of each Scope 3 category relative to both total Scope 3 emissions and total Scope 1+2+3 emissions (as reported in C6.1, C6.3, C6.5, and C-FS14.1a for the Financial Services sector). Landsec, Karl Desai Cookies cannot read data off your hard disk or read cookie files created by other sites. Scope 3 emissions of purchased goods have historically been challenging to measure due to the complexity of chemical production the new Guideline aims to solve this. three scopes. The GHG Protocol guidance cannot capture the complexity of each industry and there is limited sector-specific guidance available. This definition to a certain extent shifts Consumer products containing chemicals can save energy use and help reduce carbon emissions, such as insulation, low temperature detergents, electric cars or components in wind turbines and solar panels. The new Guideline will be invaluable downstream to the customer-facing point of the chemicals sector; it means producers of goods containing chemicals and ultimately end-users can make better and more sustainable choices. Scope 2 accounts for purchased power, such as electricity and heating. Corporate GHG Emissions in the Chemical Sector Value Chain (WBCSD). "Calculating Scope 3 emissions is particularly challenging in the chemical industry, due to the complexity of chemical production. Please join World Business Council for Sustainable Development (WBCSD) and Together for Sustainability (TfS) for a virtual panel discussion with three major chemical companies that have begun using a first-of-its-kind solution tailored for the chemical industry: The PCF Guideline. Together for Sustainability creator of the PCF Guideline is a member-driven initiative, made up of chemical companies committed to building global CSR standards throughout their industry and across the entire chemical supply chain. As a result, he has developed a keen insight into, and understanding of, people, business culture and motivation which make him ideally placed to chair Shoosmiths partnership. (GHG) emissions, the GHG Protocol Corporate Standard classifies emissions into Brett points out that across the many companies they work with, Scope 3 emissions account for a surprising 90% of total emissions. The fashion industry has significantly reduced Scope 1 and Scope 2 emissions However, 90% of the industry's emissions are from indirect (Scope 3) sources. CDP & Member of SBTis Corporate Engagement Team, Fernanda Amemiya Scope 3 emissions fall within 15 categories, though not every category will be relevant to all organizations. Tracks the visitor across devices and marketing channels. Obviously an issue that needed urgent tackling. Apple's experience shows that for many businesses seeking to become carbon neutral, the bulk of progress must be made in reducing scope 3 emissions - especially for companies selling physical products. BASF . Covestro is in good company here: This ratio reflects the overall situation for the chemical industry, which is responsible for about 7 percent of global Greenhouse Gas Emissions (GHG), nearly 80 percent of which are in Scope 3. Source: analysis of CDP responses in 2020, via Avieco, Translating Scope 3 emissions for the chemical sector. Please choose your settings for optional cookies. During our interactive event, youll hear from cross-sector sustainability leaders and chemical companies on their experience with the PCF Guideline, including: How suppliers and corporations can use it, How it can be rolled out in your organisation, Please note that this event will be recorded, and the recording may be publicly available. 23 June, 10:00-11:30 BST, Sonya Bhonsle Capital goods 3. The remaining 99 percent are scope 3 emissions, including 76 percent from supplier manufacturing and 14 percent from consumer product use. Houston, TX 77494, +1 (281) 506-8234 While this may seem like a daunting task, there are four key steps that major purchasers are taking to reduce Scope 3 emissions and encourage suppliers to embrace environmental ambition. sheet steel used to manufacture white goods. The retailer will have . recycling in the upcoming blogs. Regulatory and government agencies are introducing various A key priority was the mobilisation of private sector investment into developing countries, with a focus on impact, climate, and achievement of the Sustainable Development Goals. Scope 3 emission sources include emissions both upstream and downstream of the organization's activities. The Scope 3 Standard provides a methodology that can be used to account for and report emissions from companies of all sectors, globally. including both upstream and downstream emissions. Business Development Manager, Oil & Gas Major. We wrote in an earlier blog that the Paris Agreements goal to limit global warming to well below 2 C compared to pre-industrial levels will be challenged by decarbonization of several hard-to-abate sectors. All Rights Reserved, 440 Cobia Drive Before joining dentsu, she spent 6 years supporting FTSE 250 companies in the development of their sustainability targets, disclosure and engagement with employees, customers, and investors. Launched in September, the PCF Guideline has been created by TfS a sustainability collaborative of over 37 global chemical companies to establish a consistent way of generating PCFs throughout the chemical industry. Unless you have one specific customer or end application, like a car, it is challenging to estimate the emissions coming from the use of your product once its sold on. Together for Sustainability launches the open-source PCF Guideline, a new global guidance for calculating Product Carbon Footprints (PCFs) in the chemical industry and beyond. Senior Fellow Scope 3 emissions of purchased goods have historically been challenging to measure due to the complexity of chemical production - the new Guideline aims to solve this. Browse our renowned blog, learn from our videos, and access the ADI newsletter archive for insights on oil & gas, energy, and chemicals. Scope 1 emissions are direct emissions from owned or controlled This impact tells one side of your story. Areas covered. Calculate your Scope 3 emissions based on information specific to your supply chain and business. Your email address will not be published. 