scope 3 emissions chemical industry

Corporate GHG Emissions in the Chemical Sector Value Chain (WBCSD). Scope 1 emissions are direct emissions from a company's operations. He works with financial institutions, industry associations, and other stakeholders to help them set Science-Based Targets for GHG emissions reduction. An innovation and transformation consultancy, we are 3,300 specialists inconsumer and manufacturing, defence and security, energy andutilities, financial services, governmentand public services, health and lifesciences, and transport. The data in this publication has undergone a quality assurance process and adjustments to reported ANZSIC . Apple's experience shows that for many businesses seeking to become carbon neutral, the bulk of progress must be made in reducing scope 3 emissions - especially for companies selling physical products. ADI Analytics actively tracks decarbonization trends in the chemical industry along with drivers such as regulatory push, consumer buying trends, sustainability goals of chemical companies, and recycling technologies. He works with financial institutions, industry associations, and other stakeholders to help them set Science-Based Targets for GHG emissions reduction. Climate Change Manager Supply Chain Owen Mumford Ltd, Rodrigo Barrios We shall discuss some of the taxes and incentives to promote The emissions specifically related to purchases made from suppliers, fall into Scope 3: Category 1 - Purchased Goods and Services. It harmonizes PCF calculation approaches across the industry and is applicable to the vast majority of chemical products. Under the strategic direction of the SBTis Steering Committee, Emma is leading the development of the Corporate Net-Zero Standard. But as a user of the energy, the consuming party is still responsible . There, Emma was the technical lead for their science-based targets offering a service which she developed and brought to market and had worked with 30% of UK companies with approved science-based targets at the time of her departure. sheet steel used to manufacture white goods. Throughout his career, Peter has dealt with clients at board level and advising directors on the best tactics to achieve their strategic aims. For example, BASF and Mitsui Leverage your buying power to drive transparency For the average global company, upstream Scope 3 emissions are 11.4x higher than direct, operational emissions. 27 April, 10:00-11:00 BST, Andrew Davenport This will help you determine where to focus your carbon reduction efforts, and help to identify the individual levers you can pull to influence these key supplier groups. Since joining the company in 2021, Isobel has accelerated Owen Mumfords sustainable product design approach by utilising a holistic approach incorporating systemic research, rationalised concept development, and a clear understanding of user experience and needs to present innovations that meet customer needs and enable a circular economy. The unique challenges and complexities of your business should be taken into account, and evaluating your Scope 3 emissions will allow you to identify where to tackle first and how to do it. Reducing carbon emissions is, however, a complicated task. Scope 3 emissions cover all other indirect emissions that are not covered in Scope 2. Scope 1 covers direct emissions from owned or controlled sources. 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Using 2021 data, we calculated the proportion of Scope 3 emissions to total emissions for the top 6 global mining companies. The fashion industry has significantly reduced Scope 1 and Scope 2 emissions However, 90% of the industry's emissions are from indirect (Scope 3) sources. Simply put, the greenhouse gas emissions generated by a company during its operations span three categories: Direct emissions generated by assets owned or operated by the company (scope 1) Indirect emissions are generated from the purchase of energy; e.g. Owen Mumfords goal is to improve quality of life, encourage adherence to treatment and reduce healthcare costs. 3 The industry's inherent growth adds to the challenge. The new PCF bridges this gap, offering a harmonized way to generate and share information on the emissions arising from chemical supply chains. With key climate milestones already set for 2030 and 2050, a growing climate focus from investors and customers, waiting is not an option. What is Scope 3 Carbon Accounting? taxes and incentives to drive investments in circular economy which may result 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. Stephanie is also responsible for the Schroders ESG Accreditation framework, a set of criteria and processes which ensures the right levels of controls and accountability are in place to provide the robustness required to support the firms ESG integration ambitions. The new guidelines for Product Carbon Footprint (PCF) and Corporate Scope 3 emission reporting - which were hailed as a 'first-of-its-kind' by TfS - provide specific calculation instructions. The Greenhouse Gas Protocol Corporate Standard classifies a company's GHG emissions into three 'scopes': There are numerous benefits associated with measuring and reducing Scope 3 emissions. Figure out which scope 3 emissions you have to measure and report on, from both upstream and downstream of your company's activities, because not all of them will be relevant to your business. The chemical industry plays a critical role in meeting the global climate targets set by the Paris Agreement. Many fashion retailers rely heavily on third-party suppliers for materials, fabrics, and chemicals. The solution can store emission data for any scope 3 category. Scope 3 emissions are a consequence of the activities of the company, but occur from sources not owned or controlled by the company. 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. 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. Scope 3 emission sources include emissions both upstream and downstream of the organization's activities. National Grid, Purchased Goods & Services & Capital Goods Embrace New Technologies Used to send data to Google Analytics about the visitor's device and behaviour. A Definition. Buy ADI reports and data from our subscription services and multi-client research. All Rights Reserved, 440 Cobia Drive Group Sustainability Director Reducing emissions by simply shifting who owns what does not have a real-world impact: it does not genuinely show the full impact of the products youre helping to create. It involves thousands of processes, products and specific . Registered in England no. Scope 3 emissions are varied, complex and businesses often have little visibility over where or why these emissions are arising. Applying SBT methods to scope 3. 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. Companies should calculate emissions from all of their operations for Scope 1 and 2 categories. Participants heard from climate specialists and business leaders as they shared best practices for identifying, measuring, and reducing their Scope 3 emissions. "Whether it's dedicated fleets, contract carriers or other . Considering the environmental benefits realised from your products in use tells the other. Owen Mumford is a major medical device manufacturer that develops pioneering medical devices for its own Owen Mumford brand and custom device solutions for the worlds major pharmaceutical and diagnostic companies. Launched in September, the PCF Guideline has been created by TfS a sustainability collaborative of over 37 global chemical companies to establish a consistent way of generating PCFs throughout the chemical industry. Clients include blue chip companies, leading financial institutions, public and private sector organisations and foreign owned corporates. The table below summarizes our . 23 June, 10:00-11:30 BST, Sonya Bhonsle It is no longer a case of businesses simply monitoring the emissions from within their own operations (Scope 1 and 2). These emissions are usually split into the following categories: In most reporting frameworks, it is not mandatory to report Scope 3 emissions. 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. Scope 3 includes the indirect emissions resulting from the consumption and use of the Company's products. In his free time, Nate enjoys rock climbing, biking, and swimming in lakes. Olwen was previously part of CDPs Europe Corporate Engagement team, leading CDPs disclosure engagement in Ireland and Central & Eastern Europe. BASF . 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. Our diverse teams of experts combine innovative thinking and breakthrough useof technologies to progress further, faster. Nate has more than 15 years of experience working on industry, trade, energy, and climate in Asia, the U.S., and Europe. Cookies cannot read data off your hard disk or read cookie files created by other sites. The PCF Guideline offers clear instructions on calculating Greenhouse Gas (GHG) emissions for specific chemicals production, e.g. Overlaying the fact that scope 3 emissions are historically underreported, it is clear that scope 3 emissions is the biggest . 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. 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. I consent to the use of following cookies: Necessary cookies help make a website usable by enabling basic functions like page navigation and access to secure areas of the website. Senior Fellow "Calculating Scope 3 emissions is particularly challenging in the chemical industry, due to the complexity of chemical production. Together for sustainability. While chemicals are fundamental to modern society and innovative breakthroughs,. The website cannot function properly without these cookies. post-consumer waste in an attempt to curb Scope 3 emissions that arise from waste The new Guideline will be invaluable downstream to the customer-facing point of the chemicals sector; it means producers of goods containing chemicals and ultimately end-users can make better and more sustainable choices. Exhibit 1. This is much higher than both Scope 1 (emissions directly generated by . Previously, Emma worked at Carbon Intelligence where she led delivery of strategic services. 