scope 3 emissions chemical industry

It involves thousands of processes, products and specific . But the clothes will be produced by a third-party textile factory in Italy, for example. products itself than the average end-user for whom recycling or alternative materials Scope 3 emissions are varied, complex and businesses often have little visibility over where or why these emissions are arising. 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. Take the example of a high-end fashion retailer. This definition to a certain extent shifts ChemicalsScope 3 emissions are all non-energy-related GHG emissions and aerosols that fall under the Montreal Protocol (UNEP MP, 2021 ). But as a user of the energy, the consuming party is still responsible . Head of ESG Integration Why you should innovate, collaborate and educate to find success with reusable packaging, The Net Zero Asset Owner Alliance (NZAOA). It specifies, for example, how to assess the use of grid electricity or renewableenergy. Clients include blue chip companies, leading financial institutions, public and private sector organisations and foreign owned corporates. In fact for many organisations, this embodied carbon causes the greatest environmental impact; e.g. Discover how a first-of-its-kind guide for calculating chemical Product Carbon Footprints (PCFs) can revolutionise one of the highest GHG-emitting industries. Given the urgent need for a harmonized PCF calculation approach within the chemical industry, the first edition of the PCF Guideline focuses exclusively on prescribing the specifications for supplier PCF calculations. This is largely because around half of the chemical subsector's energy input is consumed as feedstock - fuel used as a raw material input rather than as a source of energy. Many fashion retailers rely heavily on third-party suppliers for materials, fabrics, and chemicals. An example of this is when we buy, use and dispose of products from suppliers. For most companies, the established, global accounting unit for carbon is the greenhouse gas carbon dioxide (CO 2), and "carbon equivalents" (CO 2 e) - the sum of carbon . Tackling Scope 3 emissions from value chains is the key to understanding the impact and making data-driven decisions to allocate capital appropriately. 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. 27 April, 10:00-11:00 BST, Andrew Davenport The emissions specifically related to purchases made from suppliers, fall into Scope 3: Category 1 - Purchased Goods and Services. Our members are chemical companies committed to making sustainability improvements within their own and their suppliers operations. 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. 29 March, 10:00-11:00 BST, Natasha Allard Alongside the CEO, Simon Boss, he leads on the firms commitment to ESG and, in particular, its pledge to become a carbon net zero business with a target for the firms operations to achieve net zero emissions by 2025. Brett points out that across the many companies they work with, Scope 3 emissions account for a surprising 90% of total emissions. This limited supply chain within the sector reduces competition and could reduce the opportunities the business has to cut the embodied carbon of their products. 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 . By creating a chemical industry-specific guideline, TfS is empowering suppliers and corporations to easily produce quality carbon footprint data for the first time. Exhibit 1 shows that based on annual GHG emissions reported for 2019 by three of the largest chemical companies BASF, Dow, and Solvay more than ~75% of their emissions are defined as Scope 3. sheet steel used to manufacture white goods. Alexis is responsible for advising on the Groups approach to carbon reporting, carbon reduction and climate strategy as well as data integrity. Prof. Dr. Peter Saling, Director Sustainability methods at BASF and lead of the TfS Guideline Work Package said: Until now, the chemical industry has lacked a common approach to calculating its Product Carbon Footprints. To view or add a comment, sign in Registers a unique ID that is used to generate statistical data on how the visitor uses the website. Guest Speakers: Rowan Adams, Executive Vice President, Corporate Affairs, and Anna Pierce, Director of Sustainability at Tate & Lyle. Webinar: ADDRESSING SCOPE 3 EMISSIONS TO ACHIEVE SCIENCE-BASED TARGETS Guest Speakers: Rowan Adams, Executive Vice President, Corporate Affairs, and Anna Pierce, Director of Sustainability at Tate & Lyle. 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. Some foreword thinking . This encapsulates more than just client service, but how Shoosmiths interacts with its clients, staff and communities. I consent to the use of following cookies: Necessary cookies help make a website usable by enabling basic functions like page navigation and access to secure areas of the website. TfS worked alongside global NGOs, corporate sustainability experts, chemical industry experts and organisations such as the World Economic Forum (WEF), and the World Business Council for Sustainable Development (WBCSD) to ensure global best practice for emissions accounting. Senior Fellow Scottish Leather Group, Transportation and Distribution Corporate GHG Emissions in the Chemical Sector Value Chain (WBCSD). 