[CDx Launch Session Summary] Fishbowl 9: Addressing Scope 3 Emissions in the Supply Chain

The session on addressing Scope 3 emissions in supply chains explored the critical challenges and strategies for tracking, reducing, and reporting these indirect emissions. Liam Salter of Reset Carbon emphasized the importance of building a business case for supplier participation and ensuring robust data quality to effectively measure and reduce emissions. Hang Tran from Allotrope Partners highlighted how local regulations, such as those in Vietnam, are shaping Scope 3 emissions reporting and encouraging companies to align with global standards like the GHG Protocol.

Dr. Shabbir Gheewala, Professor, Joint Graduate School of Energy and Environment, KMUTT, noted supplier hesitancy in sharing sensitive data such as production costs and logistics details, while stressing the need for transparent methodologies, including recycling and material tracking, to improve data reliability. Barry Jones of Lock23 advocated for building robust internal carbon accounting systems to integrate emissions data into financial decision-making, emphasizing the role of primary data collection and reverse engineering to improve accuracy.

Best practices discussed included employing value-sharing models to incentivize suppliers, leveraging technology for real-time emissions tracking, and conducting supplier training to align decarbonization efforts. The discussion underscored the importance of harmonized reporting frameworks, with participants citing inconsistencies between international standards like the GHG Protocol and ISO 14097 as a significant barrier to uniform reporting.

Key Takeaways

· Supplier Collaboration: Building strong relationships and providing financial or value-sharing incentives are critical for motivating suppliers to track and reduce emissions.

· Standardized Reporting: Aligning with global frameworks such as the GHG Protocol can improve consistency, but efforts must address regional differences in standards.

· Data Transparency: Reliable data collection requires transparent communication and the use of tools like life cycle assessments (LCAs) and real-time tracking systems.

· Internal Carbon Accounting: Robust internal systems are essential for integrating emissions data into decision-making and supporting supplier engagement.

· Industry-Specific Strategies: Tailored approaches are necessary to address the complexities of different supply chains, such as material-based tracking in manufacturing or real-time monitoring in technology.

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