22 September, Brussels: Together for Sustainability (TfS), a sustainability initiative and global network of 37 companies raising CSR standards across the chemical industry, is launching the first-of-its-kind guideline to transform the way chemical companies calculate and track upstream supply chain emissions. 27 April, 10:00-11:00 BST, Andrew Davenport Our 2022 Scope 3 Webinar Series follows on from three webinars the UN Global Compact Network UK hosted in 2020: Webinar: CATEGORY 1: PURCHASED GOODS AND SERVICES Guest Speaker: Dorothe DHerde, Head of Sustainable Business at Vodafone. Long-term science-based targets are . and 2 and Scope 3 emissions in 2019 reported by BASF, Dow, and Solvay. It is even more complicated if the product is combined with other products for final sale. Senior Manager, Net-Zero Scope 3 emissions are also indirect GHG emissions, accounting for upstream and downstream emissions from a product or service, and emissions across a business's supply chain. The firm also offers legal services for individuals and their families. Scope 3 includes emissions from your suppliers as well as consumers of your products and services (upstream and downstream activities). This function allows the website to load faster by pre-loading certain procedures. Registered in England no. citric acid production. LEARN MORE>>>. Finally, soon you may not have a choice. As discussed above, Scope 3 emissions are indirect emissions, Read our Privacy and Cookies Policy here, Shoosmiths LLP is a leading UK law firm across 13 locations across England, Scotland and Northern Ireland. National Grid, Purchased Goods & Services & Capital Goods Our diverse teams of experts combine innovative thinking and breakthrough useof technologies to progress further, faster. Scope 3 emissions are indirect greenhouse gas emissions other than scope 2 emissions that are generated in the wider economy. Upstream Scope 3 emissions 1. Thomas Udesen, CPO Bayer and TfS Steering Committee member, said: Calculating Scope 3 emissions is particularly challenging in the chemical industry, due to the complexity of chemical production. The Guideline can be used by both corporations and suppliers to identify, track and reduce Scope 3 upstream emissions. Because Scope 1 and Scope 2 emissions are within the direct control of a company, the criteria for identifying and reporting them is well established, transparent and consistent across industries. While created initially to meet the needs of chemical corporations and their suppliers, the TfS Guideline can be used as a calculation guideline and drop-in solution in any other global industry using chemical products. It specifies, for example, how to assess the use of grid electricity or renewableenergy. "Across all of the categories, transportation is usually a top three contributor to total emissions, representing about 10-15%," states Brett. CDP & Member of SBTis Corporate Engagement Team, Employee Commuting and Homeworking This encapsulates more than just client service, but how Shoosmiths interacts with its clients, staff and communities. Stephanie is also responsible for the Schroders ESG Accreditation framework, a set of criteria and processes which ensures the right levels of controls and accountability are in place to provide the robustness required to support the firms ESG integration ambitions. To ensure a harmonised, standardised and widespread use, TfS has therefore decided to publish the Guideline as open source. Scope 3 emissions are the emissions of the remainder of the supply chain (minus electricity, i.e., Scope 2), of both upstream and downstream activities (Figure 1). Since January 2021, she has been responsible for the strategic development and delivery of dentsus environment strategy, including supporting dentsu in becoming one of the first companies globally to achieve SBTis new net zero standard with near and long term targets. The new TfS Guideline for Product Carbon Footprint [PCF] and Corporate Scope 3 emission reporting (the Guideline) provides specific calculation instructions for emissions from cradle-to-gate for chemical materials. products of the chemical companies. Schroders, Nate Aden Some foreword thinking . According to Green House Gas Protocol, there are 15 categories that Scope 3 emissions can fall into, including capital goods, business travel, and use of sold products. Identify best practices for emissions accounting, with a focus on critical scope 3 categories for the industry. If you have any questions or would like more information on our privacy policy and your rights, please contact info@tfs-initiative.com. More details about these gases are given in Chap. It