Volts What's the deal with "scope 3" emissions?
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Mar 20, 2024 Explore the complexities of disclosing Scope 3 emissions and the recent SEC decision. Learn about the significance of Scope 1, 2, and 3 emissions in corporate reporting and the challenges faced by businesses. Delve into the impact of Scope 3 emissions on businesses like Apple and the importance of data collection. Understand how Scope 3 emissions influence decision-making for consumers and investors, and the regulatory risks related to climate action in the US.
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Scope Emissions Explained
- Scope 1 emissions are from on-site fossil fuel combustion (trucks, furnaces).
- Scope 2 covers emissions from electricity usage, while Scope 3 includes indirect emissions like supply chains and product disposal.
Origin of Scope Framework
- The Scope framework originated from the 1992 Rio Summit and aims to standardize corporate emissions accounting.
- The Greenhouse Gas Protocol, formed in 1998, introduced Scopes 1, 2, and 3 in 2001 for better consistency.
Ford and GM's Scope 3
- Ford and General Motors voluntarily report to CDP, and their Scope 3 emissions represent 99% of their total emissions.
- This is largely due to emissions from the use of sold products (cars).