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. Design Engineer (Sustainable Product Development) [ii] Those arising from the supply chain. In the future, this will allow consumers and the wider market to directly compare and assess the climate impact of products. 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. The retailer will have . To ensure a harmonised, standardised and widespread use, TfS has therefore decided to publish the Guideline as open source. Reaching net-zero: Carbon offsetting Biological or Technological? The Scope 3 emissions from the Chemical sector are significant and need to be addressed. Olwen Smith is the UK and Worldwide Regional Lead for CDPs Commit to Action Programme and is also part of the SBTis Corporate Engagement team. The retailer will rent premises on the high street to sell clothes. three scopes. 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. 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. We operate globally from offices across the UK, US, Netherlands and Nordics. and 2 and Scope 3 emissions in 2019 reported by BASF, Dow, and Solvay. Together for sustainability. Registers a unique ID that is used to generate statistical data on how the visitor uses the website. National Grid, Purchased Goods & Services & Capital Goods Abstract The use of materials, goods, and services is associated with greenhouse gas emissions. 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. Whilst Scope 3 impact could (and should) be reported on for SBTs or net zero, your reporting does not need to end there. However, a new Supplier Carbon Footprint (SCF) tool, produced by ICIS, chemical data specialists, in partnership with Carbon Minds, environmental impact . Four additional chapters including reporting principles and guidance on Scope 3.1 calculation on corporate level will be published in November 2022. Innovation in chemical production is crucial for the industry to satisfy demanding and environmentally conscious consumers. Figure out which scope 3 emissions you have to measure and report on, from both upstream and downstream of your company's activities, because not all of them will be relevant to your business. 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. 1. 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. A Scope 3 footprint of this magnitude is required to be included if businesses choose to set Science Based Targets (SBTs), and increasingly net zero commitments. Why you should innovate, collaborate and educate to find success with reusable packaging, The Net Zero Asset Owner Alliance (NZAOA). He has authored or co-authored dozens of peer-reviewed journal articles and reports, including Technologies and policies to decarbonize global industry: Review and assessment of mitigation drivers through 2070. Matteo is aSenior SustainabilityManager with an Engineering background, an MSc in Renewable Energy and Energy and Sustainability Management experience in some of the largest British energy consumers. Used to send data to Google Analytics about the visitor's device and behaviour. The chemical industry is both one of the largest consumers of energy globally and a hard-to-abate sector. A Scope 3 inventory that is generic and vague helps no one. products itself than the average end-user for whom recycling or alternative materials most of which come from processing, selling, and end-of-life treatment of sold Earlier in her career, she held account management roles at a tech company and worked at a Berlin-based social impact start-up. Description of the company . A sector scoping paper in December 2020 recommended improving the resources available to Chemical businesses, including addressing the sectors high degree of fossil fuel feedstock use, heterogeneity, and prevalence of the intermediate product trade. This limited supply chain within the sector reduces competition and could reduce the opportunities the business has to cut the embodied carbon of their products. The infographic below is prepared by Global Efficiency Intelligence, LLC to summarize some key information on energy use and emissions in the chemical industry. PA Consulting, Dr Warren Bowden Science Based Targets initiative (SBTi), Business Travel 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. Thus, to reduce carbon emissions, chemical companies need to address purchased materials that account for almost half of scope 3 emissions. There is a translation that needs to happen break categories into sub-groups that actually align to your business. Aggregating this data shows that on average, scope 3 emissions contribute to more than 95% of total emissions. 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. To view or add a comment, sign in We believe in the power of ingenuity to build a positive human future in a technology-driven world. These emissions are usually split into the following categories: In most reporting frameworks, it is not mandatory to report Scope 3 emissions. Scope 3 emissions span 15 mutually exclusive indirect greenhouse gas (GHG) emission sub-categories: . Fuel and Energy-Related Activities Dentsu International, Olwen Smith David Yankovitz, who leads the chemical group at the consulting firm Deloitte, says scope 3 emissions are on the minds of the industry's sustainability executives, but few firms have detailed . 