As sustainability increasingly becomes integrated into business strategies and regulatory frameworks, the complexity of tracking greenhouse gas emissions along the value chain becomes more apparent. Scope 3 emissions, in particular,pose a significant challenge for many companies. The intricacy of monitoring not only one's own emissions but also those throughout the value chain, including emissions from other companies, proves to be a daunting task for the industry.
In September 2023, IBM conducted a survey to shed light on companies' readiness to address Scope 3 emissions. The sample included 250 participants from various markets, including the US,UK, UAE, Australia, Brazil, France, Germany, India, Italy, Japan, Mexico,Singapore, and Spain.
The survey revealed that 60% of companies find reporting and compliance challenging. Despite this, 45% of respondents believe they are prepared to report on Scope 3 greenhouse emissions by 2024. However, the reality paints a different picture,with only 38% currently measuring their Scope 3 footprints.
It's important to note that this survey targeted companies with 1000 employees or more. However, our conversations with customers indicate that small businesses are also affected, perhaps even more so, as resource constraints often pose a significant challenge.
To understand the significance of Scope 3 emissions, it's essential to grasp the concept of Scopes 1, 2, and 3:
· Scope1
Direct emissions from sources owned or controlled by the organization, such ascombustion processes or company-owned vehicles.
· Scope2
Indirect emissions resulting from purchased electricity, heat, or steam.
· Scope3
Indirect emissions occurring in the value chain, including upstream anddownstream activities like raw material extraction and product transportation.
Monitoring the CO2 emissions in supply chain is essential for manufacturing companies to gain a comprehensive understanding of their carbon footprint.
ChainTraced offers a solution to navigate the complexities of Scope 3 emissions by facilitating communication and collaboration with suppliers across the supply chain. With the ChainTraced platform, you can gain deeper insights into your emissions footprint and integrate it into your company's strategy. Our platform enables the digital collection and calculation of CO2 data through out the metallic value chain.
The first step to start tracking Scope 3 emissions doesn’t have to be big; we'll happily assist you along the way. Connect with us to explore how ChainTraced can help your organization establish a more accurate and reliable view of its emissions footprint. Let's work together towards driving decarbonization and building a sustainable future.
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