#229 From Platform To Proof – How To Tackle Your Scope 3 Emissions

One of the biggest challenges for those looking to achieve Net Zero is tackling scope 3 emissions, which are indirect emissions that typically reside in your supply chain. These can account for up to 70% of your total emissions and can be quite the undertaking to gather the necessary data to be able to complete your calculations needed for carbon verification. In the final episode of the Platform to Proof mini-series, we invite Jay Ruckelshaus, Co-Founder and Head of Policy and Partnerships at Gravity, back onto the podcast to explain how to tackle scope 3 emissions, how it works in practice and how carbon accounting software can streamline the process. You’ll learn · What are scope 3 emissions? · What are the drivers for those tackling scope 3 emissions? · Where to start with scope 3 emissions · How does supply chain engagement work in practice? · What are the benefits for suppliers involved? · How can carbon accounting software help with scope 3 emissions? Resources · Gravity · Carbonology In this episode, we talk about: [02:05] Episode Summary – We introduce Jay Ruckelshaus, Co-Founder and Head of Policy and Partnerships at Gravity, who will accompany Mel on a 3-part mini-series diving into carbon accounting software and the value it can bring. In this final part, Mel and Jay dive into scope 3 emissions, the challenges associated with gathering them and how carbon accounting software can help streamline this process. [02:30] Catch-up on the first part – If you missed the first two parts of the series, catch-up with them here: · Part 1: From Platform To Proof – What Is The Business Driver For Carbon Accounting And Reporting? · Part 2: From Platform To Proof – How Carbon Accounting Software and Verification Combine for Carbon Compliance [03:50] What are scope 3 emissions?: The term ‘scope 3’ comes from a document and initiative called the GHG Protocol, which sets out the core methodology by which companies should measure account for their greenhouse gas emissions. It details 3 different scopes, scope 1 is your direct emissions (i.e. fuel for vehicle use ect), Scope 2 is grid emissions associated with purchased electricity or other forms of energy (i.e. energy for offices). Scope 3 is a very broad term and addresses the emissions created by your value / supply chain. This could include things like transportation of resources you require from a third-party. These emissions can count to upwards of 70% of a companies total emissions, depending on the nature of the business that can even go as high as 90%! [06:50] What are the drivers for those tackling scope 3 emissions? Jay summaries 3 of the main drivers: Biggest emission source: For those looking to truly hit Net Zero, they can’t simply ignore their largest emission source. It poses the biggest risk to the company, so it’s in their best interest to reduce them where possible. Of course, this isn’t easy as it may involve swapping suppliers or working with existing ones to make their practices more sustainable. It’s not as straight forward as addressing your scope 1 and 2 emissions. Regulation requirement: Scope 3 is increasingly being included within mandatory regulations, whereas in previous years, it may have been a voluntary part of those requirements. For example, the new regulations coming into effect for California in 2026 will see around 10,000 companies needing to report on their scope 3 emissions. In the EU, regulations such as CSRD also require reporting on these emissions. Though these haven’t been made mandatory as of yet, we can see that changing in future. Stakeholder requirement changes: Customers and other stakeholders are asking for more evidence of meaningful sustainability action. Supply chain initiatives now are gearing more towards sustainable procurement, which coincides with the rise of CSR related activities. This drive to evaluate your supply chain is being pushed from all directions. [09:55] Where to start with scope 3 emissions: Likely stating the obvious, but ensure you have addressed your scope 1 and 2 emissions first. When looking to your scope 3 emissions, you’ll first need to determine which of the 15 emission categories is going to be important for your business to get a handle on. The nature of your business will determine which of the categories are a priority, so if you’re a digital service based business, then the raw materials category likely won’t be very appliable to you so you’d only need to provide a very high-level summary of any related emissions. For those categories that are a priority, you should identify how in-depth you would need to get with the data analytics, and create a strategy for each of those categories. If you’re struggling to start, there are some industry average statistics out there to help you with those ...