By now, your 2024 planning should be nearly done and soon you will be into another year, trying to meet your goals.
Will Scope 3 help or hurt your 2024 effort?
Background –
- By the end of this year, over 50% of the world’s economies will have sustainability laws with teeth (ie, with fines)
- The EU has its laws in place
- In the US, California has 253 and 261 and the SEC is expected to have its law, which is expected to mirror the EU law, published by the end of this year (within the next six weeks)
- All of these start with public companies and progress, over time, to smaller (non-public) companies
So, if you are a non-public company, why should you care?
Answer: Scope 3
The carbon emissions your company produces in its day to day operation is its Scope 1. The emissions your utility provider produces to create your electricity, is your Scope 2. And there are 17 things like vendors, clients, travel, CapEx, product end of life (for batteries, computers, et cetera), et cetera, that orbit your company and make up Scope 3.
Now we get to the reason for this email:
- Many of those big public companies will need to include their Scope 3 as part of their submittal. This means they will need their vendors to have a legitimate (ie, certified/verified) sustainability and carbon program.
- Also, any company that has publicly made a Net Zero pledge (ie, “We will be Net Zero by 2030”) MUST have its Scope 3 vendors along for the ride.
Vendors are already receiving Scope 3 letters from their clients. This is the first step in a process that leads to a decision – become sustainable (and have a carbon program) and stay a vendor or choose not to and get terminated.
Some organizations will see this as a royal pain in the backside, while others will see it as an opportunity to differentiate and take market share.
If this might be of interest, watch this master class then contact us.
You will be doing the right thing….and good things will happen!