世界經(jīng)濟(jì)論壇-供應(yīng)鏈中的排放測(cè)量：商業(yè)現(xiàn)實(shí)和挑戰(zhàn)（英）

Emissions

Measurementin

Supply

Chains:Business

Realities

andChallengesW

H

I

T

E

P

A

PE

RN

OV

E

M

B

E

R

20

23Images:GettyImagesContentsExecutivesummary34Introduction1Sectoralsnapshots51.1Agricultureandfood91.2Mining11121415161618191.3Steel2Implications2.1Featuresofwell-functioningmeasurementsystems2.2Existinginitiativespointintherightdirection2.3KeyquestionsforfuturedialogueContributorsEndnotesDisclaimerThisdocumentispublishedbytheWorldEconomicForumasacontributiontoaproject,insightareaorinteraction.The?ndings,interpretationsandconclusionsexpressedhereinarearesultofacollaborativeprocessfacilitatedandendorsedbytheWorldEconomicForumbutwhoseresultsdonotnecessarilyrepresenttheviewsoftheWorldEconomicForum,theOECD,orBusinessatOECD(BIAC),northeentiretyoftheirMembers,Partnersorotherstakeholders.?2023WorldEconomicForum.Allrightsreserved.Nopartofthispublicationmaybereproducedortransmittedinanyformorbyanymeans,includingphotocopyingandrecording,orbyanyinformationstorageandretrievalsystem.EmissionsMeasurementinSupplyChains:BusinessRealitiesandChallenges2Executive

summaryMeasuringandreportingemissionsinsupplychainscanbeakeyleverfordecarbonizationglobally,butinclusivediscussionsare

neededtostandardizeapproachesIncreasedvisibilityofsupplychainemissionscanmakeacriticalcontributiontodecarbonizingtheglobaleconomy.Itcaninformcorporatedecisionsaroundprocurement,productdesignandresearchanddevelopment(R&D),aswellas?nancialdecision-makingbyinvestors.Thesepromisescannotberealizedifmarketactorsareunabletomeetreportingrequirements,oriftheresultingdataarenottrustworthy.Policy-makersmustthereforecarefullynavigatethequestionofsupplychainemissionsmeasurement.withdownstreamactors;andforiron-oreandcoalproducers,thesteelindustryisanimportantcustomerbuthasseveraldifferent

standards.–Steel:There

isa

lackofcommonstandardsandincompletereporting;

productionprocesses

andtechnologiesvary,asdotheirenvironmental

impact;asa

share

oftotalemissions,Scope3

isloweranddownstreamreporting

notwelldeveloped.Asthereisnoone-size-?ts-allapproach,industryinitiativeshaveplayedanimportantroleintestingdifferent

measurement

approachesandgraduallybringingaboutalignmentamongmembersinsomesectors.Especiallywheresupplychainsarecomplex,concerns

aboutsubstantialcostsandotherburdensremain.Questionsalsoariseonhowemissionsthatfalloutsidecompanies’directmanagementorownershipshouldbestbeaddressed.Inadditiontomeasuring,reportingandaddressingtheirdirectemissions(Scope1)andindirectemissionsfrom

purchasedenergy(Scope2),companiesare

increasinglyfacingfar-reachingexpectationstotrackemissionsfrom

upstreamanddownstreamactivitiesintheirvaluechains(Scope3).Scope3reportinghaslargelybeenvoluntary,drivenbyconsumer,

buyer,

investor,

employeeandcivilsocietyexpectations,amongothers.However,

anumberofregulatoryinitiativesareunderwaytomakethisamandatoryrequirement.Well-functioning,interoperablesystemsformeasuringemissionscansupportdecarbonizationoftheglobaleconomy.Theymustbalanceaccuracywithfeasibility,particularlyforsmallandmedium-sizedenterprises(SMEs)and?rmsindevelopingcountries.Otherwise,thereisarealriskthatmeasurementandreportingobligationsreducecompetitivenessandactasbarrierstotrade,whilenotachievingtheirmainpurpose:fosteringeffectiveclimateactionglobally.Commonlyusedreportingstandardsprovidesomeguidance,butchallengesremainasreportingapproachesproliferate;companiesdeterminedifferentemissionboundaries,andusedifferentcalculationandallocationmethods;datacanbecostly,inaccurateorunavailable;andcerti?cationmechanismsarenotyetwellestablished.Thecomplexityofglobalsupplychainsexacerbatesthesechallenges.Thekeyquestionsforpolicy-makers,businessesandthebroadercommunityinclude:Businessinterviewsalsohighlightsector-specificchallengestomeasurement

andreporting.

