New York City – Amidst the relentless heatwaves and wildfires of July 2023, the dire necessity of addressing scope 3 emissions in the fight against climate change has become increasingly apparent. With global temperatures reaching record highs and oil demand at an all-time peak, the focus is shifting towards these indirect emissions that form a significant portion of the global emissions profile.
According to World Economic Forum, the recent extreme weather events and the continued reliance on fossil fuels underscore the urgency for comprehensive action against climate change. While initiatives to minimize direct and indirect emissions under operational control (scope 1 and 2) are crucial, the real challenge lies in tackling scope 3 emissions, which occur further along the supply chain.
Industries such as mining and metals are actively engaging with this challenge, exemplified by their collaborations with shipowners and operators to switch to lower-carbon maritime fuels. This strategy is essential in industries where total decarbonization is particularly complex, such as steel, cement, aluminum, and long-distance air travel, where traditional processes inherently generate significant greenhouse gases.
Scope 3 emissions, on average, constitute about 75% of a company’s total emissions, making their reduction vital for meaningful climate change mitigation. The approach requires a collaborative effort across the value chain, involving suppliers, manufacturers, and consumers. For instance, the production of electric vehicles, while a leap towards sustainable mobility, currently involves high embedded carbon emissions in its supply chain. Addressing these emissions is crucial to realizing the full environmental potential of such innovations.
The International Council on Mining and Metals (ICMM) has taken significant steps in this direction by developing accounting and reporting guidance for scope 3 emissions. This initiative aims to enhance transparency and collaboration within the mining and metals sector, a critical starting point in most supply chains.
Efforts in the mining industry include co-investing in technology to produce low-emission materials and prioritizing the mining of higher-quality ores. Additionally, given the industry’s significant demand for shipping, there is an ongoing push towards the use of lower-carbon maritime fuels and the development of low-emission ships.
As the demand for metals and minerals surges with the expansion of renewable energy infrastructure and electric vehicles, the need for comprehensive strategies to reduce scope 3 emissions becomes more pressing. The acknowledgment that the atmosphere knows no boundaries is driving a global effort to extend decarbonization ambitions beyond immediate operational controls, emphasizing the interconnected nature of the global economy and the environment.