What is the Carbon Balance and the different scopes ?
Understanding the Carbon Footprint
The carbon footprint makes it possible to assess the impact of a company on the climate by measuring all of its greenhouse gas emissions. This methodology is used as a basis for developing a transition plan to a decarbonized economy.
Principle for calculating the Carbon Balance
The calculation is based on four essential steps: :
- List of activities induced by the company
- Data collection Quantitative
- Identifying the emission factor corresponding
- Carbon footprint calculation Total
Concrete calculation example :
- Vehicle travel: 460 liters of diesel × 3 kgCO2/liter = 1.4 tCO2e
- Computer purchase: 20 computers × 33 kgCO2e = 0.7 tCO2e
The 3 Scopes: classification of emissions
Scope 1: direct emissions
Scope 1 concerns all direct emissions from the company :
- Fuel consumption (vehicle fuels, heating gas)
- Fugitive emissions (air conditioner leaks)
- Direct industrial processes
Scope 2: indirect energy emissions
Scope 2 covers indirect emissions related to energy consumption, mainly electricity purchased by the company.
Scope 3: indirect emissions from the value chain
Scope 3 is divided into two categories :
Scope 3 - Upstream:
- Purchases of goods and services
- Upstream transport
- Business travel and home to work
- Fixed assets
Scope 3- Downstream:
- Downstream transport
- Customer trips
- Waste treatment
- Use of the products sold
Why is Scope 3 at the heart of decarbonization ?
A major impact on the carbon footprint
For the majority of companies (excluding energy-intensive industries), Scope 3 represents more than 75% of total emissions. Neglecting this perimeter means ignoring most of its climate impact.
This distribution means that Scopes 1 and 2, while important, represent only a minority fraction of emissions. It is therefore on Scope 3 that the main reduction potential is concentrated.
Regulatory requirements in France
Since the Decree No. 22-982 of July 1, 2022, following the Citizens' Climate Convention, Scope 3 is officially integrated in the carbon footprint of companies subject to reporting obligations:
- Companies with more than 500 employees (250 overseas)
- Public establishments with more than 250 employees
- Local authorities with more than 50,000 inhabitants
The regulations now require the consideration of significant indirect emissions, even if an exemption exists for certain organizations (with a minimum Scope 2 recommended).
How do you measure Scope 3 ? The challenges and solutions
The complexity of measuring Scope 3
The main challenge of Scope 3 lies in the absence of direct data. The company does not control these emissions and must therefore develop reliable estimation strategies.
Four effective measurement methods
1. Solicitation of Stakeholders
Request GHG information directly from strategic suppliers via questionnaires and dedicated exchanges.
2. Use of footprint base ratios
Use generic emission factors (physical or monetary) of Imprint Base for missing data.
3. Sectoral emission factors
Some sectors have established specific standards (sanitation, textiles, textiles, construction, transport, agribusiness) allowing a more accurate estimate.
4. Life Cycle Analysis (LCA)
LCA makes it possible to estimate all the emissions of a product, from its design to its end of life. Bases like INIES for building materials facilitate this approach.
Practical advice: prefer the physical approach to the monetary approach, which induces greater uncertainty about the results.
Scope 3 reduction levers
Acting on transport emissions
Transport represents a major driver of reduction, divided into four categories:
Home-Work Travel
- Setting up an Employer Mobility Plan
- Facilitate carpooling and soft mobility
- Develop remote working
- Raise awareness among employees
Business trips
- Limiting and grouping trips
- Choose the train over the plane
- Adapt the expense reimbursement policy
- Offer alternatives to physical travel
Upstream and Downstream Freight Transport
- Reducing volumes and distances
- Give priority to less carbon-intensive transport
- Rely on optimized logistics platforms
- Comparing transporters' GHG emissions
Visitor and customer travel
- Facilitate the use of soft mobility
- Optimizing the organization of events
Act on the purchase of products and services
Sobriety and lifespan
- Identify the right need (buy less)
- Taking into account the complete life cycle
- Integrating the concept of reparability
- Avoid disposable items
Sustainable procurement plan
- Give priority to labels and certifications (organic farming, FSC, PEFC, ecolabels)
- Requiring traceability of raw materials
- Introduce incentive selection criteria into markets
Resources and circular economy
- Encourage reuse, reuse and repair
- Favour biosourced and eco-responsible materials
- Develop recycling
Supplier commitment
- Ask service providers about their GHG emissions
- Specify technical clauses in contracts
- Create a dynamic of co-construction
Act on the products and services sold
Eco-design
- Analyzing the product life cycle (LCA)
- Replacing conventional materials with sustainable alternatives
- Optimize the phases of transport, use and end of life
Economy of functionality
- Rethinking the response to customer needs
- Innovating in the function and use of products
- Develop sharing models
Longer lifespan
- Facilitate repair and remanufacturing
- Designing sustainable and scalable products
- Offer efficient after-sales services
How do you involve your value chain ?
Creating new relationships with suppliers
The reduction of Scope 3 requires a profound transformation of commercial relationships :
- Strengthened cooperation : moving from a traditional customer-supplier relationship to a partnership
- Co-construction of solutions : involving suppliers in the design of decarbonization strategies
- Co-innovation : develop new low-carbon products and services together
Mobilizing internal teams
The low-carbon transition concerns the whole company :
- Raise awareness among all employees about climate issues
- Train teams in good decarbonization practices
- Creating a corporate culture oriented towards sustainability
- Involve each department in the action plan
Adapting your business model
Decarbonization can become a driver of transformation and innovation :
- Reinventing sustainable business models
- Exploring the functionality economy
- Develop new service offerings
- Differentiating yourself through climate commitment
The co-benefits of a Scope 3 Strategy
Beyond reducing emissions, an ambitious Scope 3 strategy generates multiple benefits :
Commercial advantages :
- Increased loyalty of customers who are sensitive to environmental issues
- Access to new market opportunities
- Competitive differentiation
Operational benefits :
- Control of physical risks related to climate change
- Anticipation of regulatory changes
- Protection of company reputation
Human benefits :
- Building team loyalty around a meaningful project
- Increased attractiveness for talent
- Increased employee engagement
Strategic advantages :
- Increased resilience in the face of crises
- Innovation driven by carbon constraints
- Sustainable relationships with the ecosystem
Conclusion: take action on Scope 3
Scope 3 is no longer an option but a necessity for any company committed to the ecological transition. Representing more than 75% of emissions, it concentrates the main potential for reduction and innovation.
Key points to remember :
- Measure to act : a complete carbon footprint including Scope 3 is essential to identify priority action levers.
- Involve your value chain : decarbonization is a collective project requiring the mobilization of all actors.
- Transforming your model : Scope 3 is an opportunity to reinvent your business model towards greater sustainability.
- Creating value : the co-benefits go well beyond carbon reduction alone.
Reducing Scope 3 certainly represents a complex challenge, but it is also a great opportunity for transformation, innovation and sustainable value creation for your business.
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