels, and even the use of sold products like packaging.
The expansive nature of Scope 3 emissions means that addressing them requires a comprehensive approach that often extends beyond the company’s immediate boundaries. Businesses can engage with suppliers to encourage greener practices, redesign products to be more sustainable, and optimise logistics to reduce transportation emissions. Addressing Scope 3 emissions is about looking at the broader picture and making sustainability a shared goal across the value chain.
