Kavan Choksi on Scope 3 Emissions and How It Affects Your Business

Scope 3 emissions, which are greenhouse gas emissions produced inadvertently, account for a significant portion of companies' indirect emissions. So, Kavan Choksi believes lowering them is critical for brands to meet sustainability targets. But first, it would be best to know more about them.

 

What are Scope 3 Emissions?

Scope 3 emissions result from activities carried out on assets that the reporting organization does not own or control but indirectly impact its value chain. They include all sources that do not fall within an organization's scope one or scope two boundaries, such as garbage collection, purchased goods, and other services. Kavan Choksi believes it is critical to control scope three emissions because a company's upstream and downstream operations account for most of its emissions.

 

Why Do You Need to Pay Attention to Scope 3 Emissions?

Kavan Choksi believes scope three emissions impact many businesses across all industries, from retail and financial services to aviation and healthcare. Moreover, the reduction of scope three emissions is emerging as one of six vital corporate targets, so many companies are focusing on environmental, social, and governance goals.

 

Scope 3 emissions are produced indirectly and are likely to be tremendous. Because of this, Kavan Choksi believes it will be critical for brands to achieve their sustainability goals, benefiting a greener business environment for the broader society. Additionally, it is worth noting that, despite their ambitions to reduce scope 3 GHG emissions, many consumer-focused companies will fall behind in this challenge because these are the most complex emissions to manage, as they rely on both consumer and supplier actions.

 

How Can Your Business Manage Your Scope 3 Emissions?

Set the goal, assign responsibilities, and devise a strategy.

Kavan Choksi believes managing your scope three emissions starts with developing an actionable decarbonization goal. Therefore, it would be best to consider costs, hold P&L owners accountable, and agree on a value-linked structured plan when setting your objectives.

 

Avoid relying on others, and collaborate with them instead.

Instead of depending on the efforts of others, Kavan Choksi believes it is best to establish partnerships and communicate with relevant stakeholders to be successful in managing your organization's scope three emissions. Help your suppliers and customers succeed by controlling what you can and assisting them where necessary.