4 is the magic number!
In the quest for sustainable business growth, the way we measure greenhouse gas emissions is evolving with the announcement of a new ‘scope’ created by the World Resources Institute.
Let's take a second to recap the basics:
Read more: Scopes 1,2 and 3 explained
Carbon emissions are typically measured and categorised into three ‘scopes’ under the guideline and framework of the Greenhouse Gas Protocol:
Scope 1 (BURN) Covers direct emissions from owned or controlled sources such as a company vehicle.
Scope 2 (BUY) Covers indirect emissions from purchased electricity, steam, heating, and cooling.
Scope 3 (BEYOND) Currently covers all other indirect emissions that occur in a company's value chain.
While these three scopes serve as a foundation for understanding a company's carbon footprint, there's a growing belief that we need to go even further. This is where the new category “Scope 4” comes in.
What are Scope 4 Emissions?
Scope 4 refers to the emissions avoided due to a company's products or services. Instead of focusing on the greenhouse gases a business emits, Scope 4 instead evaluates the emissions it helps to prevent.
In simple terms, it's about examining how our business activities or investment choices can lead to reduced emissions over time.
Examples:
Digital Content Providers: If your business creates digital content, such as eBooks, digital magazines, or online courses, you help avoid emissions associated with the production and transportation of physical books and their materials. The Scope 4 emissions in this case are the carbon emissions avoided by consumers using your digital content instead of physical versions.
Car Sharing: If your business offers a car-sharing service, you provide a low-emissions alternative to each individual owning and using a car. The Scope 4 emissions would be the emissions avoided by multiple people sharing the same vehicle instead of each one driving their own.
Eco-tourism Businesses: As an eco-tourism operator, you might offer travel experiences that have a minimal impact on the environment. This could include camping in renewable energy-powered tents or offering local food that doesn’t require long-distance transportation or food miles. The Scope 4 emissions are the avoided emissions from more traditional tourism practices.
It’s important to remember that Scope 4 is still in its infancy. Unlike Scopes 1-3, there are no globally recognised standards for quantifying and reporting Scope 4 emissions as of yet. But hope is on the horizon with emerging frameworks like the Comparative Emissions Working Paper from the World Resources Institute, and the Avoided Emissions Framework from Mission Innovation aiming to guide businesses through this uncharted territory.
With climate-conscious businesses gaining momentum, at CarbonNow we expect to see increasing demand to disclose avoided emissions. However, while Scope 4 metrics bring exciting opportunities, they must be supported by robust and transparent methodologies and should complement rather than replace traditional emissions measurements.
Scope 4 is not just an additional layer of environmental accounting, but a necessary step in comprehensively assessing our climate impacts. It brings us closer to a holistic understanding of our efforts against climate change, allowing us to recognise, measure and reward positive impacts where they occur.
The journey to carbon neutrality starts with Measuring your carbon footprint and that's where our Carbon Audit can help. Let us do the hard work and categorise your emissions for you! Get in touch to arrange a no-obligation call, today. Drop us an email hello@carbonnow.co.uk
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