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. Participants heard from climate specialists and business leaders as they shared best practices for identifying, measuring, and reducing their Scope 3 emissions. Peter Duff is the chairperson of Shoosmiths. Making a world of difference, to a world of people. Finally, Scope 3 emissions are all indirect emissions 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. Whilst this means that there are only 15 categories instead of hundreds, it can limit your ability to tell the true story of your business. Where the mining industry stands. TfS worked alongside global NGOs, corporate sustainability experts, chemical industry experts and organisations such as the World Economic Forum (WEF), and the World Business Council for Sustainable Development (WBCSD) to ensure global best practice for emissions accounting. These so-called scope 3 emissions make a considerable contribution to the climate footprints of compa. The Guideline has been published as open source with the ambition that it may be used in other industries too. 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 . Alexis has 5 years experience in reporting carbon emissions and setting net zero strategies, with extensive knowledge of the Greenhouse Gas Protocol, Scope 3 and carbon offsetting. 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. Your email address will not be published. According to GHG protocol, scope 3 emissions are separated into 15 categories. 1 For financial institutions, other ways include the following (Economist, 2020): one, gauging . By 2050, the LANXESS Group wants both its upstream and downstream supply chains to be carbon neutral. There are things that can be done right now to improve the value of your Scope 3 reporting. Throughout his career, Peter has dealt with clients at board level and advising directors on the best tactics to achieve their strategic aims. 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. recycling in the upcoming blogs. Scope 2: Indirect Emissions from Energy. Scope 3 includes the indirect emissions resulting from the consumption and use of the Company's products. While chemicals are fundamental to modern society and innovative breakthroughs,. LEARN MORE>>>. Browse our renowned blog, learn from our videos, and access the ADI newsletter archive for insights on oil & gas, energy, and chemicals. citric acid production. For general information about scope 3 accounting, see Scope 3 Calculation Guidance from Greenhouse Gas Protocol. However, estimating the PCF for citric acid has many challenges, from comparing biobased materials to calculating allocation schemes and varying uses of electricity. 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. Embrace New Technologies What is the Scope 3 Standard? Landsec, Karl Desai The $4.6 trillion chemical industry is integral to sectors ranging from aerospace to automotive and is responsible for a high level of global emissions, 77% of which are in Scope 3 (i.e.. 1. Nate holds a PhD from the Energy and Resources Group at the University of California, Berkeley, a masters degree from Stanford University, and a bachelors degree from Cornell University. Senior Manager, Net-Zero To help companies quantify and reduce their greenhouse gas Scope 3. It is estimated to be responsible for 7% of the global Greenhouse Gas (GHG) emissions[i], 77% of which are in Scope 3[ii]. For the SME Climate Hub, a core initiative of the Coalition, Lydia strengthens the initiatives collaboration with multinational companies and helps to develop the tools that small and medium sized businesses need to take climate action. This will help you determine where to focus your carbon reduction efforts, and help to identify the individual levers you can pull to influence these key supplier groups. Global CO 2 Emissions in 2010 This impact tells one side of your story. Chemical supply chains for a better world. In the chemicals industry, at least 75 percent of emissions come from scope 3. 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. 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. What is Scope 3 Carbon Accounting? Align Scope 3 emissions reduction with an existing net zero roadmap. Olwen was previously part of CDPs Europe Corporate Engagement team, leading CDPs disclosure engagement in Ireland and Central & Eastern Europe. To view or add a comment, sign in. "Across all of the categories, transportation is usually a top three contributor to total emissions, representing about 10-15%," states Brett. For most companies setting net-zero targets, the chief procurement officer may be the most important person in the room. Tesco, Emma Watson 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. Stephanie Chang is responsible for driving the integration of sustainability factors across the investment teams at Schroders and has successfully delivered on the firms goal of full integration across the firms managed assets in 2020. The Melbourne-based miner's scope 3 emissions were 402.5MTCO2E in the 12 months to 30 June, with iron ore making up an estimated 205.6 to 322.6 million tonnes contribution to that total. Houston, TX 77494, +1 (281) 506-8234 We have supported business of different scale and product size across the Chemical sector such as Croda, Elementis and Synthomer, to tailor Scope 3 to them. 23 June, 10:00-11:30 BST, Sonya Bhonsle To support companies to reduce carbon emissions across their value chain, the UN Global Compact Network UK hosted a series of topical webinars exploring how companies can tackle Scope 3 emissions categories as defined by the GHG Protocol. 