![]() Even when companies have the right expertise, they often lack the organisational structure and processes to oversee the estimations, quantification and extrapolation of Scope 3 data in multiple parts of the business.But when companies lack the necessary statistical expertise, the result is unreliable data. Extrapolating results from a small sample of suppliers is a common (and useful) approach to estimating Scope 3 emissions.(Spend-based modelling, for example, relies on industry-average emissions factors and thus doesn’t necessarily reflect the actual emissions footprint of a given company.) What’s more, an overreliance on modelling can tempt managers to pay more attention to the model and its assumptions than making real improvements to Scope 3 emissions-particularly when executive rewards are tied to the model’s output. Scope 3 modelling approaches, such as one based on product spend with a given supplier, may not be detailed enough to support better management decisions or identify distinct opportunities for a company to lower carbon emissions. ![]() Because companies that rely very heavily on third-party sources often aren’t involved in the Scope 3 calculations themselves, they may struggle to understand their own Scope 3 footprint-and thus improve it.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |