Scope 3 emissions
inventory
Scope 3 emissions inventory is recommended to help stakeholders understand a company’s full value chain and prioritise steps to reduce their greenhouse gas emissions.
Scope 3 emissions are the emissions associated with all upstream and downstream activities in a company’s value chain.
Inspired work with businesses to identify and quantify all applicable Scope 3 emissions. The key steps in Inspired’s Scope 3 inventory service are:
- Applicability review to identify relevant Scope 3 categories
- Calculation of all applicable Scope 3 emissions following the Greenhouse Gas Protocol methodology
- Support to improve data collection, i.e. through supplier engagement and internal data process improvements
The results and analysis of the Scope 3 inventory are presented in the Carbon Balance Sheet report.
Inspired’s approach
Inspired start the Scope 3 service by hosting an applicability review session where the boundary of the client’s greenhouse gas (GHG) emissions footprint is established, applicable Scope 3 emissions categories identified and data available/required for each applicable emissions category discussed.
We then request the required data for all applicable categories, ensuring a methodology is established for all applicable categories, using the most accurate calculation method possible, as per the GHG Protocol guidelines.
Inspired’s ESG consultants will arrange follow-up sessions with relevant teams to support the data collection process. Where identified, we will recommend steps to improve the accuracy of Scope 3 data reporting on an ongoing basis.
Once the required data is received, we will calculate the Scope 3 emissions using our in-house emissions calculator tools. Calculations will be in line with the Greenhouse Gas Protocol Corporate Value Chain (Scope 3) Standard.
Key deliverables
Inspired’s Scope 3 emissions inventory service typically takes six months from kick-off to delivery.
The first three months comprise data collection while the latter three months involve the Scope 3 calculations and Carbon Balance Sheet report production.
A Carbon Balance Sheet report detailing Scope 1, 2, and 3 emissions, hotspot analysis, and summary of methodologies used
Support understanding your
businesses Scope 3 emissions footprint
Talk to an expert
Kristina Beadle
ESG Director
“The CDP estimates that Scope 3 emissions account for an average of 75% of an organisation’s total greenhouse gas emissions. Although the importance of Scope 3 emissions varies considerably by sector and can be upwards of 90% in some industries, they are far too important to overlook.”
Related ESG services
Climate-Related Financial Disclosures (CFD or TCFD)
Scope 3 emissions are recommended to be included under the TCFD’s ‘Metrics and Targets’ section. As part of Inspired’s Climate-Related Financial Disclosure offering, a Scope 3 emissions inventory is calculated.
Streamlined Energy and Carbon Reporting (SECR) – Scope 1 and 2 emissions
Although covering different aspects of a business’s emissions impact, certain Scope 3 categories are linked to Scope 1 and 2 emissions. Inspired recommend calculating a full Scope 1, 2, and 3 emissions inventory in order to identify hotspots and track reductions.
Policy Procurement Note 06/21 (Carbon Reduction Plan)
A PPN06/21 Carbon Reduction Plan requires businesses to disclose baseline and recent GHG emissions – including five Scope 3 categories – targets and decarbonisation actions. The five categories required to be disclosed will be calculated, if applicable, as part of Inspired’s Scope 3 emissions inventory service.
Science-Based Target initiative validation support
The Science-Based Target initiative (SBTi) is the internationally recognised body for validating emission reduction targets. Companies going through the SBTi validation process need to provide a full Scope 3 inventory, calculated as per the GHG Protocol guidelines.
Life Cycle Assessments (LCA) / Environmental Product Declarations (EPD)
Life Cycle Assessments (LCA) / Environmental Product Declarations (EPD) allow businesses to demonstrate the environmental impact of the products they sell and are being increasingly requested by ESG-conscious customers. The information and data used to calculate corporate Scope 3 emissions form the basis of understanding a company’s product-related emissions.
Greenhouse gas emissions verification – ISO 14064
The ISO-14064 standard is a process to verify a company’s greenhouse gas emissions footprint and covers operational as well as value chain emissions. Inspired’s ESG Quality Assurance team can verify the Scope 3 inventory to provide additional assurance of the calculations and output.
Net-Zero Strategy
Net-zero should be achieved by reducing Scope 1, 2, and 3 emissions as far as possible; a Net-Zero Strategy plans for how these reductions will be achieved. Understanding your baseline GHG emissions is the starting point for developing a net-zero strategy as it allows hotspots to be identified and progress tracked.
Partnership Carbon Accounting Financials (PCAF)
The Partnership Carbon Accounting Financials (PCAF) provides specific methodologies to account for investment-related Scope 3 emissions. For financial institutes, Inspired will follow the PCAF guidance to measure Category 15 – investment-related Scope 3 emissions.
Quick links
At Inspired, we’ve been putting a lot of effort into helping businesses to understand ESG and its associated benefits. But, our support doesn’t end there.
Climate-related financial disclosures (CFD or TCFD)
Science-Based Target initiative validation support
Life Cycle Assessments (LCA) / Environmental Product Declarations (EPD)
Greenhouse gas emissions verification – ISO 14064
Get in touch
Contact one of our ESG consultants today to discuss your Scope 3 measurement options in more detail.