Forexample:––Howtostriketherightbalancebetweenaccuracyandfeasibility?Howcangovernmentssupportthedevelopmentofcommonstandards?––Agricultureandfood:Farmproductionisfragmented;differencesingeographyandbiologicalsystemsaffectemissions,whichcomplicatesestimates;comparabilityisdif?cultwherecalculationmethodsvary;andsmallproducerslackthecapacitytoprovidedata.–––Howcangovernments

encourageinteroperability?Howwillmeasurementandreportingbeveri?ed?Howcansmallandmediumenterprises(SMEs)and?rmsindevelopingcountriesbesupported?Mining:Downstreamemissionsreportingremainselusiveduetothelackofveri?eddata,variedstandardsandlimitedincentivestowork–Howcandigitaltoolshelp?EmissionsMeasurementinSupplyChains:BusinessRealitiesandChallenges3IntroductionFirmsare

increasinglyaskedtomeasuresupplychainemissions,butpoordataandinconsistentstandardscurrentlymakethisharderthanitshouldbe.ContextCompaniesareincreasinglyexpectedtomeasure,reportandactonemissionsintheirsupplychains.Theseexpectationscomefromconsumers,businesspartners,regulators,investors,employeesandcivilsociety.There

are

manyreasons

forcollecting

Scope3

emissionsdata:growing

consumer

awareness;

growing

demandfor

transparencyfrom

civil

society;

new

legislationsuchas

theCorporateSustainabilityReporting

Directive;

and

ourcommitmentstotheScience-Based

Targets

initiative.Leading

food

anddrinks

manufacturer1Forexample,inadditiontoreporting

ontheirdirectgreenhouse

gasemissions(Scope1)andindirectemissionsfrom

purchased

energy(Scope2),?rmsare

increasingly

reporting

emissionsassociatedwithupstream

anddownstream

activitiesintheirvaluechains(Scope3

emissions).TheconceptofScope3

isbroader

thansupplychainemissions–italsoincludes,forinstance,emissionsassociatedupstream

anddownstream

transportanddistribution,andtheuseofsoldgoods)formthebulkof?rms’Scope3

emissions.3Scope3reportinghasbeenvoluntary,withmanybusinessesdoingsotogainacompetitiveadvantagethroughbetterinsights,toattractsustainability-focused

investors,

and

to

demonstratetheircommitmenttoenvironmentalsustainability.However,

majordevelopmentsareunderwaytowardsmandatoryScope3reporting(Figure1).withemployeecommutingandinvestments.

In2mostsectors,however,

supplychainemissions(suchasfrom

purchased

goodsandservices,EmissionsMeasurementinSupplyChains:BusinessRealitiesandChallenges4FIGURE1

Keycross-sectoraldevelopmentsSustainabilityreportingstandardsVoluntarytargetsettingMandatoryduediligenceScience-BasedTargets

Initiative(SBTi)InternationalSustainabilityStandardsBoard(establishedin2015)EUCorporateSustainabilityDueDiligence(establishedin2021)Directive(proposed)Target-setting

processusedby4000+

businesses.Sustainabilitydisclosurestandardspublishedin2023consolidateseveralpreviousinitiatives,providinginformationto

investors.Requirescompaniesto

establishprocedurestoaddressenvironmentor

humanrightsharmswithintheirsupply

chains.Allcompaniesthatsubmittargetsnowcompleteascope3inventory.Criteriafornear-term

targetsalsorequiresascope3reductiontargetifthesecomprisemorethan40%

ofacompany’s

emissions.Requiresdisclosureof

scope

1,2

and3

emissions.Scope3

reportingis

in

linewithGHGProtocol.Wouldobligatecompanies

ofa

certainsizethathaveidenti?edclimatechange

asa

principalriskor

impactto

includeemissionsreductionobjectivesin

theirbusinessplans.Is

in

theprocessofdevelopingresourcesto

guidetheadoption,implementation,assessmentandtrackingofscope3targetsin

arobustandconsistentway.Usessinglematerialityapproach,focused

oninformationnecessaryforinvestors’decisions.The

?naldirectiveis

thesubject

ofnegotiationsbetween

EUinstitutionsandwilllikelycomeintoforce

in

2024

attheearliest.Thisguidancewillevaluatescope3targetboundarycriteriaandmaterialitythresholds.Itwillalsoassesshowdifferentinterventionscanhelpachievevalue-chaindecarbonizationtargets.From

