citric acid production. Our diverse teams of experts combine innovative thinking and breakthrough useof technologies to progress further, faster. The breadth of the data types can be large, and the size and complexity should not be underestimated. The new guidelines for Product Carbon Footprint (PCF) and Corporate Scope 3 emission reporting - which were hailed as a 'first-of-its-kind' by TfS - provide specific calculation instructions. If you have any questions or would like more information on our privacy policy and your rights, please contact info@tfs-initiative.com. positively engage with employees to reduce emissions from business travel and employee commuting. Categories 1 and 2: Purchased goods and services and capital goods Together for Sustainability creator of the PCF Guideline is a member-driven initiative, made up of chemical companies committed to building global CSR standards throughout their industry and across the entire chemical supply chain. While chemicals are fundamental to modern society and innovative breakthroughs,. 29 March, 10:00-11:00 BST, Natasha Allard Not really. Long-term data show that the European Unioun (EU) chemicals industry, including pharmaceuticals, significantly reduced its greenhouse gas (GHG) emissions on a consistent basis from 330.4 million tonnes of CO 2 equivalents in 1990 to 165.8 million tonnes in 2010.. Anthropological Sources of Greenhouse Gas Emissions. Four additional chapters including reporting principles and guidance on Scope 3.1 calculation on corporate level will be published in November 2022. The top five subdivisions are electricity supply, coal mining, primary metal and metal product manufacturing, oil and gas extraction and metal ore mining. Guest Speakers: Rowan Adams, Executive Vice President, Corporate Affairs, and Anna Pierce, Director of Sustainability at Tate & Lyle. Sky, Olwen Smith This presents two significant challenges for the food and beverage industry: measurement and emissions reductions. A large number of chemical companies rely on raw materials that can only be sourced from a small number of countries, and suppliers, globally. Put supply chain sustainability first if you want your business to thrive, Fashion business must look beyond textile swapping to achieve sustainability goals. For example, Kraft Foods found that value chain emissions comprise more than 90% of their total emissions. Since January 2021, she has been responsible for the strategic development and delivery of dentsus environment strategy, including supporting dentsu in becoming one of the first companies globally to achieve SBTis new net zero standard with near and long term targets. She leads a team of 4 integration specialists who work closely with fund managers and analysts to identify efficient and value adding methods for integrating sustainability aspects into their investment processes. The Chemical sector is recognised as essential in the transition to the low carbon economy, so turning Scope 3 on its head and looking at the downstream carbon benefits could be a more useful narrative for your company. Registered in England no. Scope 3 is an optional reporting category that allows for the treatment of all other indirect emissions. ADI is a boutique consulting firm based in Houston, Texas and specializing in oil & gas, energy, chemicals, and industrials. Scope 2 emissions are indirect GHGs released from the energy purchased by an organization. A Scope 3 inventory that is generic and vague helps no one. Most companies' climate impact lies in their supply chains. are not accessible. ADI Analytics actively tracks decarbonization trends in the chemical industry along with drivers such as regulatory push, consumer buying trends, sustainability goals of chemical companies, and recycling technologies. This definition to a certain extent shifts the responsibility of those emissions away from the large chemical companies. Scope 3 emissions cover all other indirect emissions that are not covered in Scope 2. Innovation in chemical production is crucial for the industry to satisfy demanding and environmentally conscious consumers. Suite 1704 His research on country low-carbon transformation has been written up in the New York Times and he is a frequent speaker at industry and academic conferences. Some examples of scope 3 activities are extraction and production of purchased materials; transportation of purchased fuels; and use of products and services. These indirect emissions often represent the largest portion of your corporate footprint; in some cases, they account for as much as 90% of an organization's total emissions. Scope 2 accounts for purchased power, such as electricity and heating. These so-called scope 3 emissions make a considerable contribution to the climate footprints of compa. Image credit: LANXESS. Prior to this, she was a senior consultant at PwCs Sustainability & Climate Change consulting practice focused on providing advisory and risk management services to financial sector clients. Scope 3 emissions Scope 3 encompasses emissions that are not produced by the company itself, and not the result of activities from assets owned or controlled by them, but by those that it's indirectly responsible for, up and down its value chain. Please complete the form to the right to view these informative webinars >>>, We use cookies to improve your experience on our website some are strictly necessary to operate our site, and others are optional. 