Scope 3 emissions accounting

With the growing urgency to combat climate change, companies are actively exploring various strategies to reduce greenhouse gas (GHG) emissions. While many focus on reducing direct emissions from their operations (Scope 1) or indirect emissions from purchased energy (Scope 2), they often overlook the significance of Scope 3 emissions. Scope 3 emissions, which can contribute to 70% or more of a company’s total carbon footprint based on data from the UN Global Compact1 ,provide a comprehensive picture of an organisation’s climate impact. Scope 3 covers a wide range of activities, from upstream supply chain to downstream sold product usage and disposal, making Scope 3 emissions accounting a critical yet challenging area to address.

1The world’s largest voluntary corporate sustainability initiative. For more information, please visit https://unglobalcompact.org/

  • Industry Benchmarking

    Recognising that different industries face unique Scope 3 challenges, GreenCo helps clients conduct in-depth peer benchmarking to identify the most material emission categories relevant to their sector. For example, manufacturing companies may focus heavily on emissions from raw material sourcing, while service-based industries might prioritise business travel and employee commuting. By identifying these key areas, GreenCo ensures clients gain a clear understanding of their value chain and can strategically allocate resources to collect relevant data.

     

  • Overcoming Scope 3 Emissions Challenges

    Despite their importance, Scope 3 emissions are notoriously complex to account for due to the diversity of activities and stakeholders involved. Data availability, varying methodologies, and supplier engagement often pose significant challenges for companies attempting to account for these emissions. Leveraging years of experience in ESG consulting, GreenCo helps clients navigate these complexities with tailored solutions.

    GreenCo adopts a systematic approach by first understanding the company’s operational model and key business activities. For instance, GreenCo assists clients in identifying the most relevant and emission-intensive procurement items for Category 1 (Purchased Goods and Services), prioritising data collection efforts for these items. GreenCo considers the scale of the company and selects the most appropriate calculation methods recommended by the GHG Protocol. Additionally, GreenCo develops customised data collection tools to streamline the process and reduce the burden of data collection.

     

  • Turning Insights into Action

    At GreenCo, understanding emissions is only the first step. Our team goes further by providing actionable insights and strategic guidance to help clients integrate Scope 3 considerations into their broader climate strategies. This includes setting science-based targets and developing supplier engagement programs for the company to reduce emissions across its value chain. These efforts not only help companies achieve their climate goals but also position them as leaders in sustainability.

    GreenCo is committed to empowering companies in their journey toward comprehensive Scope 3 emissions accounting. With GreenCo’s support, businesses can achieve sustainability goals, enhance stakeholder confidence, and contribute meaningfully to global climate action.

About GreenCo

GreenCo is a professional ESG advisory firm accredited with ISO 9001 in ESG Reporting and Climate Policy Advisory Services. Established in 2016, we were born to tackle ESG and climate risk management challenges. GreenCo has a professional team consists of talents with multiple backgrounds with

  • PhD
  • Practitioner Member of the Institute of Environmental Management and Assessment (IEMA)
  • CFA (the CFA Institute) and Certificate in ESG Investing
  • EFFAS Certified ESG Analyst (CESGA)
  • Completion of Certified GRI Training Programme
  • Certified Public Accountant (for assurance in accordance with ISAE 3000)
  • Member of Global Association of Risk Professionals
  • Master’s degree in envirnomental science

GreenCo has solid track record in ESG advisory for over 60 listed companies in Hong Kong, Mainland China, Singapore and Korea, covering all industries under the Hang Seng Industry Classification System.

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