How to reduce and report downstream Scope 3 emissions.
Every year, around 13 percent of food produced is lost between harvest and retail. According to the Food and Agriculture Organization of the United Nations (FAO), food waste and loss is responsible for up to 10 percent of all human-caused greenhouse gas emissions each year. This is roughly the same amount of emissions as the aviation industry. In the United States, the production of wasted food generates the equivalent of 32.6 million cars’ worth of greenhouse gas emissions.
When food is discarded, all of the inputs used to produce, process, transport, prepare and store it are also wasted. Production, transportation, and handling of food generate significant Carbon Dioxide (CO2) emissions. When food ends up in landfills, it generates an even more potent greenhouse gas (GHG) — methane.
Categories Explained: Definitions & Examples
Greenhouse gas emissions are divided into four categories – Scope 1, Scope 2, Scope 3, and the voluntary reporting category, Scope 4. Each category indicates the degree to which an organization is capable of influencing the reduction of greenhouse gases. This scope system was developed by the World Resource Institute through the Greenhouse Gas Protocol.*
SCOPE 1
- Definition: “Direct” emissions caused by operating the things a company owns or controls.
- Example: Can be the result of running machinery to make products, driving vehicles, heating buildings or powering computers.
SCOPE 2
- Definition: “Indirect” emissions created by the production of the energy that an organization buys.
- Example: Installing solar panels or sourcing renewable energy rather than using electricity generated using fossil fuels would cut a company’s Scope 2 emissions.
SCOPE 3
- Definition: “Indirect” emissions generated throughout the upstream and downstream activities in a company’s value chain.
- Upstream: Produced by supply chain partners that source, produce and transport the raw materials and components that companies use.
- Downstream: Emissions related to a company’s sold or discarded product, including additional processing, transportation and disposal.**
SCOPE 4
- Definition: “Avoided” emissions, referring to the emission reductions that occur as a result of the product/service itself.
- Example: Introducing a more energy-efficiency battery that reduces a consumer’s need to charge it, and as a result, reduces electricity and emissions over time.
Scope 3 Challenges: Measurement & Reduction
Measuring Scope 3 emissions can be difficult.
Scope 1 and 2 emissions are relatively simple to measure and control with companies able to take steps such as switching to renewable energy or electric vehicles. But Scope 3 emissions are affected by decisions made outside of the company. Their measurement spans the entire value chain and often depends on where the company gets its supplies and where it sells its products and services.
While Scope 3 emissions fall outside of an organization’s direct control, it is still possible to do something about them, according to the United States Environmental Protection Agency (EPA). According to a recent EPA report: “The organization may be able to influence its suppliers or choose which vendors to contract with based on their practices.”
Cutting emissions across all scopes.
Companies are under increasing pressure to track and cut emissions across all scopes. In addition to explaining sustainability efforts to investors, customers, and partners, today’s companies are taking bigger steps toward reaching internationally agreed upon targets on global warming.
Despite the complexity of measuring and reducing emissions, more companies are being compelled to do so. It’s promising to see that collecting, measuring, managing and reporting on value chain GHG emissions is becoming business-as-usual.
Simplifying Scope 3: Resources
Tools to reuse, recycle for reducing Scope 3 emissions.
There are more resources than ever for companies wanting to report and reduce their Scope 3 emissions — resources like Green Field Solutions (GFS).
Green Field Solutions scientifically and systematically reduces global food waste and its environmental impact. We do this by creating value for otherwise discarded or under-utilized food by-products and recycling materials. As a result, our clients are making significant GHG reductions on their downstream emissions-producing activities.
In 2023, GFS repurposed more than 1.2 billion pounds of food by-products and recyclables from some of the largest U.S. consumer product goods companies (CPGs). The food residuals that GFS diverted from landfills supplemented the diets of livestock and pets around the world. That’s a diversion of nearly 325,000 tons of carbon dioxide (MTCO2e) and 39,000 tons of methane (CH₄).
By partnering with Green Field Solutions, some of the world’s largest food manufacturers are contributing to a greener planet and a more secure global food source. Our commitment to researching and discovering the best economic and sustainable use for our clients’ food by-products and recycling is at the same time a commitment to reducing food waste, cutting emissions, and improving sustainable food production.
Have questions about Scope 3 emissions? Get in touch.
*Source: https://www.wri.org/initiatives/greenhouse-gas-protocol
**Source: World Economic Forum