1. The new Guideline comes at a critical time as companies face increasing pressure to reduce emissions in line with the Paris Agreement goals, set corporate sustainability targets and meet growing customer demands for transparency. The Scope 3 emissions are calculated by category in accordance with the guidelines of the GHG Protocol Standard (at least "minimum boundaries "). As discussed above, Scope 3 emissions are indirect emissions, most of which come from processing, selling, and end-of-life treatment of sold products of the chemical companies. Nate has more than 15 years of experience working on industry, trade, energy, and climate in Asia, the U.S., and Europe. The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network. Chemicals in Japan have started to look for ways to locally recycle Efficiency & renewable feasibility studies, Carbon footprints & carbon action programme, Supply chain environmental & social impact assessment, We can help you report on your Scope 3 emissions. Scope 3 emissions are dominant in their overall emissions output. Brett points out that across the many companies they work with, Scope 3 emissions account for a surprising 90% of total emissions. All Rights Reserved, 440 Cobia Drive His role is to lead the firms partnership in the delivery of its strategic vision, to be the UKs leading law firm, famous for its client experience. The $4.6 trillion chemical industry is integral to sectors ranging from aerospace to automotive and is responsible for a high level of global emissions, 77% of which are in Scope 3 (i.e.. He has authored or co-authored dozens of peer-reviewed journal articles and reports, including Technologies and policies to decarbonize global industry: Review and assessment of mitigation drivers through 2070. "Calculating Scope 3 emissions is particularly challenging in the chemical industry, due to the complexity of chemical production. As the TfS Guideline is available as open-source data, TfS aims to drive change beyond the chemical industry, providing the foundation for other industries to work on carbon reductions. Scope 3 reporting has thus far been mostly voluntary, but the pressure to make it mandatory . What is the Scope 3 Standard? With key climate milestones already set for 2030 and 2050, a growing climate focus from investors and customers, waiting is not an option. Identify best practices for emissions accounting, with a focus on critical scope 3 categories for the industry. The infographic below is prepared by Global Efficiency Intelligence, LLC to summarize some key information on energy use and emissions in the chemical industry. He works with financial institutions, industry associations, and other stakeholders to help them set Science-Based Targets for GHG emissions reduction. Clients include blue chip companies, leading financial institutions, public and private sector organisations and foreign owned corporates. A Scope 3 footprint of this magnitude is required to be included if businesses choose to set Science Based Targets (SBTs), and increasingly net zero commitments. Olwen Smith is the UK and Worldwide Regional Lead for CDPs Commit to Action Programme and is also part of the SBTis Corporate Engagement team. The availability of PCF data is limited, and calculations are often not directly comparable. Business Development Manager, Oil & Gas Major. As Supply Chains Manager at the We Mean Business Coalition, Lydia works across net zero climate action and supply chains strategy. For example, the purchased goods and services category could have sub-groups such as fossil fuel-based raw materials, bio-based raw materials, plant equipment, IT services and so on. Isobel is responsible for establishing and maintaining the sustainability strategy across Owen Mumfords research and development division and communicating this strategy into all other areas of the business. 