ENERGY MANAGEMENT & SUSTAINABILITY
SCOPE FOR IMPROVEMENT
Scope 4 is the latest emission reporting standard to enter discussions within boardrooms across the globe. Now it's time for FM leaders to get acquainted with this next evolution of carbon reporting, says Biological Preparations.
Environmental action, sustainable change, and halting climate change are global challenges transcending industries and borders. To effectively protect the planet, we've surpassed country and industry self-governance, aiming for unified measures to achieve real change globally.
In their mission to unify all to commit to real measurable standards, the Green House Gas Protocol (GHG Protocol) in 2001 created Scope emission reporting.
Recap on established Scope emissions Since its inception in 2003, Scope reporting has provided businesses across all industries with a structured framework that allows for unified and accurate carbon reporting. Scope 1 and 2 reporting, mandatory for UK businesses to report on, provide clear guidance for business to measure their CO2e footprint. Scope 1 reporting is the direct emissions from a business (e.g., from company vehicles), and scope 2, broadens businesses' CO2e reporting to include indirect emissions from energy suppliers. While crucial, these scopes collectively account for 5-20% of GHG emissions.
To address the broader impact, Scope 3 was introduced, quantifying further indirect emissions associated with the outside of their business, e.g. suppliers. Overall enhancing businesses' environmental accountability, so they can further contribute to significant GHG reductions.
Now, there is a new Scope emission that businesses should be aware of when looking at their carbon footprint; it's time to introduce Scope 4 emissions.
Introducing Scope 4 emissions Unlike the recognised Scope Emissions, Scope 4 lacks official acknowledgment from the GHG Protocol; instead, it is commonly known as 'Avoided Emissions', a term coined by the World Resources Institute (WRI) in 2013, a GHG Protocol co-founder. This distinction occurs due to
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the unique nature of Scope 4 emissions. While Scopes 1, 2, and 3 focus on quantifying and reducing CO2e footprints, Scope 4 reporting serves a different purpose. Its objective is to showcase how a product or service can prevent emissions, emphasising on avoidance over reduction. Imagine Scope 4 as a comparison calculator, quantifying the carbon avoidance that business will have by comparing like-for-like products/services. The consumer will then benefit from that Scope 4 metric, as it will cause a reduction in their Scope 3 emissions.
Through the introduction of Scope 4, users of that new technology/process will gain an easier way to make better informed decisions when strategising to reduce their Scope 3 emissions.
A quick example of Scope 4 Using virtual technology reduces a business’s CO2e from a lack of commuting, whether it’s working from home or hosting remote events can save individuals and businesses significant GHG emissions. There are more examples to view here.
Why do we need Scope 4 reporting?
Its benefits Addressing our global environmental impact is a collective effort involving businesses, government, and consumer demands. While Scope 4 reporting is still in its early stages, its benefits are evident for all stakeholders these are:
• Further transparency: Using avoided emissions aids businesses in establishing benchmarks and setting realistic reduction goals, crucial for effective sustainability strategies.
• Encourages innovation: Scope 4 reporting motivates organisations to update practices and continuously commit to sustainability.
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