The solution can store emission data for any scope 3 category. As Supply Chains Manager at the We Mean Business Coalition, Lydia works across net zero climate action and supply chains strategy. In the chemicals industry, at least 75 percent of emissions come from scope 3. The infographic below is prepared by Global Efficiency Intelligence, LLC to summarize some key information on energy use and emissions in the chemical industry. But chemical supply chains are exceptionally complex and obtaining accurate PCF data for scope 3.1 reporting has been near impossible. By 2050, the LANXESS Group wants both its upstream and downstream supply chains to be carbon neutral. Obviously an issue that needed urgent tackling. Some foreword thinking . 2 The US chemical industry's GHG footprint is itself over 200 million metric tons of carbon dioxide equivalent (MtCO2e) per annum. EU in 2010. If you predominantly rely on toll materials, or you have a limited number of flagship products with clear end applications, taking a value chain view can often make most sense. Upstream transportation and distribution 5. 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. Categories 1 and 2: Purchased goods and services and capital goods Included in this are indirect emissions, particularly those from acquired raw materials . Considering the environmental benefits realised from your products in use tells the other. Senior Manager, Net-Zero At BASF, we create chemistry for a sustainable future . As discussed above, Scope 3 emissions are indirect emissions, Scope 3 emissions are varied, complex and businesses often have little visibility over where or why these emissions are arising. UK & Worldwide Regional Lead - Commit to Action Programme 11. [i] Sources: IPCC, UN, The Guardian, Our World in Data, CAMELOT | Note: The 7% are the total GHG emissions of Industry-Chemicals and Energy-Chemicals plus the respective shares of unallocated energy emissions and caused by energy production. Based on research and surveys of industry, academic, and independent specialists, Deloitte compiled a portfolio of 15 abatement technologies that can help address most industry Scope 1. Scope 1 and 2 emissions together account for 36%. 17 March, 10:00-11:00 GMT, Alexis Munro Embrace New Technologies Scope 1 covers direct emissions from owned or controlled sources. positively engage with employees to reduce emissions from business travel and employee commuting. SBTi, Mark Lancelott These emissions physically occur at the facility where electricity, steam, and cooling or heating are generated. This field is for validation purposes and should be left unchanged. Here's what each covers: Near-term science-based targets must be met within a 5- to 10-year period and must address 95% of Scope 1 and 2 emissions. 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. 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. purchased electricity. The technical storage or access that is used exclusively for statistical purposes. Matteo has joined Lloyds Banking Group from Vodafone UK, where he supported the business in setting the roadmap to deliver the 2025 sustainability targets, whilst reducing the company energy cost base. For most companies setting net-zero targets, the chief procurement officer may be the most important person in the room. 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. Some businesses will take raw material from a customer, refine or process it and provide back to the customer. Tash is global environment lead for dentsu international, the global marketing and advertising services agency. A key priority was the mobilisation of private sector investment into developing countries, with a focus on impact, climate, and achievement of the Sustainable Development Goals. Houston, TX 77494, +1 (281) 506-8234 Descriptive information Company response Company name . Tackling upstream scope 3 carbon emissions poses problems of calculation and influence. Scope 3 emissions fall within 15 categories, though not every category will be relevant to all organizations. Senior Advisor - Advancing Net Zero 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. Nate has more than 15 years of experience working on industry, trade, energy, and climate in Asia, the U.S., and Europe. The chemical industry, however, also emits greater than two gigatons of greenhouse gases per annum globally. Scope 1 emissions are direct emissions from owned or controlled Contact us to learn more. To view or add a comment, sign in. Participants heard from climate specialists and business leaders as they shared best practices for identifying, measuring, and reducing their Scope 3 emissions. This is much higher than both Scope 1 (emissions directly generated by . Scope 3 emissions cover a broad range of activities across Cisco's supply chain, business operations, products, and solutions. 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. Simply moving emissions out of your boundary and claiming reductions could open businesses up to claims of greenwashing and present a real reputational risk. Step 2. PA Consulting, Dr Warren Bowden Thus, in a way, Scope 2 emissions are a special kind of Scope 3 emissions, but they are counted separately due to historical reasons. Scope 2: Indirect Emissions from Energy. We believe in the power of ingenuity to build a positive human future in a technology-driven world. Registered in England no. CDP, Isobel Filipova Shoosmiths has near-term science-based emissions reduction targets validated by the Science Based Targets initiative and Peter is a member of Business In the Communitys Climate Action Leadership Team. Together for sustainability. Reducing carbon emissions is, however, a complicated task. The new PCF bridges this gap, offering a harmonized way to generate and share information on the emissions arising from chemical supply chains. We shall discuss some of the taxes and incentives to promote How Can Scope 3 Emissions Be Reduced? From 2004 to 2013, Stephanie worked at HSBC across the corporate banking and sustainability teams, including latterly as the deputy Global Head of Sustainability Risk. Scope 3 emissions, also referred to as value chain emissions, often represent the majority of an organization's total GHG emissions. Scope 1 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. The chemical industry's Scope 3 emissions - those indirectly released upstream and downstream in a company's value chain - represent the majority of all emissions at 64% because of its dependence on oil and gas extraction, as well as carbon-dense products such as plastics. 