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. With around two-thirds of the chemical industry's global emissions in scope 3, companies are facing urgent pressures to reduce emissions in order to meet the Paris Agreement goals, set. Scope 3 emissions of purchased goods have historically been challenging to measure due to the complexity of chemical production - the new Guideline aims to solve this. Thus, in a way, Scope 2 emissions are a special kind of Scope 3 emissions, but they are counted separately due to historical reasons. Initial Scope 3 Screening Identification of relevant scope 3 categories. Exhibit 1. Unless you have one specific customer or end application, like a car, it is challenging to estimate the emissions coming from the use of your product once its sold on. 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. in lowering down of not only Scope 1 and 2 emissions from the chemical Environmental Sustainability Manager Scope 3 includes all other indirect emissions that occur in a company's value chain. The Guideline will be applicable across industries; it will be open source and useful for other industries using chemical materials. The last group of emissions under the GHG Protocol, Scope 3, however, presents a far bigger challenge for corporates and their treasurers. What is Scope 3 Carbon Accounting? If you have any questions or would like more information on our privacy policy and your rights, please contact info@tfs-initiative.com. A Scope 3 emission is any indirect emission that results from activities related to a company or organization. LEARN MORE>>>. 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. Companies should calculate emissions from all of their operations for Scope 1 and 2 categories. It is even more complicated if the product is combined with other products for final sale. With the ability to effectively calculate PCFs and more accurately measure Scope 3 emissions, the sector will be able to achieve tremendous climate ambitions whilst reducing exposure to climate risk.. Tracks the visitor across devices and marketing channels. For example, citric acid is one of many components found in household cleaners. The intention is to display ads that are relevant and engaging for the individual user and thereby more valuable for publishers and third party advertisers. Previously, Emma worked at Carbon Intelligence where she led delivery of strategic services. Where the mining industry stands. 1. World Resources Institute and Finance Sector Lead If you predominantly rely on toll materials, or you have a limited number of flagship products with clear end applications, taking a value chain view can often make most sense. In short, Scope 3 emissions have largely been neglected until now. However, estimating the PCF for citric acid has many challenges, from comparing biobased materials to calculating allocation schemes and varying uses of electricity. 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. 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. However, this will look different for every business in the sector. The Science Based Targets initiative This definition to a certain extent shifts the responsibility of those emissions away from the large chemical companies. Scope 3 are value chain emissions that result from use of soled products. Our 2022 Scope 3 Webinar Series follows on from three webinars the UN Global Compact Network UK hosted in 2020: Webinar: CATEGORY 1: PURCHASED GOODS AND SERVICES Guest Speaker: Dorothe DHerde, Head of Sustainable Business at Vodafone. 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. are not accessible. 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. There are pioneers and leaders within the Chemical sector, however no business has completely perfected it yet. handling. citric acid production. 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. 1 For financial institutions, other ways include the following (Economist, 2020): one, gauging . 12 May, 10:00-11:00 BST, Kim McCann Taking ownership of supply chain emissions. These emissions physically occur at the facility where electricity, steam, and cooling or heating are generated. It is a first-of-its-kind resource for the industry, drawing on commonly used international standards and guidelines such as ISO, the GHG Protocol and the Pathfinder Framework (PACT powered by WBCSD) while offering the specificity needed for the chemical industry.. Scope 3 includes emissions from your suppliers as well as consumers of your products and services (upstream and downstream activities). Employee commuting 8. "ADI Analytics work was so good it sparked a discussion with our cost estimators we eventually adjusted our numbers." 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. Scope 2 emissions are for purchase electricity, heat, and steam. Scope 3 emissions span 15 mutually exclusive indirect greenhouse gas (GHG) emission sub-categories: . The retailer will rent premises on the high street to sell clothes. As a result, he has developed a keen insight into, and understanding of, people, business culture and motivation which make him ideally placed to chair Shoosmiths partnership. 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. Overlaying the fact that scope 3 emissions are historically underreported, it is clear that scope 3 emissions is the biggest . Finally, Scope 3 emissions are all indirect emissions Put supply chain sustainability first if you want your business to thrive, Fashion business must look beyond textile swapping to achieve sustainability goals. The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes. This is much higher than both Scope 1 (emissions directly generated by . "Calculating Scope 3 emissions is particularly challenging in the chemical industry, due to the complexity of chemical production. Some examples are extraction and production of purchased materials, transportation of purchased fuels, use of sold products and services . Design Engineer (Sustainable Product Development) 1. Stephanie is also responsible for the Schroders ESG Accreditation framework, a set of criteria and processes which ensures the right levels of controls and accountability are in place to provide the robustness required to support the firms ESG integration ambitions. 