Because there is a lot of data involved, scope 3 emissions are usually the most challenging to measure and analyse. They show the total carbon footprint of an organisation and the indirect emissions produced by vendors, suppliers, logistics, product consumption, and disposal.
An organisation’s primary sustainability objectives are covered by scope 3 reporting, which also guarantees compliance with international norms and standards and aids in preserving the organisation’s operating license.
An estimated 70 to 90 percent of all carbon emissions can be attributed to scope 3 emissions.
Why it matters?
Trust and Reputation
- Investors, consumers, and stakeholders are expecting businesses to do more than just provide superficial reporting.
- A dedication to effective climate action is demonstrated by transparent Scope 3 disclosure.
Effectiveness and Precision
- Scope 3 data tracking by hand takes a lot of time and is prone to mistakes.
- Automation, supplier system integration, and a decrease in reporting errors are all made possible by data gathering software.
Making Complicated Data Simpler
- Businesses can simplify the entire GHG data collection process by combining disparate supplier and distribution data into a single platform.
Alignment of Regulations
- GHG data collection software ensures alignment with standards like AASB S2, which mandates disclosure of Scope 3 emissions across value chains, aiding Australian businesses in meeting mandatory climate-related financial reporting requirements.
Key Sources of Scope 3 GHG Emissions
- Suppliers: Collect the Supplier data such as raw materials, manufacturing process, and product and service supply chain.
- Distribution: Upstream data collection from suppliers to company and downstream data collection from company to customers.
- Utilities and indirect services: Purchased services, waste management, and business travel. Understanding the distribution between upstream and downstream data is vital to creating a complete picture of your carbon footprint and identifying opportunities to cut emissions across the value chain.
Why ChooseKubeNest?
KubeNest helps you simplify the complexity of Scope 3, align with global standards, and create transparent reports that matter to regulators, investors, and customers.
- Centralised data collection: Scope 3 emissions management is difficult, but KubeNest makes it easy, centralised, and dependable.
- Automation: By doing away with manual spreadsheets, automation lowers human error.
- Data assurance: Using clear, clean, and auditable datasets.
- Custom Dashboards: For all material topics, reporting is centrally located for ease of use.
- Smooth integration: Time savings, lower reporting expenses, and higher sustainability ratings are all made possible via clear ROI.
Scope 3 Emissions Breakdown
Upstream
- Category 1: Purchased Goods and Services
- Category 2: Capital Goods
- Category 3: Fuel and Energy Related Activities
- Category 4: Upstream Transportation and Distribution
- Category 5: Waste Generated in Operations
- Category 6: Business Travel
- Category 7: Employee Commuting
- Category 8: Upstream Leased Assets
Downstream
- Category 9: Downstream Transportation and Distribution
- Category 10: Processing of Sold Products
- Category 11: Use of Sold Products
- Category 12: End-of-Life Treatment of Sold Products
- Category 13: Downstream Leased Assets
- Category 14: Franchises
- Category 15: Investments