2024,

assumesresponsibilitiesoftheTask-Force

onClimate-relatedDisclosures(TCFD).GermanActonCorporateDueDiligenceObligationsinSupplyChains(2023)EuropeanSustainabilityReportingStandards(establishedin2023)Includesenvironmentalduediligencerequirements.Forusebycompaniessubjectto

theEUCorporateSustainabilityReportingDirective.VoluntarydisclosureRequiresscope3reportingunlessacompanydeemsitnotmaterial(whichmustthenbeexplained).CDP(formerlyCarbonDisclosureProject)(establishedin2000)MandatorydisclosureUsesadoublematerialityapproachto

shareinformationonsustainabilityimpactsaswellashowthecompanyis

impactedbythese.Globalenvironmentaldisclosuresystem

forcompanies,cities,statesandregions,coveringclimatechange,

water

anddeforestation.EUCorporateSustainabilityReportingDirective(2023)Over18,700companiesdisclosedimpactsin

2022(+42%

versus2021).Appliesto

large?rms,listed

SMEs

and

non-EU?rmswitha

largepresencein

theEU.CarbonfootprintstandardsCDP

Supply

Chaininitiative:340+

?rmswith$6.4trillion

in

purchasingpoweraskingsupplierstodiscloseimpactsto

CDP.Firms

needto

reportin

linewiththeEuropeanSustainabilityReportingStandards.USSecuritiesandExchangeCommissionEnhancementandStandardizationofClimate-relatedDisclosuresforInvestors(proposed)GreenhouseGasProtocol(establishedin1998)Provideswidelyused

frameworksto

measureGHGemissions,includingScope

3.Underthecurrentproposal,companies

would

berequired

to

disclosescope3

emissionsifthesearematerialoriftheyhave

settargets.InternationalOrganizationforStandardization(ISO)Providesstandardsforreportingcarbonfootprintsoforganizations,projectsandproducts.JapanFinancialServicesAgency(FSA)corporatedisclosureamendments(2023)PartnershipforCarbonTransparency

(PACT)Mandatorysustainabilitydisclosuresforcertainlisted

companies,

based

on

TCFD.Providesguidelinesforproduct-levelemissionsdataaccounting

and

exchange.Source:Authors.Note:Theselistsarenon-exhaustive,anddonotre?ectindustry-speci?cinitiatives.Inadditionto?rm-levelreporting,supplychainemissionsarealsorelevantfordeterminingproductcarbonfootprints(PCF).DemandisgrowingforPCFdataasaninputinScope3calculations.TheInternationalOrganizationforStandardization(ISO)standardISO14067:2018setsoutspeci?cationsforreportingPCFconsideringthefulllifecycleofaproduct.

ISOalsohasotherspeci?cemissions4reportingstandards(e.g.forsteel).Arecentregulatorydevelopment,theEuropeanUnion(EU)CarbonBorderAdjustmentMechanism(CBAM),requirescertain?rmstoreportproduct-levelemissions,includingembeddedupstreamemissionsincertaininstances.(SeeBox1.)EmissionsMeasurementinSupplyChains:BusinessRealitiesandChallenges5BOX1

ReportingrequirementsundertheEU’s

CarbonBorderAdjustmentMechanism(CBAM)CBAM,whichcameintoforceon1October2023,requiresimporterstoreportondirectandindirectemissionsembeddedincertaingoodsimportedThe

European

Commissionhas

adoptedanimplementingregulation

for

reporting

obligationsduringthe

transitionperiod

andprovidedintotheEU.5Followingatransitionperiod,accompanyingguidancefor

importers

and

foreignimporterswillhavetostartpayingleviesfrom1January2026oncarbon-intensiveimportedgoodsequivalenttothosechargedtodomesticgoodsundertheEU’s

EmissionsTrading

Scheme(ETS).Cement,electricity,fertilizers,ironandsteel,aluminiumandhydrogenarecurrentlycovered,withplanstocoverallsectorsthatfallundertheETSby2030.FormanyofthesectorscoveredbyCBAM,theregulationnotestherelevant“precursors”(materialinputs)whoseemissionsneedtobeincludedinthereportedembeddedemissionsoftheimportedgood.producers.