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). We shall discuss some of the taxes and incentives to promote The Scope 3 Standard provides a methodology that can be used to account for and report emissions from companies of all sectors, globally. Nate has more than 15 years of experience working on industry, trade, energy, and climate in Asia, the U.S., and Europe. Scope 1 and 2 emissions together account for 36%. Consumer products containing chemicals can save energy use and help reduce carbon emissions, such as insulation, low temperature detergents, electric cars or components in wind turbines and solar panels. Emma is based in London. Scope 3 emissions are dominant in their overall emissions output. 11. The Scope 3 emissions are calculated by category in accordance with the guidelines of the GHG Protocol Standard (at least "minimum boundaries "). 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As Supply Chains Manager at the We Mean Business Coalition, Lydia works across net zero climate action and supply chains strategy. 2. We operate globally from offices across the UK, US, Netherlands and Nordics. Scope 3 emissions are the emissions of the remainder of the supply chain (minus electricity, i.e., Scope 2), of both upstream and downstream activities (Figure 1). You can find more information about the cookies we use on our Cookie Policy. By 2050, the LANXESS Group wants both its upstream and downstream supply chains to be carbon neutral. The data in this publication has undergone a quality assurance process and adjustments to reported ANZSIC . 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. Look at the guidance available, including: ISO14064-1, GHG Protocol, science-based targets (SBTi), CDP. A large number of chemical companies rely on raw materials that can only be sourced from a small number of countries, and suppliers, globally. Descriptive information . He works with financial institutions, industry associations, and other stakeholders to help them set Science-Based Targets for GHG emissions reduction. Descriptive information Company response Company name . Scope 3 encompasses indirect emissions, including those from supply chain partners in manufacturing and distribution. By measuring Scope 3 emissions, organisations can: While companies are now recognising the importance of addressing their Scope 3 emissions, action in this area must be scaled up to reach true net zero by 2050. Head of Distribution Zone Europe A Definition. At BASF, we create chemistry for a sustainable future . The Scope 3 emissions from the Chemical sector are significant and need to be addressed. Scope 2 accounts for Greenhouse Gas Emissions from the generation of purchase d electricity, steam, and heating/cooling. David Yankovitz, who leads the chemical group at the consulting firm Deloitte, says scope 3 emissions are on the minds of the industry's sustainability executives, but few firms have detailed . Owen Mumfords goal is to improve quality of life, encourage adherence to treatment and reduce healthcare costs. Calculate your Scope 3 emissions based on information specific to your supply chain and business. She holds qualifications from IEMA, CIBSE and the UN PRI. Browse our renowned blog, learn from our videos, and access the ADI newsletter archive for insights on oil & gas, energy, and chemicals. Scope 3 emissions are a consequence of the activities of the company, but occur from sources not owned or controlled by the company. Analytics cookies help website owners to understand how visitors interact with websites by collecting and reporting information anonymously. 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. 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. This will help you determine where to focus your carbon reduction efforts, and help to identify the individual levers you can pull to influence these key supplier groups. Working out who owns emissions in this scenario and how they get allocated is no mean feat. Read our Privacy and Cookies Policy here, Shoosmiths LLP is a leading UK law firm across 13 locations across England, Scotland and Northern Ireland. Consulting Director Alexis joined NatWest in 2021 as the Climate Reporting Manager for the Groups own operations. Set a net-zero or other decarbonisation targets and support your application to the Science . Sound a good fix? Additional Scope 3 emissions information is available in our response to Question 6.5 of our 2021 CDP Investor Survey response. ADI helps clients with multiple offerings led by our consulting services. Leverage your buying power to drive transparency For the average global company, upstream Scope 3 emissions are 11.4x higher than direct, operational emissions. Emma is based in London. The upcoming SBTi sector-specific guidance should provide some support on the reporting challenges, but businesses should not simply wait. 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. The firm also offers legal services for individuals and their families. 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. Scope 1 covers direct emissions from owned or controlled sources. We can help you work through your business context and take Scope 3 from simply a reporting requirement to a real, useful tool to support your decarbonisation journey. 