Is your business ready for Scope 3 reporting?

Tom Isler

Businesses of all sizes will need to report on their carbon emissions as part of mandatory regulations set out by the EU through the CSRD

According to research by Censuswide, two-thirds of UK companies are set to miss an upcoming Scope 3 emissions reporting deadline. 

We explore what this means for businesses with a focus on Scope 3, the one that can be the most significant and difficult to get right.  

What are the Scopes? 

The aim of Scopes 1-3 are to reduce greenhouse gas emissions (GHG’s). To be able to reduce your emissions and reduce your carbon footprint you need to know how much carbon you produce as an individual or a company.

The Carbon Trust defines the scopes as:  

Carbon Trust Scope definition

Scope 1 emissions are created directly through a business’ owned or controlled sources, Scope 2 emissions are indirect emissions from purchased energy, whereas Scope 3 relates to indirect emissions, such as transporting goods in the supply chain.  

Scope 3 emissions can make up 70-90% of the carbon footprint of a business and can rely on third parties, like us to report this for you. 

Scope 3 and how we can help 

Logistics is a key aspect for scope 3 emissions as they provide the indirect services to most businesses. If you currently employ a third party to move your goods, now is the time to start having a conversation on how they can help you with reporting emissions when moving your freight.  

To deliver accurate carbon reporting it is key to work with partners who work to the Global Logistics Emissions Council (GLEC) framework, the primary industry guideline in emissions reporting.  

Committed to supporting our customers to minimizing their environmental impact we have worked closely with the Smart Freight Centre, the organisation behind the GLEC framework, to understand carbon emission reporting and ensure we deliver accurate and concise data to our customers. 

Carbon reporting

From Multinationals to SME’s carbon reporting will impact everyone. 

From 2024, the EU Commission and UK Government will hold companies with 250 employees or more accountable to mandatory carbon reporting. The reporting will be based on the Scope Method, forcing larger corporations to meticulously record the footprint of each aspect of their operation.  

However, the mammoth size of this task means that the largest companies will be calling on each business large or small within that supply chain to assist in facing this new pressure and support with providing accurate reporting. If you are an SME supplying a large business that must comply with mandatory carbon reporting then you need to prepare a strong solution to support them through it. 

This is an opportunity to create a competitive advantage within your sector. Future-focused organisations will be able to stay ahead of the many predicted changes regarding climate change and satisfy consumer demands.  

We are here to help you stay ahead and guide you through the complexities of Scope 3 and carbon reporting. For more information on our services please visit our Sustainable Freight Network or get in touch now. 

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