TECHNICAL
New European standards, which will become mandatory for all large companies, not only require measurement and reporting, but also require an independent auditor to validate the figures.
n Transportation of purchased fuels n Emissions from product use on client’s side n Emissions from the disposal of products n Employee travel and commuting n Outsourced activities n Waste disposal The importance of a sector- wide approach and accurate approximations New European standards, which will become mandatory for all large companies, not only require measurement and reporting, but also require an independent auditor to validate the figures. Supply chain reporting must be detailed and consumption across the supply chain must be examined. As part of this, calculating scope 1, 2, and 3 is becoming mandatory. That means companies need to provide environmental data to their customers, who can integrate this into their scope 3 emissions reporting. Furthermore, addressing scope 3 emissions can often lead to significant opportunities for reducing a company’s overall carbon footprint, promoting sustainable practices across its supply chain, and may also lead to innovation and improved collaboration with suppliers and customers. Scope 3 often represents the largest portion of a company’s total carbon footprint. Comment: Even with manufacturing activities, scope 3 remains the main part. Measuring scope 3 emissions can be quite challenging due to the lack of direct control over relevant activities and the need to gather data from multiple sources, often outside a company’s direct influence. Because CSRD reporting will soon be mandatory, it is essential that companies and the sector act fast. Accurate, timely and fact-based approximation will be an important accelerator. In most cases, organisations in a value chain are buying and selling to other organisations in the same value chain. Therefore, to calculate scopes, each organisation needs to: n Obtain data from other organisations within the value chain or use external recognised data. n Provide data to other organisations within the value chain.
Scope 3, the most complex and often the largest share of a company’s carbon footprint, refers to: n Upstream (related to what the company purchases) n Downstream (related to how the customers use or dispose of the products, until the end of life)
This needs to be done instantly and accurately. Only a sector-wide approach can make this happen.
* Carbon Disclosure Project
Environmental Product Declaration (EPD)
Upstream Activities n Purchased goods and services n Capital goods n Fuel- and energy-related activities (not included in scope 1 or 2) n Upstream transportation and distribution n Waste generated in operations n Business travel n Employee commuting n Upstream leased assets Downstream Activities n Downstream transportation and distribution n Processing of sold products n Use of sold products n End-of-life treatment of sold products n Downstream leased assets n Franchises n Investments Examples of Scope 3 emissions n Emissions from the extraction and production of purchased materials and fuels
Eventually, to provide data to other organisations, the EPD methodology is to be used. However, this requires more time than the FTTH sector can afford. The GHG protocol and the Life Cycle Assessment (LCA) methodology (which is used to build an EPD) both provide carbon emissions that consider the entire lifecycle (from material extraction to end of life). Scope 1, 2 and 3 of the GHG Protocol is more expansive than EPD. However, it is not all that different if we consider it as a calculation at company level, including all products, while EPD is carried out at the product level. Assuming a certain homogeneity in the manufactured products or services for a given organisation, emissions from the GHG Protocol – albeit related to a single product - can be considered as an alternative to LCA to provide an accurate first approximation. Any organisation can calculate the environmental footprint of their products using an EPD methodology. However, implementing EPD methodology takes long, can be expensive when sub- contracted, and is not mandatory. As a result, it will take quite some time until all offerings are accompanied by an EPD.
May 2024 Volume 46 No.2
95
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