Visualising Supply Chain Sustainability Through Scope Of Ghg Emissions

Visualising Supply Chain Sustainability Through Scope Of Ghg Emissions

The phenomena of global warming and climate change lies in the increase of greenhouse gases in our atmosphere. Experts have warned us for decades about the global impact of carbon emissions. According to an Intergovernmental Panel on Climate Change (IPCC) report 2022, the world is set to reach the 1.5-degree Celsius level within the next two decades, thus IPCC research suggested the world needs to reduce Global Greenhouse Gas (GHG) emissions by 45% by around 2030, and achieve net-zero emissions by 2050, to avert the worst impacts of climate change. However, meeting such long-term goals will require deep cuts in emissions in the coming decades, especially in transportation where emissions are projected to increase significantly by 2050, absent new actions.
Transportation accounts for approximately one-quarter of global greenhouse gas emissions, and these emissions continue to rise.
They’re also expected to grow at a faster rate than that from any other sector, posing a major challenge to efforts to reduce emissions in line with the Paris Agreement, Sustainable development goals and other global goals. That is why many businesses are now recognizing the urgency to reduce their carbon emission occurring from their transportation. But the question is, how? To make decarbonisation effort fruitful, an organization needs effective understanding, measuring, minimising, and monitoring of GHG.
Based on GHG protocol, corporate standard, emissions can be classified into three (03) distinct scopes covering both direct and indirect emissions related to a given organization.

  • Scope 1- covers GHG emissions occurring from sources that are owned and controlled by a company.
  • Scope 2- includes GHG emissions from the generation of purchased electricity consumed by a company.
  • Scope 3- emissions are all indirect emissions (not included in scope 2) that occur in a company’s value chain, including supply chain operations and end-product usage by customers. Scope 3 emissions fall within 15 categories and sources include emissions both upstream and downstream of the organization’s activities.

Scope 3 emissions often make up the largest portion of a company’s carbon footprint. According to the carbon Disclosure Project (CDP), a company’s supply chain emissions (included in Scope 3) are on average 5.5 times more than emissions from its direct operations (Scope 1 and 2). Companies can reduce their Scope 1 and Scope 2 emissions by improving operational efficiency and using renewable energy sources. However, managing and reducing Scope 3 emissions can be complicated depending on the company’s upstream and downstream activities.

Why Scope 3 is tricky?
Scope 1 and 2 are mostly within a company’s control, scope 3 emissions are indirect emissions because they occur in the value chain that are outside company’s direct control. Companies must do a complicated calculations of emissions produced by their suppliers, logistics providers (up- and downstream), third party warehousing providers, business travel, procurement and all other companies involved throughout the value chain. Companies either must collaborate on solutions to reduce emissions with their current suppliers or make changes to their supply chain.
Companies do lack in understanding where greenhouse gas hotspots are rigorous and which elements which elements of the supply chain are the most carbon intensive. It is understood supply chain generate heap of data and this data is difficult to gather, process, and glean insights. It also may be difficult to source primary data on supply chain impacts without an external party which can help to identify, engage, and source the data correctly. Also, many companies may face resistance when approaching suppliers for data directly and could use some external help to do it.
Understanding and correctly measuring Scope 3 emissions enables companies to identify the greatest potential for GHG reduction across their entire business value chain, and to make more informed decisions about their company’s operations and the products they buy, sell, and manufacture.


Why measure your scope 3 emissions?

A plan for Net Zero
To attain net zero, an organization cannot just focus on two compulsory scopes i.e., 1 and 2, but also scope 3 emissions. Scope 3 emission reporting is an opportunity to understand the carbon emission of the supply chain and to reduce by far the largest proportion of the carbon footprint.
Most organizations can easily measure and report scope 1 and 2 emissions but measuring scope 3 requires multiple calculation criteria throughout the complicated supply chain, but if done correctly is believed to have the most remarkable impact of the three scope emissions.


As per a CDP report, on average 80% of a company’s total emissions are attributed to scope 3, which creates the largest area of opportunity for emissions reduction. 

How can we help?

Our Net Zero Resource: Carbonex  
Being a Pro-Environment Organisation, 3SC proudly owns the responsibility towards a sustainable future. We are supporting organisations in achieving their Net-Zero Emission targets by eliminating wasteful Supply Chain and Align with sustainable development goals (SDGs).
3SC is focused on reducing transportation and distribution emissions occurring in upstream (suppliers) and downstream (customers) elements of the value chain. One year ago, 3SC has launched its sustainable analytics and software service Carbonex. It is advanced analytics driven engine, which enables the organization to screen, measure, reduce and monitor its carbon footprint in each leg of transportation enabling the organizations to achieve their goals visions with respect to sustainable supply chain. The tool is in accordance with the Greenhouse Gas (GHG) Protocol and enables you to produce robust and consistent carbon footprint quantifications.
Carbonex gathers data from multiple sources – infrastructure, applications, third-parties, IoT, and other emerging technologies – in order to heighten decision-making in the operational, tactical and strategic processes that comprise successful supply chain management (SCM). It will provide the real-time visibility which increases supply chain flexibility and allows decision-makers to more accurately evaluate between carbon emission and customer service levels & cost.

Carbonex functions on a simple 4-prong process that enables strategic and preemptive decision-making, bringing down carbon emissions drastically, right from origin all the way to destination.

  • Screening offers complete visibility of the operational process analytics, identifying the causes of CO2 emissions in transportation.
  • Measurement provides accurate data collection and reporting through our Global Facility Carbon Calculator
  • Reducing occurs through control and mitigation of emissions using advanced machine learning and AI algorithms
  • Monitor occurs through Sustainability dashboards which enable users to view real time, accurate GHG emissions and facilitating further analysis. Applied machine learning enables you to analyze trends and predictively model future carbon footprint.

This end-to-end sustainability solution allows our customers to determine the shortest, most optimal and cost-effective routes for every journey and mode of transportation. Digitization of the entire process with tools like Load Optimization, Network Optimization, Fuel Optimization, Mode Conversion, use of Alternate Fuel, Usage of sustainable packaging and Eco-friendly materials helps to reduce the greenhouse effect.

Please feel free to contact us for any inquiries at marketing@3scsolution.com

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