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. Upstream Scope 3 emissions 1. Fuel and Energy-Related Activities 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. 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. sources. While this may seem like a daunting task, there are four key steps that major purchasers are taking to reduce Scope 3 emissions and encourage suppliers to embrace environmental ambition. By working collaboratively with cross-industry initiatives, we hope to build a more sustainable future.. emissions via collection programs, recycling, and alternative materials in the Abstract The use of materials, goods, and services is associated with greenhouse gas emissions. Registered in England no. Scope 3 (upstream) greenhouse gas (GHG) emissions constitute a major share of a chemical company's emissions. Scope 2 accounts for purchased power, such as electricity and heating. It harmonizes PCF calculation approaches across the industry and is applicable to the vast majority of chemical products. 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. ADI is a boutique consulting firm based in Houston, Texas and specializing in oil & gas, energy, chemicals, and industrials. Emma has extensive knowledge of the Greenhouse Gas Protocol and Scope 3 Standard, and co-authored the UK Green Building Councils Guide to Scope 3 Reporting in Commercial Real Estate. Contact us to learn more. Where . 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. Nestle, Stephanie Chang Guest Speaker: Dorothe DHerde, Head of Sustainable Business at Vodafone. Emma has extensive knowledge of the Greenhouse Gas Protocol and Scope 3 Standard, and co-authored the UK Green Building Councils Guide to Scope 3 Reporting in Commercial Real Estate. Scope 1 emissions are direct emissions from a company's operations. Scope 3 considers indirect emissions not owned by the reporting company but that affect the value chain. Cookies cannot read data off your hard disk or read cookie files created by other sites. As Scope 3 emissions usually account for more than 70 percent of a business' carbon footprint, it is crucial that companies tackle Scope 3 emissions to meet the aims of the Paris Agreement and limit global warming to 1.5C. Identify best practices for emissions accounting, with a focus on critical scope 3 categories for the industry. Tesco, Emma Watson While chemicals are fundamental to modern society and innovative breakthroughs,. 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. Industrial sectors, including the Chemical industry, represent nearly a quarter of UK emissions. It involves thousands of processes, products and specific technologies. 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. He works with financial institutions, industry associations, and other stakeholders to help them set Science-Based Targets for GHG emissions reduction. Used by Google Analytics to throttle request rate. Lloyds Banking Group. These so-called scope 3 emissions make a considerable contribution to the climate footprints of compa. However, 3 The industry's inherent growth adds to the challenge. Adding 18 billion of value to the UK economy, the Chemical industry is fundamental to modern society, underpinning global manufacturing supply chains, providing materials and products into a range of sectors from aerospace to pharmaceuticals, construction to consumer goods. Description of the company . Scope 3 emissions of purchased goods have historically been challenging to measure due to the complexity of chemical production - the new Guideline aims to solve this. This presents two significant challenges for the food and beverage industry: measurement and emissions reductions. Most companies' climate impact lies in their supply chains. Our corporate responsibility aspiration is to be the leading law firm in the UK famous for its positive contribution to society and as a signatory to the UN Global Compact this enables us to work alongside likeminded organisations for a greater collective good. As discussed above, Scope 3 emissions are indirect emissions, Matteo has joined Lloyds Banking Group from Vodafone UK, where he supported the business in setting the roadmap to deliver the 2025 sustainability targets, whilst reducing the company energy cost base. 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. Senior Manager, Net-Zero Previously, Emma worked at Carbon Intelligence where she led delivery of strategic services. Her work focuses on engaging and supporting high-impact companies to commit to and develop ambitious targets through the Science Based Targets initiative. including both upstream and downstream emissions. The last decade has been one of increasing corporate climate action and commitments; the next decade has to be one delivering against those commitments. 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. However, this may change as the SBTi are in the process of developing a Chemical sector pathway for setting SBTs. The most ambitious scope 3 targets are set using a science-based targets setting method. When you visit the Site again, the cookies allow us to recognize your browser. When you visit the Site again, the chief procurement officer may be the Scope! Premises on the DIMPACT forum an innovative industry initiative calculating carbon emissions for specific chemicals production, e.g the of! And cooling consumed by the German speciality chemicals manufacturer LANXESS 3 calculation from The large chemical companies need to address purchased materials, transportation of purchased materials, transportation of purchased electricity steam. 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