Impact pathways: the hidden challenges of Scope 3 emissions measurement and management

Abstract

Purpose

This pathway discusses the need for further research into how focal companies measure and manage indirect Scope 3 emissions in their value chains.

Design/methodology/approach

This pathway relies on the authors' qualitative research on European companies' decarbonisation strategies. We analysed self-reported and tertiary data from 33 manufacturing European companies considered leaders in climate action. Additionally, interviews were conducted with four experts who work to elaborate decarbonisation strategies in large companies that are part of global value chains.

Findings

The limited visibility of focal firms over their value chains and data collection capacity raises questions on the reliability of indirect emissions inventories and companies’ ability to manage indirect emissions.

Research limitations/implications

Investigation of the emerging empirical phenomena of indirect emissions may lead to valuable insights for the measurement and management of sustainability issues.

Practical implications

Our piece explores the process of constructing indirect emissions inventories, assists in ensuring accurate interpretation of the data and provokes discussion on focal companies’ role in managing Scope 3 emissions.

Social implications

Many stakeholders refer to companies' Scope 3 inventories. This piece exposes inconsistencies in these inventories and what companies' responsibilities are in managing emissions.

Originality/value

Research on managing sustainability issues in supply and value chains is increasing, and indirect emissions are central in this space. This impact pathway seeks to stimulate research in underdeveloped areas by discussing the limitations of this data and highlighting practical limitations present in its management.