Companies

can

report

in

one

of

three6ways:1)bydeterminingemissionsbasedonactivitydata

andcalculationfactorsorbasedonthecontinuousmeasurement

ofthe

relevant

GHGin

the?uegas(the

EU’s

methodology);2)

anequivalentmethodbasedon

a

carbon

pricingschemeoremissions

monitoringscheme

in

force

where

theinstallationis

located(untilDecember2024);or3)

usingdefault

reference

values(until

July

2024).Forcomplexgoods,there

issome

leeway:20%

ofembeddedemissionsmay

be

reported

basedonestimates

bytheoperatorsof

installations.7Understandingsupplychainemissionscanbeapowerfulleverforclimateaction(Figure2).Forexample,justeightsupplychainsareresponsiblefor50%ofglobalemissions,8andscope3accountsfor75%ofcompanies’emissionsonaverage.9FIGURE2

EstimatedsharesofemissionsscopespersectorAgriculturalcommoditiesCapitalgoodsCementChemicalsCoalConstructionElectricityutilitiesFinancialservicesFood,beverage&tobaccoGeneralMetals&miningOil&gasPaper&forestryRealestateSteelTransportOEMs*Transportservices0%10%20%30%40%50%60%70%80%90%100%Source:CDP,

“CDPTechnical

Note:RelevanceofScope3CategoriesbySector”.10*originalequipmentmanufacturers.Scope1Scope2Scope3However,

whilegreater

transparency

onsupplychainemissions

can

be

a

powerful

lever

for

decarbonization,italsocomeswitha

numberofchallengesandmayrequire

signi?cantcompanyefforts.EmissionsMeasurementinSupplyChains:BusinessRealitiesandChallenges6ChallengesExistingstandards

provide

essentialguidance,butmeasuringsupplychainemissionsentailsmanychoices.Forexample,appropriate

emissionsboundariesneedtobedetermined,andcompaniesmayneedtochoosewhethertousea

spend-basedapproach,

average

data

or

supplier-speci?cestimates.Thegrowingdemandfor?rm-speci?cinformationalsorequires?rmstoallocatetheirenterprise-orplant-levelemissionsacross

different

productsorservices.Thechoiceofallocationmethodcanagainbecomplexandmayin?uenceresults.Firmsalsooftenneedtoreporttoa

widerangeofstakeholders,whomayrequire

different

reportingformats.Ideally,supplychainemissionswouldbetrackedusingreliable?rm-speci?cprimarydata,butthesecanbedif?cultandcostlytoobtain.Dataquality,accuracyandavailabilityposesigni?cantchallenges.Suppliersandcustomersmaynotalwaysdisclosetheirenvironmentaldata,includingduetoprivacyconcernsorconcernsaboutrevealingsensitivebusinessinformation.Datamaynotbeavailableinrealtime,orthedatamaybeincompleteorinconsistent.Dataqualitycanvarysigni?cantlydependingontheregion,industryandindividualsupplier,

leadingtoinaccuracies.The

complexityof

supplychains

ampli?es

thesechallenges.Some

?rms

have

thousands

of

directsuppliers,

and

when

preceding

stagesof

thesupply

chain

are

included,many

more

suppliersmaybe

involvedindirectly.

Reporting

requirementsmay

alsobedisproportionatelyheavyon

smalland

medium-sized

businessesand?rmsindevelopingcountries.Basedoninterviewswithindustryexperts,thispaperprovidesaframeworkfordiscussiononemissionsmeasurementinsupplychains.Itincludesanoverviewofmeasurementandreportingapproachesinthreesectors–agricultureandfood;mining;andsteel.Itoffersasnapshotofthepreparednessandchallengesofsupplychainemissionsreporting,andconcludeswithkeyquestionsforpolicy-makers,particularlytradeandeconomicof?cials,toconsider.Calculationmethodologiesmaydiffer,andemissionsfactors–

theratiobetweenthepollutantemittedandtheactivityconducted–

maybesubjecttovariationsintime,locationandothervariables.Atpresent,theemissionsfactorsusedareoftenbasedonindustryaveragesratherthansupplier-speci?cemissions,whichtakesigni?cantresearchtobuild.EmissionsMeasurementinSupplyChains:BusinessRealitiesandChallenges7Sectoral

snapshots1Businessinterviewshighlightthat?rmsincreasingly

measure

supply

chain

emissions,butencounterpracticalchallenges.EmissionsMeasurementinSupplyChains:BusinessRealitiesandChallenges81.1

Agriculture

andfoodoften?rmsarealreadyquantifyingtheirScope3emissionsforotherreasons,suchasconsumerdemandortomanageclimaterisks.Export-oriented?rmsinterviewedforthispaperindicatedexpectationsofforeignbuyersasamoreimportantfactorthangovernmentpolicy.Foodsupply-chainemissionsTheglobalfoodsupplychainaccountsforanestimatedone-thirdoftotalhuman-causedemissions.11