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. Calculating the carbon footprint of products provides the best product-level information for identification, tracking and reducing scope 3 GHG emissions in the industry. Tackling upstream scope 3 carbon emissions poses problems of calculation and influence. According to analysis of CDP responses in 2020, 77% of the Chemical industrys emissions are in Scope 3. She continues to evolve the firms approach to ESG integration to ensure Schroders approach remains robust and market leading. Alexis joined NatWest in 2021 as the Climate Reporting Manager for the Groups own operations. Used by Google Analytics to throttle request rate. With the ability to effectively calculate PCFs and more accurately measure Scope 3 emissions, the sector will be able to achieve tremendous climate ambitions whilst reducing exposure to climate risk.. As Scope 3 emissions usually account for more than 70 percent of a business carbon footprint, it is crucial that companies tackle Scope 3 emissions to meet the aims of the Paris Agreement and limit global warming to 1.5C. Adding 18 billion of value to the UK economy, the Chemical industry is fundamental to modern society, underpinning global manufacturing supply chains, providing materials and products into a range of sectors from aerospace to pharmaceuticals, construction to consumer goods. It harmonizes PCF calculation approaches across the industry and is applicable to the vast majority of chemical products. Sound a good fix? positively engage with employees to reduce emissions from business travel and employee commuting. It involves thousands of processes, products and specific technologies. 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. including both upstream and downstream emissions. The website cannot function properly without these cookies. 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Suite 1704 Scope 3 is an optional reporting category that allows for the treatment of all other indirect emissions. A large portion of carbon in feedstocks that are used land in end-products but the sector itself contributes less than 16% of the total industrial emissions. Using 2021 data, we calculated the proportion of Scope 3 emissions to total emissions for the top 6 global mining companies. The solution can store emission data for any scope 3 category. Read our Privacy and Cookies Policy here, Shoosmiths LLP is a leading UK law firm across 13 locations across England, Scotland and Northern Ireland. The firm also offers legal services for individuals and their families. ADI is a boutique consulting firm based in Houston, Texas and specializing in oil & gas, energy, chemicals, and industrials. The last decade has been one of increasing corporate climate action and commitments; the next decade has to be one delivering against those commitments. Isobel is responsible for establishing and maintaining the sustainability strategy across Owen Mumfords research and development division and communicating this strategy into all other areas of the business. The remaining 99 percent are scope 3 emissions, including 76 percent from supplier manufacturing and 14 percent from consumer product use. There are numerous benefits associated with measuring and reducing Scope 3 emissions. These emissions can come from a variety of sources, such as the production and transportation of materials, waste disposal, employee commuting, and the use of company-owned vehicles. assess where the emission hotspots are in their value chain; identify resource and energy risks in their supply chain; identify which suppliers are leaders and which are laggards in terms of their sustainability performance; identify energy efficiency and cost reduction opportunities in their value chain; engage suppliers and assist them to implement sustainability initiatives; improve the energy efficiency of their products; and. Emma is based in London. 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. While at Oxfam, he was on the board of the Jubilee 2000 Debt Relief campaign. This is a challenge. 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. Scope 3 emissions take place within both the upstream and downstream value chain of a business. The Guideline will be applicable across industries; it will be open source and useful for other industries using chemical materials. 2 . Emma has also worked at environmental consultancy, RPS Group, and gained an MSc in Carbon Management and BSc with Honours in Environmental Science, both from the University of Edinburgh. Scope 3 emission sources include emissions both upstream and downstream of the organization's activities. Step 2. 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. Scope 1 ChemicalsScope 3 emissions are all non-energy-related GHG emissions and aerosols that fall under the Montreal Protocol (UNEP MP, 2021 ). An innovation and transformation consultancy, we are 3,300 specialists inconsumer and manufacturing, defence and security, energy andutilities, financial services, governmentand public services, health and lifesciences, and transport. Sustainability Director 17 March, 10:00-11:00 GMT, Alexis Munro The emissions specifically related to purchases made from suppliers, fall into Scope 3: Category 1 - Purchased Goods and Services. The top five subdivisions are electricity supply, coal mining, primary metal and metal product manufacturing, oil and gas extraction and metal ore mining. The Greenhouse Gas Protocol Corporate Standard classifies a company's GHG emissions into three 'scopes': There are numerous benefits associated with measuring and reducing Scope 3 emissions. Previously, Emma worked at Carbon Intelligence where she led delivery of strategic services. Furthermore, they enable companies and suppliers to work on the reduction of their emissions, which