Why companies are more inclined to report (unofficial) scope 4 emissions?
Here’s a note from Narendra Tiwari:
Scope 4 emission: The term scope 4 emissions refers to emission reductions that happen outside of a product’s life cycle or value chain, but as a result of the use of that product.
It also includes home working emissions. Home working emissions are included because although one is still using the lights, heat, teleconferencing services at home, they have avoided using transportation with fuel, and using energy in a much bigger office with more people.
The employee could also avoid business trips with flights that cause large amounts of emissions by emitting less with the teleconferencing services.
– Why you need to Report?
As stakeholders are demanding companies to go above and beyond net zero and becoming carbon negative, then companies need to report as many emissions accurately as they can. It is also necessary for value chains to report these emissions to be able to stay competitive in their fields with conscious consumers and investors that ask for ESG reporting data.
By reporting avoided emissions, companies demonstrate their commitment to sustainability, transparency and responsible environmental stewardship. It enables them to communicate their efforts and progress in reducing their carbon footprint, which can lead to positive reputational benefits and stakeholder engagement.