Thevastmajorityoftheseemissionsoccurthroughland-usechange(e.g.deforestationtoclearland)andfarmproduction(e.g.emissionsfromfertilizeruseorcattle“burps”).Reportingstandardsintheagri-foodsectorRecentyearshaveseen

strong

growth

ininitiativesto

measure

andcommunicateenvironmental

impacts

offoodproducts,

includingnotonly

greenhouse

gas

(GHG)

emissions

butalsowateruse,waterpollution,

biodiversityimpacts,and

more.12Asinothersectors,emissionsreporting

intheagri-foodsectortypicallydrawsonGHGProtocolandISOstandards,

complementedwithsector-speci?cguidance(seeFigure

3).13

GHGProtocol

iscurrently

developingitsLandSectorandRemovalsGuidance,whichwillexplainhow?rmsshouldaccountforemissionsandremovals

from

landuseandbiogenicproducts

(amongotherissues).14Sectororganizationshavealsoproduced

speci?ccarbonfootprintstandards

fordairyandbeef.15Whilesomeeffortsarelinkedtoregulatorydevelopments(liketheEUCorporateSustainabilityReportingDirective(CSRD),whichrequiresmany?rmsintheEUtoreportScope3emissions),FIGURE3

ReportingstandardsinfoodsupplychainsAgriculture/FoodEmissionsfactorsandfarm-levelcalculationtoolsUSdairyguidance(Scope1,2,3)InternationalDairyFederation,GlobalRoundtableforSustainableBeefCarbonfootprintguidanceAgricultureGuidanceFAO

LivestockEnvironmentalLandSector&RemovalsAssessmentandPerformance(LEAP)AcrosssectorsPACT

Path?nder–Scope3andProductCarbonFootprintguidanceCorporate&Scope3ISO14064-1GHGemissionsatorganizationlevelISO14067ProductCarbonFootprintProductLifeCycleISO14040/14044LifecycleassessmentFirm-levelProduct-levelSpeci?cGeneralSource:OECD.EmissionsMeasurementinSupplyChains:BusinessRealitiesandChallenges9emissionsareoftenthelargestcomponentoftheirupstreamscope3emissions.Retailersarealsorespondingtoincreasedconsumerinterestincarbonfootprintswithapushtowardseco-labels.FragmentedsuppliersandvariabilityTheagricultureandfoodsectorfacessomeuniquepracticalchallengesinestimatingemissions.Measurementofemissionsisdif?cult,inpartbecausefarmproductionishighlyfragmented:globally,therearemorethan600millionfarms.16AleadingEuropeanretailerexplainedinaninterviewthatitsScope3estimatesforagricultureandfoodarecurrentlymodelledestimates,usingemissionsfactorstomultiplythepurchasedvolumes,butthatworkisunderwaytore?nethisusingmoregranularsecondarydataandevenprimarydatafromfarmersproducingfortheretailer’s

privatelabel.Gatheringprimarydataforitsprivate-labelfreshmilkcameinatlessthan1%ofthetotalproductioncost,butthesecostscouldgoupifgreatergranularityandproductcoveragewererequired.Anotherfactorcomplicatingemissionsmeasurement

isthatdifferences

in,forinstance,soils,climateorweatherconditionscanaffectemissions.Emissionsmeasurement

thusoftenusesmodelledestimates,whichcanvaryfromhigh-levelapproximations

(e.g.averageemissionsfactors)tomore

granular,

bottom-upcalculationsusingfarm-leveldata.17Moreover,

informationishardertoobtainforproductssoldthroughglobalsupplychains,liketropicalfruit.Emissionscalculationmodelscanvarytoo,whichmakesitdif?cultforretailerstocomparenumbers.OneleadingfoodanddrinkmanufacturerexplainedthattheirScope3calculationscurrentlyuseemissionsfactorsfromthescienti?cliteratureratherthanprimarydata,astheyworrythatusingsupplier-provideddatamightintroducemoremeasurementerror.PrimaryversussecondarydataRetailersaroundtheglobeareincreasinglytrackingScope3emissionsandsigninguptotheScience-BasedTargets

initiative(SBTi).Food-related[W]e

are

facingbigchallengeswithregard

tothecomparabilityof

carbondata.

Dependingonthesupplychain,wetryto

use

asingletoolforallour

growers/farmers.

However,

in

internationalsupply

chainsthechallengeis

muchhigher.

Manysuppliersended

updevelopingin-housesolutions.