ultimately will improve the industrys carbon footprint. Image credit: LANXESS. How Can Scope 3 Emissions Be Reduced? More details about these gases are given in Chap. Global Environment Strategy Lead For example, BASF and Mitsui ADI Analytics is a boutique consulting and advisory firm specializing in oil and gas, energy, and chemicals. These emissions physically occur at the facility where electricity, steam, and cooling or heating are generated. Nestle, Stephanie Chang August 9, 2022. The decarbonisation of industry has come under increased scrutiny in recent months and is a crucial part of The Governments Clean Growth Strategy for meeting the UKs legally binding Carbon Budgets. Note . The technical storage or access that is used exclusively for statistical purposes. document.getElementById( "ak_js_4" ).setAttribute( "value", ( new Date() ).getTime() ); Talk to us about your sustainability challenges. Failure to report on Scope 3 will create an inaccurate picture of your companys emissions profile and susceptibility to climate change risks. Schroders, Nate Aden Speak to one of our experts. Please complete the form to the right to view these informative webinars >>>, We use cookies to improve your experience on our website some are strictly necessary to operate our site, and others are optional. electricity, heat, steam (scope 2). 2022 Reducing Scope 3 Emissions - Webinar Series, Purchased Goods & Services & Capital Goods, Global Head of Value Chains & Regional Director Corporations, UK & Worldwide Regional Lead - Commit to Action Programme, Design Engineer (Sustainable Product Development), Global Head of Sustainability - Consumer & Manufacturing, 2020 Reducing Scope 3 Emissions - Webinar Series. Regulatory and government agencies are introducing various Scope 3 emissions are a consequence of the activities of the company, but occur from sources not owned or controlled by the company. UK & Worldwide Regional Lead - Commit to Action Programme If you have any questions or would like more information on our privacy policy and your rights, please contact info@tfs-initiative.com. Exhibit 1. Capital goods 3. The GHG Protocol guidance cannot capture the complexity of each industry and there is limited sector-specific guidance available. Owen Mumford Ltd, Rodrigo Barrios Scope 3 includes all other indirect emissions that occur in a company's value chain. 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. Under the strategic direction of the SBTis Steering Committee, Emma is leading the development of the Corporate Net-Zero Standard. The Scope 3 Standard provides a methodology that can be used to account for and report emissions from companies of all sectors, globally. Owen Mumford is a major medical device manufacturer that develops pioneering medical devices for its own Owen Mumford brand and custom device solutions for the worlds major pharmaceutical and diagnostic companies. in lowering down of not only Scope 1 and 2 emissions from the chemical In short, Scope 3 emissions have largely been neglected until now. 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). (GHG) emissions, the GHG Protocol Corporate Standard classifies emissions into companies but also optimize Scope 3 emissions. post-consumer waste in an attempt to curb Scope 3 emissions that arise from waste Companies should calculate emissions from all of their operations for Scope 1 and 2 categories. This is also known as your carbon footprint. Responsible Business Manager Descriptive information . Scope 3 emissions are dominant in their overall emissions output. The data in this publication has undergone a quality assurance process and adjustments to reported ANZSIC . "Calculating Scope 3 emissions is particularly challenging in the chemical industry, due to the complexity of chemical production. Global Head of Sustainability - Consumer & Manufacturing SBTi, Mark Lancelott All Rights Reserved, 440 Cobia Drive 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. 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. Long-term data show that the European Unioun (EU) chemicals industry, including pharmaceuticals, significantly reduced its greenhouse gas (GHG) emissions on a consistent basis from 330.4 million tonnes of CO 2 equivalents in 1990 to 165.8 million tonnes in 2010.. Anthropological Sources of Greenhouse Gas Emissions. Head of Distribution Zone Europe By creating a chemical industry-specific guideline, TfS is empowering suppliers and corporations to easily produce quality carbon footprint data for the first time. What are scope three emissions? Montreal Protocol gases are mainly propellants, foams, or liquids and gases used for cooling and refrigeration that are produced by the chemical industry. Alexis has a masters degree in Climate Change Science and Policy from the University of Bristol and is a chartered environmentalist through IEMA. Tash represents dentsu international on the DIMPACT forum an innovative industry initiative calculating carbon emissions for digital media content for the first time. A Scope 3 emission is any indirect emission that results from activities related to a company or organization. Consulting Director The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user. Preference cookies enable a website to remember information that changes the way the website behaves or looks, like your preferred language or the region that you are in. The new PCF bridges this gap, offering a harmonized way to generate and share information on the emissions arising from chemical supply chains.
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