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. Carbon accounting is an accounting method to count, inventory, track, and report your organization's greenhouse gas (GHG) emissions. Guest Speaker: Jonathan Dunn, Head of International Policy and Planning at Anglo American. Isobel believes in a holistic approach to sustainability that reviews the entire ecosystem to identify opportunities for positive change, reduced environmental impact and truly innovative solutions. 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. By working collaboratively with cross-industry initiatives, we hope to build a more sustainable future.. 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. Thus, to reduce carbon emissions, chemical companies need to address purchased materials that account for almost half of scope 3 emissions. Our clients adapt and transform, andtogether we achieve enduring results. 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. PCF calculations provide the best product-level emissions transparency for the identification, tracking and reduction of Scope 3 GHG emissions. Capital goods 3. The Science Based Targets initiative Previously, Emma worked at Carbon Intelligence where she led delivery of strategic services. 1 For financial institutions, other ways include the following (Economist, 2020): one, gauging . The new Guideline comes at a critical time as companies face increasing pressure to reduce emissions in line with the Paris Agreement goals, set corporate sustainability targets and meet growing customer demands for transparency. 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. Nestle, Stephanie Chang Olwen was previously part of CDPs Europe Corporate Engagement team, leading CDPs disclosure engagement in Ireland and Central & Eastern Europe. Companies should calculate emissions from all of their operations for Scope 1 and 2 categories. As strategies, technologies and innovation collide, we create opportunity from complexity. This presents two significant challenges for the food and beverage industry: measurement and emissions reductions. The Chemical sector is recognised as essential in the transition to the low carbon economy, so turning Scope 3 on its head and looking at the downstream carbon benefits could be a more useful narrative for your company. Scottish Leather Group, Transportation and Distribution Descriptive information . Group Sustainability Director The availability of PCF data is limited, and calculations are often not directly comparable. 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. Shoosmiths has near-term science-based emissions reduction targets validated by the Science Based Targets initiative and Peter is a member of Business In the Communitys Climate Action Leadership Team. Efficiency & renewable feasibility studies, Carbon footprints & carbon action programme, Supply chain environmental & social impact assessment, We can help you report on your Scope 3 emissions. Reaching net-zero: Carbon offsetting Biological or Technological? 3 The industry's inherent growth adds to the challenge. Together for Sustainability (TfS) is actively raising CSR standards throughout the chemical industry. Initial Scope 3 Screening Identification of relevant scope 3 categories. Croda, Steven Thompson Buy ADI reports and data from our subscription services and multi-client research. Where . As discussed above, Scope 3 emissions are indirect emissions, most of which come from processing, selling, and end-of-life treatment of sold products of the chemical companies. However, The top five subdivisions are electricity supply, coal mining, primary metal and metal product manufacturing, oil and gas extraction and metal ore mining. Global Head of Sustainability - Consumer & Manufacturing Deciding whether to include toll materials (raw material that the business does not own) in your reporting can be a confusing business. Head of Sustainability & Innovation The program is based on the UN Global Compact and Responsible Care principles and has grown into a global organisation with regional representation in Asia, North and South America. most of which come from processing, selling, and end-of-life treatment of sold Emma is based in London. Emma is based in London. Furthermore, they enable companies and suppliers to work on the reduction of their emissions, which ultimately will improve the industrys carbon footprint. It is accompanied by a suite of user-friendly guidance and tools developed by the GHG Protocol to make Scope 3 accounting more easy and accessible. 1. Industrial sectors, including the Chemical industry, represent nearly a quarter of UK emissions. By measuring Scope 3 emissions, organisations can: While companies are now recognising the importance of addressing their Scope 3 emissions, action in this area must be scaled up to reach true net zero by 2050. Working out who owns emissions in this scenario and how they get allocated is no mean feat. For example, the purchased goods and services category could have sub-groups such as fossil fuel-based raw materials, bio-based raw materials, plant equipment, IT services and so on. Set a net-zero or other decarbonisation targets and support your application to the Science . He works with financial institutions, industry associations, and other stakeholders to help them set Science-Based Targets for GHG emissions reduction. Scope 2 emissions are indirect GHGs released from the energy purchased by an organization. Science Based Targets initiative (SBTi), Business Travel Whilst Scope 3 impact could (and should) be reported on for SBTs or net zero, your reporting does not need to end there. Given the urgent need for a harmonized PCF calculation approach within the chemical industry, the first edition of the PCF Guideline focuses exclusively on prescribing the specifications for supplier PCF calculations. Your email address will not be published. We use cookies to optimise our website and our service. While created initially to meet the needs of chemical corporations and their suppliers, the TfS Guideline can be used as a calculation guideline and drop-in solution in any other global industry using chemical products. World Resources Institute and Finance Sector Lead National Grid, Purchased Goods & Services & Capital Goods Read our Privacy and Cookies Policy here, Shoosmiths LLP is a leading UK law firm across 13 locations across England, Scotland and Northern Ireland. TfS members drew upon expertise in GHG accounting, as well as the chemical supply chain, and the new guideline is the culmination of a workstream dedicated to finding a solution to the Scope 3 problem, implementing meaningful PCF information. including both upstream and downstream emissions. What is Scope 3 Carbon Accounting? 