Quick Guide to Value Chain Emissions in Your Business

These days the term “greenhouse gas footprint” is becoming more popular. Roughly 75% of the global greenhouse gas footprint is tied to energy use- or essentially, combustion of fossil fuels for industry, transportation, and facilities. While sources of “direct” emissions are commonplace (i.e. gas stoves, vehicles, or HVAC systems), “indirect” sources of emissions are typically much more removed from daily business operations.

It's fairly simple to calculate the emissions for activities like driving. But what about the goods- and especially services- that we purchase for our businesses? These emissions are referred to as “Scope 3” or “value chain” emissions. These emissions sources are less obvious, but that doesn’t mean we shouldn’t still account for them. In fact, Scope 3 emissions often make up the vast majority (75% or more) of a business's total greenhouse gas footprint!

For example, here is a short list of some services your businesses may utilize, and their associated emissions factors.

USEEIO database

These services rarely have direct emissions associated with them, but rely on other businesses, software, banking systems, etc to deliver. To account for these services, spend-based emissions factors are used in lieu of specific quantities of fuel consumption. Scope 3 emissions pertaining to services are more difficult to minimize. But using a consistent measurement methodology allows you to baseline performance and get conversations going with your suppliers. Whenever possible, and as maturity grows, using direct emissions calculations is the best-case scenario.

Spend-based emissions factors were calculated using Input-Output models, which are life cycle models of goods and services in the US economy- also known as the acronym USEEIO, or US Environmentally-Extended Input-Output.

You can download a full list of Purchased Goods & Services for your business HERE.

Has your business baselined its Scope 3 footprint yet?