Scope 1 and Scope 2 emissions are linked to a company’s internal energy processes and are therefore directly under its control. Scope 3 emissions are considered “indirect” and occur throughout the company’s entire value chain.
While it is usually fairly straightforward to work on reducing one’s direct carbon footprint, the path to reducing Scope 3 emissions is often anything but linear.
McKinsey recently published an interesting report that helps retail companies understand the composition of their emissions and explore potential paths for reduction.
Below is a chart designed to provoke reflection: for certain reference sectors in retail, Scope 1 and 2 emissions are shown in black, and Scope 3 emissions in light/dark blue.
How often do we hear, “We only measure Scope 1 and 2 emissions because that’s already enough…”
Scope 3 emissions are, by definition, indirect greenhouse gas (GHG) emissions that are generated within a company’s value chain; unlike Scope 1 and 2 emissions, companies do not directly control these emissions. Consequently, reducing Scope 3 emissions depends on the engagement and efforts of all value chain actors, including suppliers, distributors, and consumers, as well as other public and private sector actors—a retailer cannot realize these reductions in isolation.
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