Scope 3 emissions refer to greenhouse gases produced that most gases are produced and account for a large number of indirect emissions of a company. Businesses should be aware of them, as they are important for brands to meet their sustainability targets. However, as a business owner, you should be aware of them first.
Kavan Choksi – What are these Scope 3 Emissions, and what do they mean?
Kavan Choksi is an esteemed name in business and finance, and he has valuable experience in investments and equities. According to him, Scope 3 emissions are the outcome of direct activities that are executed on the assets that reporting organizations do not control or own but indirectly influence the value chain. They include sources that do not fall in the organization’s scope one or its scope two limits, like garbage collection, goods purchased, and other services.
He believes that it is very important for you to control these scope three emissions because any company’s upstream and downstream operations cause most of the above emissions.
Reasons to take note of Scope 3 emissions
In his opinion, hebelieves that Scope 3 emissions influence several businesses across these industries, from financial and retail services to healthcare and aviation. When it comes to the six corporate goals, they are now focusing on the reduction of Scope 3 emissions. This makes several companies focus on their social, environmental, and governance objectives.
Companies indirectly produce scope three emissions, and they are tremendous. Due to the above, it is important for brands to attain their sustainability goals to benefit a green business environment for the broader society. Besides the above, it is worth for businesses to note that despite their drive to lessen scope 3 GHG emissions, there are several companies that fall behind in the challenge as they are the most complicated emissions to manage as they rely on supplier and consumer actions.
Management for scope three emissions
In order to manage these emissions successfully, businesses should set a goal, delegate responsibilities, and devise strategies. This starts with the development of a goal for decarbonization that is actionable. Businesses should take time to carefully consider certain factors for the above. Here, it is prudent for the company to consider expenses, hold their P&L owners responsible, and agree on a structured plan that is linked to value when setting out objectives.
Stop relying on the efforts of others; collaboration with them is the key
According to Kavan Choksi, businesses should stop depending upon others and do their best to create partnerships and communicate with stakeholders relevant to the business for managing scope three emissions. If you are a business owner, you should help customers and suppliers succeed by controlling what you are able to do and helping them when and as necessary.
These efforts should be consistent, and with the period of time, you will find you are making a positive difference to your business and the whole environment as well!