1 For financial institutions, other ways include the following (Economist, 2020): one, gauging . most of which come from processing, selling, and end-of-life treatment of sold Scope 3 are value chain emissions that result from use of soled products. The chemical industry, however, also emits greater than two gigatons of greenhouse gases per annum globally. Peter Duff is the chairperson of Shoosmiths. The Scope 3 Standard provides a methodology that can be used to account for and report emissions from companies of all sectors, globally. PA Consulting, Dr Warren Bowden Dentsu International, Olwen Smith Guest Speaker: Dorothe DHerde, Head of Sustainable Business at Vodafone. A Scope 3 emission is any indirect emission that results from activities related to a company or organization. info@adi-analytics.com, Benchmarking Shale Gas Monetization Options, Assessing Opportunities in Bio-Based Chemicals. The work companies do to tackle Scope 3 emissions can help strengthen relationships with suppliers and improve collaborationactions that can lead to cost savings, new revenue-generating opportunities or both. Lloyds Banking Group. Head of Sustainability & Innovation While significant in emissions impact, the process of sourcing and accurately capturing data for Scope 3 can be a challenge. We use cookies to optimise our website and our service. The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user. This is much higher than both Scope 1 (emissions directly generated by . Some examples are extraction and production of purchased materials, transportation of purchased fuels, use of sold products and services . (GHG) emissions, the GHG Protocol Corporate Standard classifies emissions into From 2004 to 2013, Stephanie worked at HSBC across the corporate banking and sustainability teams, including latterly as the deputy Global Head of Sustainability Risk. purchased electricity. World Resources Institute and Finance Sector Lead To view or add a comment, sign in. In short, Scope 3 emissions have largely been neglected until now. TfS members drew upon expertise in GHG accounting, as well as the chemical supply chain, and the new guideline is the culmination of a workstream dedicated to finding a solution to the Scope 3 problem, implementing meaningful PCF information. This encapsulates more than just client service, but how Shoosmiths interacts with its clients, staff and communities. The Scope 3 emissions from the Chemical sector are significant and need to be addressed. Whilst this means that there are only 15 categories instead of hundreds, it can limit your ability to tell the true story of your business. Reducing emissions by simply shifting who owns what does not have a real-world impact: it does not genuinely show the full impact of the products youre helping to create. An innovation and transformation consultancy, we are 3,300 specialists inconsumer and manufacturing, defence and security, energy andutilities, financial services, governmentand public services, health and lifesciences, and transport. The PCF Guideline offers clear instructions on calculating Greenhouse Gas (GHG) emissions for specific chemicals production, e.g. We wrote in an earlier blog that the Paris Agreements goal to limit global warming to well below 2 C compared to pre-industrial levels will be challenged by decarbonization of several hard-to-abate sectors. We have supported business of different scale and product size across the Chemical sector such as Croda, Elementis and Synthomer, to tailor Scope 3 to them. The Guideline can be used by both corporations and suppliers to identify, track and reduce Scope 3 upstream emissions. The chemical and petrochemical industry is the largest consumer of energy among industrial sectors and is one of the top GHG emissions-intensive industries as well. As strategies, technologies and innovation collide, we create opportunity from complexity. To support companies to reduce carbon emissions across their value chain, the UN Global Compact Network UK hosted a series of topical webinars exploring how companies can tackle Scope 3 emissions categories as defined by the GHG Protocol. Climate and Environment Manager The decarbonisation of industry has come under increased scrutiny in recent months and is a crucial part of The Governments Clean Growth Strategy for meeting the UKs legally binding Carbon Budgets. He has authored or co-authored dozens of peer-reviewed journal articles and reports, including Technologies and policies to decarbonize global industry: Review and assessment of mitigation drivers through 2070. Electricity supply is the subdivision that reports the most scope 1 emissions. If a company's Scope 3 emissions make up more than 40% of its total emissions, then the near-term target must cover two-thirds (67%) of Scope 3 emissions. Scope 3 emissions, also referred to as value chain emissions, often represent the majority of an organization's total GHG emissions. Once consensus is reached and standards are finalized, food and beverage . Taking ownership of supply chain emissions. 