Tracking Scope 3 emissions and analyzing their impact on climate transition goals

Abstract

Context: Scope 3 emissions often represent the largest part of an organization’s carbon footprint. However, organizations face major difficulties when accounting for value chain emissions preventing them from effectively managing Scope 3 emissions and reducing them. Goal: The goal of this study is to mitigate some of the challenges faced by organizations when accounting for Scope 3 emissions such as the lack of guidance by providing clear guidelines and a practical implementation example on how to collect, track over time, and analyze value chain emissions. Method: The work was conducted in collaboration with a telecommunication company and consisted of using the Design Science Research Methodology (DSRM). The study involved relevance, rigor, and design cycles to design the desired artifacts. Result: Two main artifacts were designed in the study. First, a five-step generic framework was established aiming to guide reporting companies on how to effectively track Scope 3 emissions and adjust climate transition goals accordingly. Second, a software tool was developed as a Proof of Concept (PoC) which implements the framework and assesses the impact on the climate transition goals of the industry partner of the study. Conclusion: The study emphasizes the importance of supplier engagement in effectively collecting value chain emissions and achieving climate transition goals. Moreover, the study suggests adopting data-driven approaches for collecting and managing Scope 3 data.