The Scope 3 Challenge
Article from MHI Solutions Magazine
The climate impact from your company’s direct operations is likely a fraction of the greenhouse gas emissions produced throughout your corporate value chain, including those generated by suppliers of the goods and services you buy and by customers who use the products you sell. That’s why measuring and mitigating so-called Scope 3 emissions is rapidly emerging as an urgent business priority on the path to a net-zero global economy. Here’s what you need to know about Scope 3 and how to make what seems like a daunting task more manageable.
When Mitsubishi Electric Corporation, parent company of MHI member Mitsubishi Electric Automation, issued its environmental report for FY 2022, the numbers showed that nearly all of the greenhouse gas (GHG) emissions it produced—99.3%—came from outside its own operations.
Almost all of Mitsubishi Electric’s emissions could be traced to two sources—goods and services it purchased from suppliers, and emissions generated by customer use of the products it sold. Product use alone accounted for 92.2% of total emissions.
For most companies, in fact, the climate impact of what takes place within the four walls of the enterprise is dwarfed by those generated throughout the corporate value chain—Scope 3 emissions as defined by the GHG Protocol, the standard for measuring and reporting emissions now used by companies worldwide. . .
Read the full story in MHI Solutions magazine.