17 March, 10:00-11:00 GMT, Alexis Munro Head of ESG Integration Shoosmiths has near-term science-based emissions reduction targets validated by the Science Based Targets initiative and Peter is a member of Business In the Communitys Climate Action Leadership Team. August 9, 2022. Corporate GHG Emissions in the Chemical Sector Value Chain (WBCSD). Thus, to reduce carbon emissions, chemical companies need to address purchased materials that account for almost half of scope 3 emissions. Cookies are small text files containing a string of characters which are sent and stored on your computer or mobile device when you visit our website (the Site). Upstream Scope 3 emissions 1. Reducing carbon emissions is, however, a complicated task. Nate holds a PhD from the Energy and Resources Group at the University of California, Berkeley, a masters degree from Stanford University, and a bachelors degree from Cornell University. The retailer will have . With around two-thirds of the chemical industrys global emissions in scope 3, companies are facing urgent pressures to reduce emissions in order to meet the Paris Agreement goals, set corporate sustainability targets and meet increasing customer demands for supply chain transparency. Apple's experience shows that for many businesses seeking to become carbon neutral, the bulk of progress must be made in reducing scope 3 emissions - especially for companies selling physical products. Clearer guidance and reporting feels tantalisingly close, but what should businesses do in the meantime? Environmental Sustainability Manager What clients want from their law firms is changing and Peters role is to ensure that this is mirrored precisely in the way that the firms legal teams are developed and supported, whilst sustaining its strong and distinctive culture, which is an authentic point of difference for Shoosmiths in a competitive legal market. Emma has also worked at environmental consultancy, RPS Group, and gained an MSc in Carbon Management and BSc with Honours in Environmental Science, both from the University of Edinburgh. Scope 3 emissions are also indirect GHG emissions, accounting for upstream and downstream emissions from a product or service, and emissions across a business's supply chain. Provide guidance on addressing the impact of the circular economy (e.g., recycling) in accounting and target-setting. This impact tells one side of your story. 2022 Reducing Scope 3 Emissions - Webinar Series, Purchased Goods & Services & Capital Goods, Global Head of Value Chains & Regional Director Corporations, UK & Worldwide Regional Lead - Commit to Action Programme, Design Engineer (Sustainable Product Development), Global Head of Sustainability - Consumer & Manufacturing, 2020 Reducing Scope 3 Emissions - Webinar Series. Scope 1 emissions are GHGs released directly from a business. But as a user of the energy, the consuming party is still responsible . Schroders, Nate Aden products itself than the average end-user for whom recycling or alternative materials Thomas Udesen, CPO Bayer and TfS Steering Committee member, said: Calculating Scope 3 emissions is particularly challenging in the chemical industry, due to the complexity of chemical production. Upstream leased assets Downstream Scope 3 emissions 9. Since 2009, ADI Analytics has completed ~500 projects for ~200 clients. Scope 1 The Melbourne-based miner's scope 3 emissions were 402.5MTCO2E in the 12 months to 30 June, with iron ore making up an estimated 205.6 to 322.6 million tonnes contribution to that total. Croda, Steven Thompson Scope 3 (upstream) greenhouse gas (GHG) emissions constitute a major share of a chemical company's emissions. These emissions can come from a variety of sources, such as the production and transportation of materials, waste disposal, employee commuting, and the use of company-owned vehicles. Discover more at paconsulting.com and connect with PA on LinkedIn and Twitter. This definition to a certain extent shifts Most recently, she has led the firms net zero commitments in alignment with the Science Based Targets Initiative and the Net Zero Asset Managers Initiative. Owen Mumfords goal is to improve quality of life, encourage adherence to treatment and reduce healthcare costs. "ADI Analytics work was so good it sparked a discussion with our cost estimators we eventually adjusted our numbers." The most ambitious scope 3 targets are set using a science-based targets setting method. Bertrand Conquret, TfS President, President of Global Supply Chain & Chief Procurement Officer at Henkel, said: The new PCF Guideline is part of TfS mission and our speedboat to foster sustainability and have impact in global chemical supply chains. Matteo currently works for Lloyds Banking Group where he utilises his knowledge of the energy industry, sustainability management, engagement and technical expertise to deliver the group operational sustainability ambitions. For a successful Scope 3 reporting process, consider the following suggestions: The Scope 3 categories within the GHG Protocol are intentionally broad, they need to work for many different businesses. Addressing Scope 1 and 2 emissions alone may not be enough to decarbonize the chemical industry and enact sustainability on organizational and global scales. Many fashion retailers rely heavily on third-party suppliers for materials, fabrics, and chemicals. However, 2 . Descriptive information Company response Company name . Matteo is aSenior SustainabilityManager with an Engineering background, an