The concept of Scope 4 emissions, often referred to as “avoided emissions,” is gaining traction alongside the traditional greenhouse gas emission categories outlined by the Greenhouse Gas Protocol (GHG Protocol). TEAM Energy delves into the significance of Scope 4 emissions, their integration into an organisation’s Carbon Reduction Plan, and offers eight best practices for effective Scope 4 emissions reporting.
What are Scope 4 Emissions?
Scope 4 emissions refer to the greenhouse gas (GHG) emissions that are avoided as a result of using a specific product or service. Unlike Scope 1, 2, and 3 emissions, which focus on direct and indirect emissions stemming from an organisation’s operations and supply chain, Scope 4 emissions underscore the positive impact of an organisation’s offerings in reducing overall emissions. They encompass:
Avoided Emissions: These emissions are calculated based on the environmental impact of a product or service throughout its lifecycle. For instance, while reusable water bottles may initially require more resources, they significantly lower emissions over time by reducing the need for single-use plastic bottles.
Facilitated Emissions: This aspect relates to avoided emissions and occurs when professional services firms assist in managing emissions. For example, an engineering firm can optimise building designs with innovative low-carbon materials, thus reducing operational and embodied emissions.
Advised Emissions: These emissions arise when professional services firms help clients with projects that affect their GHG footprint. For instance, legal support for fossil fuel projects may increase advised emissions, whereas compliance assistance for renewable energy projects tends to reduce them.
Advertised Emissions: This category includes emissions resulting from increased sales due to advertising efforts. Effective campaigns for high-emission products can raise Scope 4 emissions due to heightened production demands, while promoting low-emission alternatives can encourage more sustainable consumer choices.
The Role of Scope 4 Emissions in Your Carbon Reduction Strategy
Reporting avoided emissions should be a standalone process and should not alter the calculations for Scopes 1, 2, or 3. The disclosure of avoided emissions is best suited for informing product or policy design rather than indicating climate mitigation success. According to the Science-Based Targets Initiative, these emissions should not be included in either short-term or long-term reduction targets.
How to Measure Scope 4 Emissions
Identify Relevant Products or Services: Determine which products or services contribute to emission reductions, such as energy-efficient appliances or renewable energy solutions.
Calculate Avoided Emissions: Use standard methodologies, like life cycle assessment (LCA), to measure the emissions avoided by using your product compared to a baseline scenario.
Verify and Report: Ensure third-party verification of your calculations to enhance credibility, and report findings transparently, detailing methodologies and assumptions.
Various frameworks, including the GHG Protocol and ISO 14069, define and calculate avoided emissions. These emissions offer transparency and highlight an organisation’s contributions to low-carbon initiatives. However, challenges in reporting avoided emissions include measurement complexities, high initial costs, a lack of standardisation, and the risk of greenwashing.
Avoided Emissions vs. Reduced Emissions
It’s essential to differentiate between reduced emissions resulting from an actual decrease in an organisation’s GHG emissions following a carbon reduction plan and avoided emissions, which compare a low-carbon product or service against a reference scenario.
Best Practices for Managing Scope 4 Emissions
As organisations navigate the complexities of reporting Scope 4 emissions, several best practices have emerged to ensure accurate calculations and disclosures. These practices enhance transparency and improve the integrity of environmental reporting:
Prioritise Scopes 1, 2, and 3 Emissions: Develop a solid Carbon Reduction Strategy before exploring Scope 4 emissions reporting.
Establish a Clear Baseline: Create a baseline for the emissions linked to your products or services to accurately assess the avoided emissions.
Conduct Life Cycle Assessments (LCA): Perform thorough LCAs to assess the overall environmental impact of your products, including alternatives.
Analyse Market and Consumer Behaviour: Understand how your product performs against alternatives by evaluating consumer trends and preferences.
Utilise Advanced Modelling Techniques: Use modelling tools to forecast potential avoided emissions based on different scenarios and product use.
Implement Regular Monitoring: Continuously track and update emissions data to reflect changes in product usage and market conditions.
Engage Stakeholders: Involve stakeholders in the reporting process to enhance accuracy and automate emissions data.
Report with Transparency: Clearly outline your methodology, assumptions, and results in sustainability reporting to foster trust among stakeholders.
