Scope 3.1 emissions, also known as "Purchased Goods and Services," refer to the indirect greenhouse gas (GHG) emissions that occur in our value chain. These emissions are associated with the production of goods and services that we purchase from our suppliers.
Scope 3.1 emissions refer specifically to the **"Purchased Goods and Services" category within the broader Scope 3 emissions framework, which is part of the Greenhouse Gas (GHG) Protocol. Scope 3 emissions are all indirect emissions that occur in a company's value chain but are not directly controlled by the company. These emissions are categorized into 15 different categories, with Scope 3.1 focusing on the emissions associated with the goods and services that a company purchases.
Key Points about Scope 3.1 Emissions:
1. Indirect Emissions: Scope 3.1 emissions are not produced directly by the company itself but rather by the suppliers and producers of the goods and services that the company buys.
2. Upstream Emissions: These are considered "upstream" emissions, meaning they occur earlier in the value chain, before the company's operations.
3. Sources of Emissions: The emissions in Scope 3.1 come from the production, transportation, and processing of goods and services that the company purchases. This can include raw materials, components, and even services like marketing or IT.
4. Calculation and Reporting: Measuring Scope 3.1 emissions can be challenging because it requires data from suppliers and potentially complex calculations to estimate the emissions embedded in purchased goods and services. Companies typically rely on a combination of supplier-specific data, industry averages, and lifecycle assessment (LCA) models to estimate these emissions.
5. Importance: Scope 3.1 is often one of the most significant categories of emissions for many companies, especially those in manufacturing, retail, and consumer goods sectors, as it can represent a large portion of their total carbon footprint.
6. Reduction Strategies: Companies can reduce Scope 3.1 emissions by engaging with suppliers to encourage lower-carbon production processes, choosing suppliers with better environmental practices, or redesigning products to require fewer or more sustainable inputs. Understanding and managing Scope 3.1 emissions is crucial for companies committed to reducing their overall carbon footprint and achieving sustainability goals.
The emissions of man-made greenhouse gases (GHG) that lead to climate change are increasing worldwide. Climate scientists suggest that global carbon dioxide emissions must be reduced by 85% below 2000 levels by 2050 to limit the increase in global mean temperature to 2 degrees Celsius above pre-industrial levels. A temperature rise beyond this level will lead to unpredictable and hazardous impacts on both people and ecosystems. Thus, there is an urgent need to accelerate the efforts to decrease anthropogenic GHG emissions. Existing government policies are inadequate, and it is essential for businesses to take the lead and innovate to make progress.
Organizations are increasingly acknowledging the importance of Scope 3 Decarbonization in achieving a sustainable and climate-friendly future. This includes reducing emissions related to the procurement of goods and services (Scope 3.1), which frequently constitute a significant portion of a company's carbon footprint.
Knorr-Bremse has decided to become a member of the Science Based Target Initiative (SBTi), an organization that assists companies in setting decarbonization objectives. As a part of this initiative, Knorr-Bremse aims to reduce the Scope 3.1 emissions by 25% by the year 2030 and 90% by the year 2050. The objective of this project is to increase transparency on the CO2 footprint of Knorr-Bremse's suppliers and purchased products by using primary and secondary data. Moreover, the project aims to analyze the costs, benefits, and availability of potential CO2 reduction strategies to achieve the SBTi target. Through this project, Knorr-Bremse intends to establish a strong decarbonization mindset within the purchasing organization.
Taking corporate action towards addressing GHG emissions not only aligns with environmental ethics but also makes good business sense. Companies can identify opportunities to improve their bottom line, reduce risks, and gain a competitive edge by mitigating GHG emissions. As the frequency and prominence of climate change impacts increase, governments are expected to introduce new policies and market-based incentives to significantly reduce emissions. These drivers will direct economic growth towards a low-carbon trajectory. Therefore, businesses must start planning for this transition now to make decisions that will ensure their investments remain viable for years to come.