Agree on targets and evaluate
Once the reporting company has calculated its Scope 3 emissions footprint and reduction potential , it should create a specific plan to achieve them . While setting their targets , companies must balance ‘ ambitious ’ and ‘ achievable ’ and need to be transparent about their underlying assumptions . Additionally , companies should set both shortterm and long-term targets . The former allows them to continuously monitor progress and incremental reductions as well as alert when adjustments due to changed circumstances are required .
Monitoring progress requires a system that can provide frequent Scope 3 emission calculations , enabling companies to detect deviations and quickly course correct . It can help to encourage such data collection efforts within the company by showing immediate results to all managers involved .
The transition to a low-carbon economy requires companies to review their entire value chain . For some companies , e . g ., re-sellers , the only way to reduce Scope 3 emissions is to have their suppliers reduce theirs . Addressing Scope 3 emissions is a significant undertaking . The right prioritization , however , will allow enterprises to achieve it in a reasonable timeframe , thus help create a more resilient supply chain . ■
For a list of the sources used in this article , please contact the editor .
Anuj Saush www . conference-board . org
Anuj Saush is Center Leader , European Governance & Sustainability Center at The Conference Board , the memberdriven think tank that delivers trusted insights for what ’ s ahead . Founded in 1916 , it is a non-partisan , not-for-profit entity holding 501 ( c ) ( 3 ) tax-exempt status in the United States . scw-mag . com 15