MSc in Renewable Energy and Energy and Sustainability Management experience in some of the largest British energy consumers. Scope 3 emissions take place within both the upstream and downstream value chain of a business. Together for Sustainability (TfS) is actively raising CSR standards throughout the chemical industry. During our interactive event, youll hear from cross-sector sustainability leaders and chemical companies on their experience with the PCF Guideline, including: How suppliers and corporations can use it, How it can be rolled out in your organisation, Please note that this event will be recorded, and the recording may be publicly available. Houston, TX 77494, +1 (281) 506-8234 There, Emma was the technical lead for their science-based targets offering a service which she developed and brought to market and had worked with 30% of UK companies with approved science-based targets at the time of her departure. According to Green House Gas Protocol, there are 15 categories that Scope 3 emissions can fall into, including capital goods, business travel, and use of sold products. Tesco, Emma Watson These are indirect to data centre operators and arise from upstream and downstream supply chain processes. Develop a deliverable emissions reduction strategy that meets your needs and ambitions. Senior Sustainability Manager Group Sustainability Director Where . Emma Watson joined CDP in 2021 as the SBTis Senior Manager for Net-Zero. The chemical industry's Scope 3 emissions - those indirectly released upstream and downstream in a company's value chain - represent the majority of all emissions at 64% because of its dependence on oil and gas extraction, as well as carbon-dense products such as plastics. A key priority was the mobilisation of private sector investment into developing countries, with a focus on impact, climate, and achievement of the Sustainable Development Goals. "Calculating Scope 3 emissions is particularly challenging in the chemical industry, due to the complexity of chemical production. Thus, in a way, Scope 2 emissions are a special kind of Scope 3 emissions, but they are counted separately due to historical reasons. 22 September, Brussels: Together for Sustainability (TfS), a sustainability initiative and global network of 37 companies raising CSR standards across the chemical industry, is launching the first-of-its-kind guideline to transform the way chemical companies calculate and track upstream supply chain emissions. National Grid, Purchased Goods & Services & Capital Goods Before being elected to the role in 2015, Peter was head of the firms commercial division and, prior to that, head of the employment and pensions department. Emma has also worked at environmental consultancy, RPS Group, and gained an MSc in Carbon Management and BSc with Honours in Environmental Science, both from the University of Edinburgh. UK & Worldwide Regional Lead - Commit to Action Programme How Can Scope 3 Emissions Be Reduced? This function allows the website to load faster by pre-loading certain procedures. The $4.6 trillion chemical industry is integral to sectors ranging from aerospace to consumer goods and telecommunication. It is no longer a case of businesses simply monitoring the emissions from within their own operations (Scope 1 and 2). Embrace New Technologies three scopes. Science Based Targets initiative (SBTi), Business Travel Step 1. Scope 3 encompasses indirect emissions, including those from supply chain partners in manufacturing and distribution. 12 May, 10:00-11:00 BST, Kim McCann For example, citric acid is one of many components found in household cleaners. The new Guideline will be invaluable downstream to the customer-facing point of the chemicals sector; it means producers of goods containing chemicals and ultimately end-users can make better and more sustainable choices. Used to send data to Google Analytics about the visitor's device and behaviour. They occur as a consequence of the activities of a facility, but from sources not owned or controlled by that facility's business. Read our Privacy and Cookies Policy here, Shoosmiths LLP is a leading UK law firm across 13 locations across England, Scotland and Northern Ireland. According to analysis of CDP responses in 2020, 77% of the Chemical industry's emissions are in Scope 3. Sustainability Director sources. The upcoming SBTi sector-specific guidance should provide some support on the reporting challenges, but businesses should not simply wait. assess where the emission hotspots are in their value chain; identify resource and energy risks in their supply chain; identify which suppliers are leaders and which are laggards in terms of their sustainability performance; identify energy efficiency and cost reduction opportunities in their value chain; engage suppliers and assist them to implement sustainability initiatives; improve the energy efficiency of their products; and. 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