As the push for sustainability intensifies, supply chain leaders grapple with the complexities of Scope 3 emissions reporting. Here we explore the challenges and offers practical solutions for effective data collection and reporting.
Understanding the Scope 3 Emissions Challenge
Scope 3 emissions, particularly those related to transportation, pose a significant challenge for many companies. These emissions, originating from both upstream and downstream transportation activities, can account for up to 40% of a company’s total greenhouse gas emissions. The task of accurately capturing the necessary data for these emissions is critical, yet complex and resource-intensive.
The primary hurdle is the collection of consistent and precise data from logistics service providers. The multi-modal nature of supply chains, involving various transport types like road, sea, and air, along with different vehicle sizes and fuel types, complicates the data collection process. Approximately 60% of companies struggle with obtaining standardized and reliable data from their logistics providers, according to the Global Compact Network Germany.
Strategies for Effective Scope 3 Emissions Reporting
The lack of standardized data collection methods hampers companies’ ability to accurately measure and report their Scope 3 emissions, hindering their ability to track sustainability progress. To address these challenges, companies must establish clear goals for data collection, work closely with their logistics partners, and consider adopting standardized tools and frameworks to streamline the data gathering and reporting process.
By doing so, they can better manage their Scope 3 emissions and make meaningful strides toward reducing their overall carbon footprint while staying compliant with regulations such as the CSRD and standards like ISO14083.
Supply chain software vendor Gryn and Supply Chain Movement have developed a checklist to help companies assess their Scope 3 transport emission reporting. This tool can help determine whether the Scope 3 reporting for the transportation-related emissions of your company is below par, reasonable, or optimal.
