Guide to digital scope 3 emissions for products and services

Summary

Measuring your organisation’s digital Scope 3 emissions – those produced from digital products and services in your supply chain – can be challenging, as these are primarily outside of your control.

These include websites, software, Internet usage, digital advertising, and other intangible services with no physical presence.

This article provides a guide to these Scope 3 emissions to help you plan how to identify and measure them.

Defining carbon emissions

The Greenhouse Gas (GHG) Protocol

The Greenhouse Gas Protocol is the world’s most commonly used standard for accounting for greenhouse gas emissions.

The GHG Protocol separates greenhouse gas emissions into three scopes:

• Scope 1 emissions are direct emissions from fossil fuel sources that are owned or otherwise controlled by your organisation
• Scope 2 emissions are indirect emissions associated with the electricity your organisation uses
• Scope 3 emissions are emissions that come from both the upstream and downstream ends of your supply chain.

Scope 3 emissions

Scope 3 emissions are the result of activities from assets not owned or controlled by your organisation but that you indirectly affect in your supply chain.

So, measuring your Scope 3 emissions requires you to identify and track all the suppliers, partners, customers, and all parts of your supply chain, including third-party products and services.

The Scope 3 emissions for one organisation are the Scope 1 and Scope 2 emissions of another organisation.

Many organisations find their Scope 3 emissions make up between 80% and 90% of their total greenhouse gas emissions.

Upstream scope 3 emissions

These indirect GHG emissions relate to the creation of products and services often referred to as cradle-to-gate.

1. Purchased goods and services
2. Capital goods
3. Fuel- and energy-related activities (not included in Scope 1 or Scope 2)
4. Upstream transportation and distribution
5. Waste generated in operations
6. Business travel
7. Employee commuting
8. Upstream leased assets

Downstream scope 3 emissions

These indirect GHG emissions relate to the use of sold products and services are often referred to as gate-to-grave.

9. Downstream transportation and distribution
10. Processing of sold products
11. Use of sold products
12. End-of-life treatment of sold products
13. Downstream leased assets
14. Franchises
15. Investments

Digital greenhouse gas emissions

As we discussed in a recent article, just because you can’t physically hold or see a tangible object when browsing a website doesn’t mean that activity has no carbon emissions.

The technology your organisation uses, alongside all the digital products and services within your supply chain, contributes a significant percentage of your organisation’s overall GHG emissions.

This includes, but isn’t limited to your:

• Website
• Hosting
• Internet usage
• Website design agency
• Social media
• Digital advertising (PPC)
• Mobile phones, laptops and desktop computers
• Software and applications, like your CRM, CMS
• Emails and office software, including document storage (yes, emails do have a carbon footprint)
• Use of AI

Scope 3 emissions for a web agency designing a website for a new customer.

2. Upstream – Purchased goods and services

The web agency will hopefully be designing a sustainable website. To calculate their upstream purchased goods and services, they will need to measure the emissions from designing and developing the website, including:

• Website design and development software
• Project management software
• Digital assets purchased
• Their hosting partner
• Other subcontractors used on the project

10. Downstream – Use of products sold

Once the website is launched, the web agency will need to include the emissions from the website as it is used in their reporting on the use of products sold,

This measurement will need to take into account the volume of web traffic, hosting and advertising. If this is an eCommerce website, the emissions generated by integrations with eCommerce tools and online payment services will need to be taken into account.

Example of an agency collaborating with a local charity to create a more sustainable website

One of Kanoppi’s agency partners, Indigo Tree, is a sustainable web development agency. Indigo Tree prides itself on its sustainable practices, working with partners and suppliers who share the same values.

Indigo Tree was recently able to redesign a client’s website and move it to WordPress. The home page data was reduced from 5MB to 500KB per page view (90% reduction).

Creating a more sustainable website positively impacts both ends of the digital supply chain in this case, and in the future, the carbon emissions from the website as it is used over the next few years will be significantly reduced. This will also benefit the website visitors, as the website is faster to load and quicker to use.

How to measure and reduce digital Scope 3 emissions

Set a strategy and reduction target

Firstly, you should take a baseline measurement of your current digital Scope 3 emissions. After all, you can’t reduce what you can’t measure.

Once you determine your baseline, decide on your short and long-term targets. Be realistic, keeping in mind that most of the Scope 3 emissions in your digital supply chain are out of your control.

You can then put frameworks, processes, and tools in place to track your progress.

Foster a culture of sustainability and raise awareness

For digital Scope 3 emissions, you will need to raise awareness among your partners, suppliers, and customers, working closely with them to align on your sustainability values.

You can do this by highlighting the advantages they can gain from reducing digital emissions and adopting more sustainable practices. Then, give them a deadline for starting to provide carbon emissions reports on their digital products and services.

This can have a positive ripple effect throughout your supply chain, reducing your Scope 3 emissions, especially if you can convince your suppliers to work with more sustainable partners.

Work with organisations that are committed to sustainability

Choosing to work with partners and suppliers who actively strive for sustainability is the easiest way to reduce Scope 3 emissions in your digital supply chain.

You can also support public policies that aim to make reporting on Scope 3 emissions mandatory. This will help influence organisations that are less concerned with sustainability to begin reducing their carbon footprint.

Use tools to help

Tools like Kanoppi can help with this measurement. Kanoppi analyses each of your pages’ visitors daily, as well as visitor traffic, visitor location, devices, and other factors that influence your site’s carbon footprint. It then provides straightforward, actionable guidance to make simple changes that have a significant impact on a more sustainable website.

Reducing GHG emissions is a joint effort

If you’d like to learn more about any of the points covered in this article, please don’t hesitate to get in touch. We’re always happy to answer questions and chat more about sustainability.

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