SCD: Henkel to engage packaging suppliers in bid to lower scope 3 emissions

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SUPPLY CHAIN DIVE reports:

Whereas a company’s scope 1 and 2 emissions relate to its directly owned, controlled or purchased assets, the U.S. EPA describes scope 3 emissions as resulting from activities not owned or controlled by the reporting organization — those upstream or downstream in its value chain.

In the U.S., the Securities and Exchange Commission notably left scope 3 reporting out of its recent climate risk disclosure rule, but regulators in other major jurisdictions like California and the European Union have opted to require such reporting. As such, data collection and sharing between customers and partners is increasingly important for showing progress toward sustainability goals and regulatory reporting.

Thus far, some smaller companies have had fewer resources to begin this work. “Compared to large companies, our small- and medium-sized partners often find it difficult to record their CO2 emissions as they lack the capacity to do so,” said Bertrand Conquéret, Henkel’s chief procurement officer, in the announcement. The program is designed “to support our suppliers directly and as individually as possible.”

The full post can be read here.