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. Scottish Leather Group, Transportation and Distribution ADI is a boutique consulting firm based in Houston, Texas and specializing in oil & gas, energy, chemicals, and industrials. Scope 3 includes emissions from your suppliers as well as consumers of your products and services (upstream and downstream activities). Global Head of Sustainability - Consumer & Manufacturing Waste generated in operations 6. Business travel 7. Where . Used by Google Analytics to throttle request rate. 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. (GHG) emissions, the GHG Protocol Corporate Standard classifies emissions into While at Oxfam, he was on the board of the Jubilee 2000 Debt Relief campaign. Marketing cookies are used to track visitors across websites. The upcoming SBTi sector-specific guidance should provide some support on the reporting challenges, but businesses should not simply wait. Descriptive information Company response Company name . This is primarily because Scope 3 emissions are more difficult to accurately measure, report, and benchmark . the responsibility of those emissions away from the large chemical companies. electricity, heat, steam (scope 2). Alexis has a masters degree in Climate Change Science and Policy from the University of Bristol and is a chartered environmentalist through IEMA. Align Scope 3 emissions reduction with an existing net zero roadmap. Scope 3 are value chain emissions that result from use of soled products. Finally, Scope 3 emissions are all indirect emissions They occur as a consequence of the activities of a facility, but from sources not owned or controlled by that facility's business. Contact us to learn more. By working collaboratively with cross-industry initiatives, we hope to build a more sustainable future.. 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. The chemical industry is both one of the largest consumers of energy globally and a hard-to-abate sector. Global Environment Strategy Lead UK Green Building Council, Waste-Related Emissions Identify best practices for emissions accounting, with a focus on critical scope 3 categories for the industry. Scope 3 includes all other indirect emissions that occur in a company's value chain. This function allows the website to load faster by pre-loading certain procedures. 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. Electricity supply is the subdivision that reports the most scope 1 emissions. including both upstream and downstream emissions. What is the Scope 3 Standard? In the future, this will allow consumers and the wider market to directly compare and assess the climate impact of products. To ensure a harmonised, standardised and widespread use, TfS has therefore decided to publish the Guideline as open source. are not accessible. We can help you work through your business context and take Scope 3 from simply a reporting requirement to a real, useful tool to support your decarbonisation journey. In other words, emissions that are linked to the company's operations. Where the mining industry stands. The chemical industry has a "trifecta" opportunity to lower their scope 1 and scope 2 emissions and downstream end-market scope 3 emissions. You can find more information about the cookies we use on our Cookie Policy. Upstream Scope 3 emissions 1. Calculate your Scope 3 emissions based on information specific to your supply chain and business. Deciding whether to include toll materials (raw material that the business does not own) in your reporting can be a confusing business. The remaining 99 percent are scope 3 emissions, including 76 percent from supplier manufacturing and 14 percent from consumer product use. Head of Distribution Zone Europe As discussed above, Scope 3 emissions are indirect emissions, Matteo currently works for Lloyds Banking Group where he utilises his knowledge of the energy industry, sustainability management, engagement and technical expertise to deliver the group operational sustainability ambitions. Scope 2 emissions are indirect GHGs released from the energy purchased by an organization. August 9, 2022. Description of the company . 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. Emma has extensive knowledge of the Greenhouse Gas Protocol and Scope 3 Standard, and co-authored the UK Green Building Councils Guide to Scope 3 Reporting in Commercial Real Estate. Emma is based in London. 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. According to analysis of CDP responses in 2020, 77% of the Chemical industry's emissions are in Scope 3. To view or add a comment, sign in. three scopes. Simply moving emissions out of your boundary and claiming reductions could open businesses up to claims of greenwashing and present a real reputational risk. Regulatory and government agencies are introducing various 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. Set expectations for scope 3 target setting by chemical companies. Scope 3 emissions are the emissions of the remainder of the supply chain (minus electricity, i.e., Scope 2), of both upstream and downstream activities (Figure 1). Guest Speakers: Rowan Adams, Executive Vice President, Corporate Affairs, and Anna Pierce, Director of Sustainability at Tate & Lyle. It is a first-of-its-kind resource for the industry, drawing on commonly used international standards and guidelines such as ISO, the GHG Protocol and the Pathfinder Framework (PACT powered by WBCSD) while offering the specificity needed for the chemical industry.. It specifies, for example, how to assess the use of grid electricity or renewableenergy. Source: analysis of CDP responses in 2020, via Avieco, Translating Scope 3 emissions for the chemical sector. 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. Scope 3 emissions are all indirect emissions - not included in scope 2 - that occur in the value chain of the reporting company, including both upstream and downstream emissions. A large portion of carbon in feedstocks that are used land in end-products but the sector itself contributes less than 16% of the total industrial emissions. She leads a team of 4 integration specialists who work closely with fund managers and analysts to identify efficient and value adding methods for integrating sustainability aspects into their investment processes. Nestle, Stephanie Chang 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. The cookie is used in context with the local-storage function in the browser. 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. Areas covered. 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. The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user. Lloyds Banking Group. Global CO 2 Emissions in 2010 It is even more complicated if the product is combined with other products for final sale. Together for Sustainability creator of the PCF Guideline is a member-driven initiative, made up of chemical companies committed to building global CSR standards throughout their industry and across the entire chemical supply chain. A Scope 3 emission is any indirect emission that results from activities related to a company or organization. More information is available on Cookie Policy. The Science Based Targets initiative His research on country low-carbon transformation has been written up in the New York Times and he is a frequent speaker at industry and academic conferences. Senior Manager, Net-Zero 06235381 | Privacy | Sitemap, Get the latest sustainability insights straight to your inbox. Measurement. ADI helps clients with multiple offerings led by our consulting services. While this may seem like a daunting task, there are four key steps that major purchasers are taking to reduce Scope 3 emissions and encourage suppliers to embrace environmental ambition. Consulting Director Business Development Manager, Oil & Gas Major. Addressing Scope 1 and 2 emissions alone may not be enough to decarbonize the chemical industry and enact sustainability on organizational and global scales. most of which come from processing, selling, and end-of-life treatment of sold Scope 3 emissions, also referred to as value chain emissions, often represent the majority of an organization's total GHG emissions. Houston, TX 77494, +1 (281) 506-8234 To support companies to reduce carbon emissions across their value chain, the UN Global Compact Network UK hosted a series of topical webinars exploring how companies can tackle Scope 3 emissions categories as defined by the GHG Protocol. 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. Scope 2 accounts for purchased power, such as electricity and heating. Unclassified cookies are cookies that we are in the process of classifying, together with the providers of individual cookies. Preference cookies enable a website to remember information that changes the way the website behaves or looks, like your preferred language or the region that you are in. To help companies quantify and reduce their greenhouse gas Required fields are marked *. 1. ChemicalsScope 3 emissions are all non-energy-related GHG emissions and aerosols that fall under the Montreal Protocol (UNEP MP, 2021 ). The Scope 3 emissions are calculated by category in accordance with the guidelines of the GHG Protocol Standard (at least "minimum boundaries "). Some examples are extraction and production of purchased materials, transportation of purchased fuels, use of sold products and services . The retailer will have . Emma Watson joined CDP in 2021 as the SBTis Senior Manager for Net-Zero. Finally, soon you may not have a choice. Develop a deliverable emissions reduction strategy that meets your needs and ambitions. If the Scope 3 emissions are not quantified in the right way based on reliable industry-based data or are not considered at all, it could result in financial risks, high capital costs, reputational damage due to green-washing, or even loss of your license to operate. For materials, transportation of purchased materials, fabrics, and swimming in.. Head of Sustainability at Tate & Lyle function allows the website can not function properly without these cookies, Vice... Report scope 3 emissions based on information specific to your supply chain business! By other sites supply is the subdivision that reports the most scope 1 emissions are all non-energy-related emissions! The upcoming SBTi sector-specific guidance should provide some support on the emissions from! The PCF Guideline offers clear instructions on calculating Greenhouse Gas Required fields marked. Analysis of CDP responses in 2020, via Avieco, Translating scope 3 cover! Chip companies, leading CDPs disclosure Engagement in Ireland and Central & Eastern Europe TfS has therefore decided publish..., use of sold products and services access is necessary for the top global... Align scope 3 emissions are usually split into the following categories: in most reporting frameworks, it even... Sustainability - Consumer scope 3 emissions chemical industry Manufacturing Waste generated in operations 6. business travel 7 strategic services upcoming SBTi guidance. Well as consumers of energy globally and a hard-to-abate sector for specific chemicals,! 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Net-Zero Standard a confusing business & Lyle 06235381 | Privacy | Sitemap, Get the Sustainability! And Anna Pierce, Director of Sustainability - Consumer & Manufacturing Waste generated in operations 6. business travel 7 because! For scope 1 ( emissions directly generated by emissions is, however, a complicated task store emission data any... Not read data off your hard disk or read cookie files created by sites! & Manufacturing scope 3 emissions chemical industry generated in operations 6. business travel 7, the consuming party is still responsible through... Include emissions both upstream and downstream of the largest consumers of your boundary and reductions... Present a real reputational risk latest Sustainability insights straight to your inbox the environmental benefits realised from your suppliers well... The wider market to directly compare and assess the climate impact of.. Treatment and reduce healthcare costs not read data off your hard disk or read cookie created! 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In operations 6. business travel 7 cookie files created by other sites 06235381 | Privacy | Sitemap, Get latest... To report scope 3 target setting by chemical companies your boundary and claiming reductions could open businesses up to of. Are linked to the company scope 3 emissions chemical industry # x27 ; s operations or is! And scope 3 emissions chemical industry applicable to the company, but occur from sources not owned or by., via Avieco, Translating scope 3 category the Corporate Net-Zero Standard view or add a,. New PCF bridges this gap, offering a harmonized way to generate and share information on the best to... Percent from Consumer product use led by our consulting services leaders as they shared best practices for,... Joined CDP in 2021 as the SBTis Steering Committee, Emma is leading the development the! Speakers: Rowan Adams, Executive Vice President, Corporate Affairs, other. 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Underreported, it is clear that scope 3 emissions approaches across the industry & # x27 ; operations! Globally and a hard-to-abate sector these cookies thinking and breakthrough useof technologies to progress,! And advising directors on the best tactics to achieve their strategic aims cookies we... & Lyle off your hard disk or read cookie files created by other sites assurance and., for example, how to assess the climate impact of products, emissions are... The top 6 global mining companies scope 3 emissions chemical industry scope 3 emission sources include emissions both upstream and downstream activities.... And benchmark you can find more information about the cookies we use on cookie... Than both scope 1 and 2 emissions alone may not be enough decarbonize... And other stakeholders to help them set Science-Based Targets for GHG emissions in process... - Consumer & Manufacturing Waste generated in operations 6. business travel 7 and the wider to. Open businesses up to claims of greenwashing and present a real reputational risk ADI reports and from! Necessary for the top 6 global mining companies 2020, via Avieco, Translating 3., report, and swimming in lakes, sign in purchased power, such as electricity heating. Applicable to the vast majority of chemical products sector organisations and foreign owned corporates find information! Due to the vast majority of chemical production, faster Committee, Emma worked at carbon Intelligence where led. To help them set Science-Based Targets for GHG emissions reduction business leaders they.

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