Thishas

createdan

issuein

thesensethat

thedatais

really

dif?cultto

useforbenchmarkingsuppliers.Leading

European

retailerReportingproliferationInterviews

with

companies

exportingbeefanddairyproducts

revealed

thatthese?rms

are

investingin

emissionstracking,inpartlinked

tocustomerdemandfurtherdownthesupplychain.This

oftenrelies

onfarm-speci?ccarbonfootprintestimates.

Oneintervieweeemphasizedthat

the

real

barriers

here

arenotaboutcost,butrather

aboutexecution,

capacity,accesstodataand

thelike.Another

?rm

describedpartnering

with

a

research

institutetodevelopmoreaccurateemissionsfactors,as

well

asusingtraceabilityandsatellite

technologyto

increase

accuracy.Manyintervieweesexpressedconcernaboutafragmentedreportinglandscape.Industryplatformscouldplayaroleinhelpingtounifythereportingprocess.Mandatorydisclosurescouldsupportsucheffortsbystreamliningafragmentedlandscape–orcouldunderminethemifdifferentjurisdictionsadoptdifferentrequirements.Alotofresourcesarespentonreportingonthesamemetricsindifferentways.Stakeholders,investors,customers…allhavedifferentrequirementsforhowwereportthedata.Thissituationoftenleadstoconfusionamongnon-experts.Asaconsumer-facingcompany,

weworrythatitmayreducetrustinourreporting.Leading

food

anddrink

manufacturerEmissionsMeasurementinSupplyChains:BusinessRealitiesandChallenges

101.2

MiningMining,theextractionofvaluablematerialsfromHowever,emerging?nancialdisclosuremandatesandthelaunchofthenewInternational

SustainabilityStandards

Board(ISSB)standardsthatincorporatetherecommendationsoftheTask

ForceonClimate-relatedFinancialDisclosures(TCFD)areexpectedtoenableconvergence.Additionally,initiativesliketheInternational

CouncilonMiningandMetals’(ICMM)alignmentexerciseandtheCoalitiononMaterialsEmissionsTransparency(COMET)aimtocreateaharmonizedGHGcalculationframeworkapplicabletoallmineralsupplychains.21

Oneintervieweerecognizedthata

moreevolutionaryprocess

towardsconvergenceisnecessaryastheindustrytestsoutdifferentmethodologies.theearth,servesasthefoundationfornumeroussupplychains,spanningmanufacturing,agricultureandenergyproducts.Theminingindustryitselfencompassesamultifacetedsupplychain,includingextraction,processing,gradinganddistributionofrawmaterials.Eachstagepresentsopportunitiesfordecarbonizationthroughoperationalef?ciency,electri?cationandrenewableenergyintegration.18Miningiscentraltothecleanenergytransitiongiventheessentialroleofmetalsandmineralsinlow-carbontechnologies(suchasbatteriesforelectricvehicles,solarpanelsorwindturbines).19Scope1

and2

emissionsintheminingsectoraccountforlessthan10%oftotalemissionsbythesector20

andare

onlysigni?cantintheprocessingstageforcertainproducts.

Scope3

emissionsincludeemissionsrelated

toR&Dactivities,machineryusageandrawmaterialtransportation.However,

mostScope3

emissionsoccurdownstream

incustomerindustries,complicatingtheassessment.DownstreamemissionschallengesTheminingindustry’s

Scope3reportingfordownstreamindustriesremainsinitsinfancy,relyingpredominantlyonestimatesratherthanveri?eddata.Whileincentivesexisttoworkwithupstreamsupplierstomonitorcarbonfootprintsandtointroducelow-carbontechnologies,thedownstreamscenarioisdifferent.Asoneindustryexpertnoted,thereisaperceivedlackofcontrolandincentivetomonitoremissionswhentheonusofdecarbonizationlieswithanothersector.Varied

standardsindownstreamindustriesfurthercomplicatedatacollaboration.However,

thepushtowardsSBTitargets,whichmandatetheinclusionofScope3emissionswhentheyexceed40%ofacompany’s

totalemissions,isgraduallychangingthislandscape.22ReportingstandardsinminingTheminingindustry’s

diverseproductrangeandprocessingmethodshaveledtothedevelopmentofmultiplemethodologiesandstandardsforcarbonmeasurementthatarenotalwaysfullyaligned.WhiletheGHGProtocolandISOstandardsformthebasis,theirbroadprinciplesaresubjecttovariousinterpretationswhenimplementedforspeci?cproductsorprod