Last chapter in our series devoted to carbon balance: scope 3.
This category lists all indirect greenhouse gas (GHG) emissions produced by an organization's activities.

Generated upstream and downstream of the company, these carbon emissions are the most difficult to measure and control. However, they represent 80 to 90% of a company's total GHG emissions. It is therefore urgent to reduce them in order to meet the climate challenge and reach the objective set by the Paris Agreement.

To reduce your company's carbon emissions and limit the rise in global temperature to 1.5°C by 2050, solutions exist.

Overview.

What is Scope 3 of the carbon balance?

In the carbon balance, scope 3 measures quantities of greenhouse gases emitted indirectly by the organization, with the exception of indirect emissions related to energy consumption. The latter fall within the scope of the Scope 2.

Greenhouse gases - Les Cahiers du Développement Durable

Scope 3 is the the broadest carbon emissions perimeter and the most complex to assess. It concerns a multitude of actors throughout the value chain of goods and services produced by the company.

In total, 15 broadcast stations are identified, including:

• Extraction and processing raw materials.
• Transport up and down stream from the company.
• The activity of vendors and the whole of the supply chain.
• THEend use by customers of products and services and their end of life.
• The waste treatment generated by the activities of the company.
• Acquisition or rental equipment, materials and movable and immovable property necessary for the activities of the company.
• Les displacements home and work professionals.
• Les investments with the consideration of GHG emissions produced by third parties through the acquisition of financial securities.
• Les franchises.
• The Leasing, taking into account carbon emissions from the exploitation of assets owned by the company.

Good to know: since Decree No. 22-982 of 1^Er July 2022, scope 3 is included in the greenhouse gas emissions report (BEGES) mandatory for companies with more than 500 employees.

Why carry out your carbon footprint and reduce your greenhouse gas emissions scope 3?

• Limit thecarbon footprint and the environmental impact of the company.
• Build and implement an exemplary CSR (corporate social responsibility) policy.
• Guarantee compliance with environmental regulations.
• Reassure customers, employees, investors and other partners, who are increasingly demanding in terms of environment and health.
• Convey a positive image of a sustainable company committed to the energy transition.
• Save energy and lower the energy bill.

What are the methods for measuring Scope 3 GHG emissions?

Calculating carbon footprint 3 greenhouse gas emissions requires combining several methods and information sources. While it is impossible to know exactly what indirect carbon emissions are, the challenge is to obtain the most accurate and exhaustive estimate possible.

Identify carbon emissions from stakeholders

Indirect carbon emissions are generated by third parties in the company. La cooperation with suppliers, customers and other partners is essential for collecting the most accurate and complete data.

Sending standardized questionnaires, audits, site visits are all tools available to businesses to gather information on carbon emissions from stakeholders. Beforehand, the A comprehensive mapping of activities and suppliers must be drawn up so as not to forget any link in the value chain.

Use sectoral emission factors

In the absence of accurate data on the greenhouse gas emissions of an activity, product, service, or material, businesses can Do the calculation themselves.

To do this, they must know the quantity and the sectoral emission factor, then apply the Next formula :

Quantity of GHG emissions = quantity consumed (expressed in the unit of the product) x physical emission factor (quantity of CO₂ issued by a unit).

For intangible services, the monetary emission factor applies to:

Quantity of GHG emissions = price of the product or service x monetary emission factor (expressed in KGCo₂e per k€ (excl. VAT)

Sectoral emission factors are available in Imprint Base^® Of theADEME, or in international sectoral databases such as the Green Gas Protocol (GHG Protocol), the Carbon Disclosure Project (CDP), or the Science-Based Targets Initiative (SBTi).

Use Life Cycle Assessment (LCA)

Life Cycle Assessment (LCA) measures the environmental impact of a product or service throughout its life cycle. The calculation includes the extraction, processing, and transportation of raw materials, product manufacturing, distribution, use, and end-of-life management.

The company can rely on existing software, databases and studies to estimate greenhouse gas emissions generated by products manufactured or services provided.

Model

The company can also use specialized software and tools based on economic and sectoral models. To calculate its indirect carbon emissions, it can, for example, reduce to its scale the greenhouse gas emissions observed at the national or sectoral level.

What strategies to reduce Scope 3 carbon emissions?

Scope 3 greenhouse gas emissions represent up to 80% to 90% of an organization's carbon footprint. Scope 3 identifies opportunities to reduce them and deploying sustainable value chain management. The company can act directly on certain emission stations. Other actions require close cooperation with its stakeholders, in particular suppliers.

Reducing employee travel

Travel is a major source of carbon emissions in scope 3 on which the company can act directly. There are multiple solutions to reduce the carbon footprint of transport:

• Encourage carpooling, collective mobility and soft mobility for home-work trips: French companies have incentive tools such as the sustainable mobility package (FMD) and the partial coverage of public transport subscriptions.
• Limiting trips between home and work by establishing a portion of teleworking.
• Reduce business travel by promoting remote meetings by videoconference.
• Investing in a fleet of electric business vehicles for more carbon-free mobility.

Favoring low-carbon transport

Upstream and downstream transport weighs heavily on a company's carbon footprint. This weight can be reduced via a more sustainable transport policy :

• Choose modes of transport with lower GHG emissions such as rail or sea transport.
• Prefer heavy transport running at BioNGV, at biogas or at thehydrogen.
• Reducing distances of transport and optimize itineraries.

Optimizing the supply chain

Greenhouse gas emissions throughout the supply chain are not directly dependent on the business. But it can limit them by deploying a sustainable purchasing policy:

• Choosing sustainable raw materials and materials, recycled or reused to reduce carbon emissions related to extraction and production.
• Buy local by prioritizing geographic proximity with suppliers to reduce carbon emissions related to transport.
• Building common strategies of reduction of greenhouse gases in partnership with suppliers and subject their choice to compliance with the achievement of numerical objectives.
• Include environmental criteria in supplier selection processes and regularly assess their environmental impact.

Reducing waste

Another greenhouse gas emission item on which the company can act directly: the reduction of waste through promotion of the circular economy :

• Minimize waste at the source right from the design of the products.
• Encourage reuse and recycling materials and products at the end of their life.
• Eco-design durable, repairable and modular products.
• Encourage selective sorting and composting.

Scope 3 of the carbon footprint measures the company's indirect greenhouse gas emissions.

Do you want to significantly control the environmental impact of your company? If the spectrum is broad and the calculation complex, it is imperative that you reduce scope 3 carbon emissions.

You can take action through the implementation of sustainable and innovative practices and close partnerships with the actors in your value chain. Reducing carbon emissions is also an opportunity for you to save energy.

SirEnergies supports you in meeting this major challenge. Affirm your commitment to the fight against climate change and contact our experts to build a tailor-made energy strategy.