On scope 3 emissions, the time for action is now transcript
Emma Cox - Global Climate Leader, Partner, PwC United Kingdom
The race to net zero can feel like a marathon, with plenty of hurdles along the way as companies work to make meaningful change. But sometimes, it’ s taking incremental steps that will get you where you need to go.
One of those challenges is to better understand your company’s Scope 3 emissions. To track your Scope 3 emissions, you need to start by understanding what your footprint is.
Once you do that, you may get some surprises. You may find that more of your emissions are in one part of your supply chain than you ever realized.
It’s not enough just to know your Tier 1 suppliers or those most directly associated with you. You may need to go all the way back up your value chain to understand where your emissions really lie. And then you need to work out how you can take steps to work with your suppliers to take carbon out of the supply chain.
And often that has a beneficial impact on your business as well, because taking carbon out can also take cost out.
There are companies on this Scope 3 journey now who are taking real action. I sat down with Elisabeth Brinton, Corporate Vice President of Sustainability at Microsoft, to talk about the issue.
Emma Cox:
Can you tell me a little bit about your ambition at Microsoft and how you’re seeking to tackle this?
Elisabeth Brinton, Corporate Vice President Sustainability, Microsoft:
Really, really focused on practicality. It starts with creating a baseline, understanding, and measuring. So Microsoft has been on a decade-long-plus journey with this. So, one of the first things we recognize in terms of Scope 3 are indirect emissions, starting with our supply chain, so the inputs coming in. So we worked on contracting and procurement.
And it helps them, helps us, and then we can apply our technology. So we think of ourselves as “customer number one.” And then now, you know, looking at the larger value chain and including circularity, that's a bigger challenge.
But it’s, again, it starts with data, tackling, creating a baseline, and then working a practical path forward.
Emma Cox:
Big ambitions. What do you think have been your biggest challenges so far?
Elisabeth Brinton:
The biggest challenges, I think, are just, it’s actually not behind us, but it’s in front of us. And so, I think the key thing is mindset, not being daunted.
And so one of the things that is key to finding solutions is having a solution mindset, where you’re incorporating innovation and you see the opportunities around Scope 3 as a place of differentiation for your business model, innovation, opportunity, so it’s turning it around.
And then, when you turn it around and are inspired, actually, that’s when the practical solutions begin to unfold because you’re bringing that inspired thinking as opposed to a fear-based mindset.
And that to me is the future of sustainability. It’s not zero sum. It’s actually recognizing that this is a multiple bottom line and it’s great for business.
Emma Cox:
Tackling Scope 3 can’t be done alone. It’ll take ongoing conversation and collaborative action right across sectors and industries.
And while it may feel complex, it’s also a powerful lever for business leaders looking to understand their impact and work together to decarbonize.