allows the website to recognise your device and store some information about user preferences or past actions. Each expanded functionality category is explained in more detail later in this topic. Take the Alliance of CEO Climate Leaders as an example - 80% of the total 4.3Gt emissions footprint from these businesses is produced by their supply chains, otherwise known as Scope 3 emissions. (not in Scope 2) that occur in the value chain of the reporting company Global CO 2 Emissions in 2010 Thus, in a way, Scope 2 emissions are a special kind of Scope 3 emissions, but they are counted separately due to historical reasons. Scope 3 emissions take place within both the upstream and downstream value chain of a business. The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network. Employee commuting 8. A Scope 3 emission is any indirect emission that results from activities related to a company or organization. Here's what each covers: Near-term science-based targets must be met within a 5- to 10-year period and must address 95% of Scope 1 and 2 emissions. According to analysis of CDP responses in 2020, 77% of the Chemical industrys emissions are in Scope 3. Since 2009, ADI Analytics has completed ~500 projects for ~200 clients. these companies may have much more resources and capabilities to reduce Scope 3 Measurement. This definition to a certain extent shifts the responsibility of those emissions away from the large chemical companies. Put supply chain sustainability first if you want your business to thrive, Fashion business must look beyond textile swapping to achieve sustainability goals. They do not actually own that material, but simply provide a chemicals service. If a company's Scope 3 emissions make up more than 40% of its total emissions, then the near-term target must cover two-thirds (67%) of Scope 3 emissions. Scope 3 reporting has thus far been mostly voluntary, but the pressure to make it mandatory . There, Emma was the technical lead for their science-based targets offering a service which she developed and brought to market and had worked with 30% of UK companies with approved science-based targets at the time of her departure. But that muddled picture is becoming a lot clearer thanks to a partnership between Independent Commodity Information Services ( ICIS) and Carbon Minds that is set to offer visibility into Scope 3 carbon footprints for scores of chemicals and polymers such as PP, polyethylene (PE), polyethylene terephthalate (PET) and more. Science Based Targets initiative (SBTi), Business Travel The chemical and petrochemical industry is the largest consumer of energy among industrial sectors and is one of the top GHG emissions-intensive industries as well. A large number of chemical companies rely on raw materials that can only be sourced from a small number of countries, and suppliers, globally. In other words, they are all of the emissions generated outside a business' direct control - by the partners, suppliers, and consumers that make up their greater business ecosystem. Responsible Business Manager 2 . ADI helps clients with multiple offerings led by our consulting services. The chemical industry, however, also emits greater than two gigatons of greenhouse gases per annum globally. Used to send data to Google Analytics about the visitor's device and behaviour. are not accessible. The table below summarizes our . Scope 3. Step 1. Before being elected to the role in 2015, Peter was head of the firms commercial division and, prior to that, head of the employment and pensions department. His research on country low-carbon transformation has been written up in the New York Times and he is a frequent speaker at industry and academic conferences. 3 The industry's inherent growth adds to the challenge. Step 2. Scope 2 emissions are for purchase electricity, heat, and steam. Scope 3 emissions are all indirect emissions - not included in scope 2 - that occur in the value chain of the reporting company, including both upstream and downstream emissions. 29 March, 10:00-11:00 BST, Natasha Allard To view or add a comment, sign in. The unique challenges and complexities of your business should be taken into account, and evaluating your Scope 3 emissions will allow you to identify where to tackle first and how to do it. Aggregating this data shows that on average, scope 3 emissions contribute to more than 95% of total emissions. 2 The US chemical industry's GHG footprint is itself over 200 million metric tons of carbon dioxide equivalent (MtCO2e) per annum. Alongside the CEO, Simon Boss, he leads on the firms commitment to ESG and, in particular, its pledge to become a carbon net zero business with a target for the firms operations to achieve net zero emissions by 2025. Failure to report on Scope 3 will create an inaccurate picture of your companys emissions profile and susceptibility to climate change risks. This presents two significant challenges for the food and beverage industry: measurement and emissions reductions. His role is to lead the firms partnership in the delivery of its strategic vision, to be the UKs leading law firm, famous for its client experience. The Guideline has been published as open source with the ambition that it may be used in other industries too. The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user. Webinar: ADDRESSING SCOPE 3 EMISSIONS TO ACHIEVE SCIENCE-BASED TARGETS Guest Speakers: Rowan Adams, Executive Vice President, Corporate