The purpose of this post is to refresh/restate to all small to mid-sized enterprises (SMEs) the opportunity that Net Zero / Scope 3 presents for you.
Refresh on Scope 1, 2 and 3 Definitions:
- Scope 1 – The direct carbon emissions from owned or controlled sources (ie, the business operation)
- Scope 2 – Indirect emissions from generation of purchased energy (ie, the carbon produced by your local utility to provide your electricity)
- Scope 3 – Indirect emissions that occur in the value chain of the reporting company (15 different categories including vendors, distribution, leased assets, business travel, et cetera)
Refresh on Carbon Neutrality v Net Zero
- Carbon Neutrality includes Scope 1 and 2
- Net Zero includes Scope 1, 2 and 3
Restating the opportunity:
- All public companies have either stated their Net Zero plans, or will be forced by government regulations to do so
- Every company that has a Net Zero plan is going to need its Scope 3 providers (ie, its vendors) to have a sustainability / carbon program
- As the video in this article discusses, Scope 3 is VERY hard to quantify. Companies are struggling with getting their value chain, including their vendors, to develop programs and provide the needed information
- If your SME is looking to sell to larger companies….and if you were certified sustainable, including having a carbon reporting program….your ability to take market share would be materially enhanced
If you want to get ahead of this and take market share, contact us.