Driving Sustainability Through Scope 3 Emissions: A Path Towards Net Zero
Key Ideas
- Organizations in India commit to reaching Net Zero emissions by 2070, emphasizing the transition to non-fossil energy sources like hydrogen, solar, wind, and methane.
- Measuring Scope 3 emissions helps identify emission hotspots, prioritize reduction strategies, and advance decarbonization efforts across the value chain.
- Initiatives include sustainable sourcing through supply chain collaboration, transitioning to renewable energy, and promoting sustainable packaging and circular solutions.
- Five-step approach for sustainable procurement includes evaluating current practices, defining sustainability goals, selecting right suppliers, setting policies, and measuring performance.
India has set ambitious goals to achieve Net Zero emissions by 2070, requiring a significant shift towards non-fossil energy sources such as hydrogen, solar, wind, and methane. Organizations are key players in this sustainability drive, focusing not just on reducing emissions within their own operations but also on addressing Scope 3 emissions that occur outside their direct control.
Scope 1 emissions cover sources directly owned or controlled by an organization, like burning fuel for power generation. Scope 2 emissions stem from purchased energy used in production. Scope 3 emissions, however, extend beyond a company's operations to activities up and down its value chain, like product procurement and disposal.
Measuring and addressing Scope 3 emissions offer several benefits, including identifying emission hotspots, evaluating supplier sustainability performance, and informing decision-making for emissions reduction strategies. The industry is emphasizing sustainable sourcing, renewable energy transition, and sustainable packaging solutions to drive systemic change in sustainability practices.
A five-step approach is outlined to implement sustainable procurement practices related to Scope 3 emissions. This includes evaluating current sustainability practices, setting ESG goals and KPIs, selecting eco-conscious suppliers, establishing sustainable procurement policies, and measuring performance towards sustainability targets. By focusing on Scope 3 emissions and sustainable procurement strategies, organizations in India aim to create genuine and quantifiable changes in their decarbonization and sustainability journeys.
Topics
Utilities
Renewable Energy
Innovation
Sustainability
Emissions
Collaboration
Supply Chain
Procurement
Sustainable Packaging
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