Affairs, and Anna Pierce, Director of Sustainability at Tate & Lyle. By moving away from a strict Scope 3 reporting, you actually provide investors, customers and other stakeholders with a more complete view of your business impact. These so-called scope 3 emissions make a considerable contribution to the climate footprints of compa. This is largely because around half of the chemical subsector's energy input is consumed as feedstock - fuel used as a raw material input rather than as a source of energy. There are pioneers and leaders within the Chemical sector, however no business has completely perfected it yet. Discover more at paconsulting.com and connect with PA on LinkedIn and Twitter. A Scope 3 inventory that is generic and vague helps no one. Given the urgent need for a harmonized PCF calculation approach within the chemical industry, the first edition of the PCF Guideline focuses exclusively on prescribing the specifications for supplier PCF calculations. Prior to this, Matteo worked five years for Sainsburys, developing and delivering the energy management strategy of the retail and office estate and playing a key role in the achievement of the 2020 carbon reduction targets. Emma has extensive knowledge of the Greenhouse Gas Protocol and Scope 3 Standard, and co-authored the UK Green Building Councils Guide to Scope 3 Reporting in Commercial Real Estate. ADI Analytics actively tracks decarbonization trends in the chemical industry along with drivers such as regulatory push, consumer buying trends, sustainability goals of chemical companies, and recycling technologies. Global Head of Value Chains & Regional Director Corporations Guest Speakers: Rowan Adams, Executive Vice President, Corporate Affairs, and Anna Pierce, Director of Sustainability at Tate & Lyle. Tash is global environment lead for dentsu international, the global marketing and advertising services agency. [i] Sources: IPCC, UN, The Guardian, Our World in Data, CAMELOT | Note: The 7% are the total GHG emissions of Industry-Chemicals and Energy-Chemicals plus the respective shares of unallocated energy emissions and caused by energy production. Under the strategic direction of the SBTis Steering Committee, Emma is leading the development of the Corporate Net-Zero Standard. Four additional chapters including reporting principles and guidance on Scope 3.1 calculation on corporate level will be published in November 2022. He then worked in Treasury, and the Department for International Development, leading economic work in Nepal and Nigeria, and as a senior civil servant Economic, Private Sector and International Financial Institutions Departments. the responsibility of those emissions away from the large chemical companies. We can help you work through your business context and take Scope 3 from simply a reporting requirement to a real, useful tool to support your decarbonisation journey. Tackling upstream scope 3 carbon emissions poses problems of calculation and influence. Most companies' climate impact lies in their supply chains. A Definition. Where . Global Head of Sustainability - Consumer & Manufacturing With key climate milestones already set for 2030 and 2050, a growing climate focus from investors and customers, waiting is not an option. I consent to the use of following cookies: Necessary cookies help make a website usable by enabling basic functions like page navigation and access to secure areas of the website. handling. The upcoming SBTi sector-specific guidance should provide some support on the reporting challenges, but businesses should not simply wait. August 9, 2022. The data in this publication has undergone a quality assurance process and adjustments to reported ANZSIC . Reducing emissions by simply shifting who owns what does not have a real-world impact: it does not genuinely show the full impact of the products youre helping to create. Chemical supply chains for a better world. Abstract The use of materials, goods, and services is associated with greenhouse gas emissions. The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes. Some businesses will take raw material from a customer, refine or process it and provide back to the customer. Matteo has joined Lloyds Banking Group from Vodafone UK, where he supported the business in setting the roadmap to deliver the 2025 sustainability targets, whilst reducing the company energy cost base. UK & Worldwide Regional Lead - Commit to Action Programme Based on research and surveys of industry, academic, and independent specialists, Deloitte compiled a portfolio of 15 abatement technologies that can help address most industry Scope 1. Initial Scope 3 Screening Identification of relevant scope 3 categories. Making a world of difference, to a world of people. These indirect emissions often represent the largest portion of your corporate footprint; in some cases, they account for as much as 90% of an organization's total emissions. Why should an organisation measure its Scope 3 emissions? Since joining the company in 2021, Isobel has accelerated Owen Mumfords sustainable product design approach by utilising a holistic approach incorporating systemic research, rationalised concept development, and a clear understanding of user experience and needs to present innovations that meet customer needs and enable a circular economy. Buy ADI reports and data from our subscription services and multi-client research.

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