Determining emissions stemming from a company’s value chain beyond its direct operations and energy consumption necessitates a structured and consistent methodology. This methodology encompasses protocols, standards, and frameworks designed to quantify indirect greenhouse gas emissions. These emissions arise from sources the reporting company does not own or control, but are linked to its activities. Examples include emissions associated with purchased goods and services, business travel, employee commuting, waste disposal, and the use of sold products. The application of standardized procedures ensures transparency and comparability across different organizations.
Accurate quantification of these emissions is crucial for comprehensive environmental reporting and effective emissions reduction strategies. It enables organizations to identify key emission hotspots within their value chains, prioritize reduction efforts, and track progress against emission reduction targets. Historical context reveals an increasing emphasis on this area as stakeholders, including investors, customers, and regulators, demand greater accountability and transparency regarding environmental impact. This focus drives organizations to adopt robust methodologies to assess and manage their extended environmental footprint.
