WSG Article: Reducing Scope 3 Emissions: Fuel and Energy-Related Activities

Reducing Scope 3 Emissions: Fuel and Energy-Related Activities

August, 2022 - Shoosmiths LLP

A summary of the key takeaways from a recent webinar on reducing scope 3 emissions: Fuel and Energy-Related Activities.

Shoosmiths is delighted to be sponsoring United Nation Global Compact Network (UNGC) UK’s series of webinars on ‘Reducing Scope 3 Emissions’.

The event featured guest speakers: Olwen Smith, Global Lead, Transition Accelerator, CDP, and member of the Science Based Targets initiative’s (SBTi) Corporate Engagement Team; Julia Creasey, Group Sustainability Director, Croda; and Steven Thompson, Environmental Sustainability Manager, National Grid.

A summary of key takeaways and the recording can be found below, please click here to download the slides.

Key takeaways

Category 3 of the Greenhouse Gas Protocol’s Corporate Value Chain Accounting and Reporting (Scope 3) Standard addresses Scope 3 emissions associated with Fuel and Energy-Related Activities (not included in Scope 1 or Scope 2). This covers:
- Upstream emissions of purchased fuels – extraction, production, and transportation of fuels consumed by the reporting company.
- Upstream emissions of purchased electricity – extraction, production, and transportation of fuels consumed in the generation of electricity, steam, heating, and cooling consumed by the reporting company.
- Transmission and distribution (T&D) losses – generation of electricity, steam, heating and cooling that is consumed (i.e., lost) in a T&D system, which is reported by the end user.
- Generation of purchased electricity that is sold to end users –generation of electricity, steam, heating, and cooling that is purchased by the reporting company and sold to end users, which is reported by a utility company or energy retailer.
To calculate Category 3 emissions, Croda ask’s their manufacturing sites to report their electricity and fuel consumption and then apply UK Department for Environment, Food & Rural Affairs (Defra) or IEA conversion factors.
- The Defra well-to-tank conversion factor for natural gas increased significantly from 2018 to 2021 (up 22%) due to an increase in the amount of LPG imported. Croda have seen their Category 3 emissions increase despite having reduced their Scope 1 and 2 emissions as a result of this.
To tackle fuel and energy-related emissions, Croda plans to:
- Reduce energy use (resulting in reduction in well-to-tank emissions and T&D losses). Novel process technologies are expected to help with this energy use reduction.
- Increase energy efficiency. Similarly, using novel technologies can help with this.
- Replace carbon intensive fuels with alternative sources (e.g., landfill gas has a well-to-tank emission factor of 0). Croda is also increasing on-site renewable energy production.
National Grid is working to reduce emissions from the energy hierarchy by:
- Decarbonising electricity by connecting renewable energy to their networks.
- Investing in low carbon technologies, such as network cables which have lower T&D losses.
- Offering energy efficiency programmes to customers. For example, National Grid offers energy efficiency assessments and financial support for energy efficient home appliances.
- Publishing ‘Our Clean Energy Vision’ which outlines how zero carbon heat can be achieved by 2050.