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. It allows the website to recognise your device and store some information about user preferences or past actions. Scope 1 emissions are direct emissions from a company's operations. 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. Abstract The use of materials, goods, and services is associated with greenhouse gas emissions. Most companies' climate impact lies in their supply chains. 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. Our diverse teams of experts combine innovative thinking and breakthrough useof technologies to progress further, faster. According to analysis of CDP responses in 2020, 77% of the Chemical industry's emissions are in Scope 3. LEARN MORE>>>. 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. While significant in emissions impact, the process of sourcing and accurately capturing data for Scope 3 can be a challenge. Scope 3 are value chain emissions that result from use of soled products. Step 1. The PCF Guideline offers clear instructions on calculating Greenhouse Gas (GHG) emissions for specific chemicals production, e.g. But as a user of the energy, the consuming party is still responsible . In fact, scope 3 requires immediate analysis and action. ADI is a boutique consulting firm based in Houston, Texas and specializing in oil & gas, energy, chemicals, and industrials. To view or add a comment, sign in Scope 3 Carbon Emissions: Seeing the Full Picture - MSCI How can investors identify emissions throughout the value chain of companies in their portfolios? emissions via collection programs, recycling, and alternative materials in the The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user. citric acid production. While at Oxfam, he was on the board of the Jubilee 2000 Debt Relief campaign. Prof. Dr. Peter Saling, Director Sustainability methods at BASF and lead of the TfS Guideline Work Package said: Until now, the chemical industry has lacked a common approach to calculating its Product Carbon Footprints. Identify best practices for emissions accounting, with a focus on critical scope 3 categories for the industry. Why should an organisation measure its Scope 3 emissions? More details about these gases are given in Chap. 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. 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. Guest Speaker: Dorothe DHerde, Head of Sustainable Business at Vodafone. This is a challenge. Tracks the visitor across devices and marketing channels. For a successful Scope 3 reporting process, consider the following suggestions: The Scope 3 categories within the GHG Protocol are intentionally broad, they need to work for many different businesses. Head of ESG Integration Using 2021 data, we calculated the proportion of Scope 3 emissions to total emissions for the top 6 global mining companies. According to Green House Gas Protocol, there are 15 categories that Scope 3 emissions can fall into, including capital goods, business travel, and use of sold products. The chemical industry plays a critical role in meeting the global climate targets set by the Paris Agreement. Guest Speakers: Rowan Adams, Executive Vice President, Corporate Affairs, and Anna Pierce, Director of Sustainability at Tate & Lyle. 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. Electricity supply is the subdivision that reports the most scope 1 emissions. This impact tells one side of your story. the responsibility of those emissions away from the large chemical companies. The remaining 99 percent are scope 3 emissions, including 76 percent from supplier manufacturing and 14 percent from consumer product use. BASF . Most recently, she has led the firms net zero commitments in alignment with the Science Based Targets Initiative and the Net Zero Asset Managers Initiative. Calculating the carbon footprint of products provides the best product-level information for identification, tracking and reducing scope 3 GHG emissions in the industry. 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 account for the bulk of overall emissions in the chemical industry but, without detailed reports and access to data about these emissions, companies can neither create realistic emissions targets nor measure improvements. To understand how the chemical industry can develop holistic, sustainable solutions, read the full report . It involves thousands of processes, products and specific technologies. Peter Duff is the chairperson of Shoosmiths. 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. 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. 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. The retailer will have . An example of this is when we buy, use and dispose of products from suppliers. Not really. CDP & Member of SBTis Corporate Engagement Team, Julia Creasey Marketing cookies are used to track visitors across websites. For example, BASF and Mitsui Scope 3 encompasses indirect emissions, including those from supply chain partners in manufacturing and distribution. (GHG) emissions, the GHG Protocol Corporate Standard classifies emissions into This definition to a certain extent shifts the responsibility of those emissions away from the large chemical companies. Speak to one of our experts. As a result, he has developed a keen insight into, and understanding of, people, business culture and motivation which make him ideally placed to chair Shoosmiths partnership. Scope 3 includes emissions from your suppliers as well as consumers of your products and services (upstream and downstream activities). 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. This function allows the website to load faster by pre-loading certain procedures. 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. 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. We explain what these "Scope 3" emissions are, why they are so important and what actions investors can take as they seek to manage resulting risks. 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. An example of this is much higher than both scope 1 emissions direct! The chemical industry can develop holistic, sustainable solutions, read the full report marketing are! 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