Your role in the supply chain: the crackdown on Scope 3 Emissions

The definition of a Scope 3 emission is: “The indirect greenhouse gases released across a business’s entire supply chain, both before and after direct operations.” But what does that actually mean?

Scope 3 covers all of the greenhouse gases produced in the creation of the raw materials a company buys (like feed or fertiliser), all the way to the emissions generated when products are distributed, used, and disposed of.

This means businesses must take a broader look at every link in their supply chain to understand their full environmental impact.

Why is Scope 3 reporting important now?

The UK government is currently seeking evidence on how to enhance reporting of Scope 3 emissions. This initiative signals a move towards stricter regulations and potential sanctions for businesses that do not adequately manage their supply chain emissions. This increased focus on accountability means companies will need to be proactive in tracking and mitigating their indirect emissions.

Beyond regulatory compliance, understanding Scope 3 emissions provides significant business advantages. Conducting thorough supply chain research can help identify areas for waste reduction, efficiency improvements, and cost savings. Additionally, consumers are increasingly prioritising environmentally responsible businesses. By demonstrating a strong commitment to sustainability, rural businesses and estates can strengthen their reputation and build trust with consumers.

The challenges of measuring scope 3 emissions

Measuring Scope 3 emissions is often a complex and time-consuming process. The Greenhouse Gas Protocol has produced an extensive 182-page document outlining the methodologies for these calculations, including 22 pages of formulae. This complexity can make the task seem insurmountable, particularly for businesses without the internal resources to collect and analyse the necessary data.

There are several challenges in measuring Scope 3 emissions, including:

• Data Availability: Many suppliers and partners may not track or disclose their emissions data, making it difficult to obtain accurate figures.

• Supply Chain Complexity: Businesses often have intricate supply chains spanning multiple countries and industries, each with varying levels of environmental impact.

• Calculation Methodologies: Different sectors have different ways of measuring emissions, requiring businesses to adapt methodologies to ensure consistency and accuracy.

How SLE Energy Services Can Help

Navigating the complexities of Scope 3 emissions reporting and reduction can be overwhelming. SLE Energy Services can ease the burden on your business by:

Mapping out the main sources of indirect emissions 

Working with suppliers to analyse their emissions

Monitoring legislation and reporting guidelines 

Providing actionable insights and strategies 

By partnering with SLE Energy Services, you begin the process of streamlining your sustainability efforts, comply with emerging regulations, and position your business as a leader in environmental responsibility.

By comprehensively managing your energy contract for the entirety of its lifecycle, SLE energy services take the burden of energy off your shoulders.

Take Action Today

Understanding and managing Scope 3 emissions is no longer optional; it is an essential part of modern business operations. By taking proactive steps now, you can mitigate risks, improve efficiency, and strengthen your brand’s commitment to sustainability.

Get in touch with SLE Energy Services to learn how we can support, not just your journey toward a more sustainable future, but your energy strategy as a whole.