It’s a chain reaction: how to tackle scope 3 emissions

Businesses have been attempting to grapple with the complexities of tackling scope 3 supply chain emissions to deliver on climate targets and achieve net zero. From ensuring regulation-compliant sourcing practices and supply chain partners, to integrating product carbon foot-printing into procurement processes, there is a lot to explore. And with the intricate balance between genuinely reducing emissions and the role of the voluntary carbon market under ever more scrutiny, there are both challenges and opportunities for businesses striving to meet their climate goals.

Despite a lot of unknowns, there are a number of reasons to be positive. In 2023, for example, a significant push came from major financial-sector players endorsing CDP’s call-to-action urging companies to set rigorous emission reduction targets aligned with Science Based Targets initiative targets. The question is – as always – how quickly are companies able to adapt their practices? 

There are some significant and demanding pieces of legislation coming into force and corporate leaders are under pressure to regularly stay up-to-date and remain compliant. Among the biggest looming deadline is the full implementation of the EU’s deforestation regulation, known as EUDR, in December 2024. 

To better understand EUDR, what it means in practice and answer some of the biggest questions, Innovation Forum hosted a webinar with Emanuele Pitto from the European Commission, Olivier Tichit from palm oil business Musim Mas, Tessa Meulensteen from IDH and moderator Ian Welsh. They discussed the risks and opportunities from the regulation long-term. To read the full summary article and, watch or listen to the recording, click here.

Raviv Turner from the Nature Tech Collective and Taskforce on Nature-related Financial Disclosures recently highlighted in a podcast interview the current transition from carbon-focused to nature-based disclosures. This represents a significant shift in corporate sustainability reporting. The need to set viable net zero and scope 3 emissions strategies is becoming more apparent.

So, what does a good strategy look like? And how can businesses set out their own realistic approached? In conversation with Ian Welsh, Saif Hameed from Altruistiq shared the challenges for companies tackling their scope 3 supply chain emissions and guidance on how to initiate supplier engagement and common mistakes to avoid. You can listen the interview here.

Businesses are setting ambitious plans to reduce emissions to net zero. The challenge now is to set practical and realistic strategies that will drive progress to meet the commitments. A recent article written by Tom Idle highlights Sime Darby Plantation’s method of establishing targets and reduction pathways, following the Science Based Targets initiative’s framework. Click here to read the full article.

There has been ongoing debate over the voluntary carbon market’s role in corporate decarbonisation. However, with informed decisions and guidance, carbon markets can offer potential for business to deliver meaningful climate mitigation. In 2023, Ian Welsh was in Cambodia to discover the impacts and benefits of carbon projects for people on the ground. During his trip, Ian spoke with various stakeholders:

     Conversation with farmers Kong Bunchhean and Uk Troap

     Conversation with the now former minister of environment of Cambodia,
     Say Samal

     Conversation with Charles Bedford from Carbon Growth Partners

Can regenerative agriculture help?

Establishing a strategy to motivate downstream suppliers and gain traction on regenerative agriculture can be part of the solution in tackling scope 3 emissions. There are various benefits to regenerative agricultural practices when done right, such as optimizing land use and build farmer resilience.

Yara International talks about the importance of regenerative transition in agriculture and how it can help addressing scope 3 emissions. You can watch the full video here.

There is no universal solution for addressing scope 3 emissions and initiating large-scale transformation across their entire value chains. Clearly, brands and other stakeholders such as NGOs, governments and industry leaders will benefit from an exchange of ideas and collectively pulling in efforts to develop resilient and sustainable business practices.