Sustainability initiatives have become a priority for businesses worldwide, with a key focus on tracking and effectively managing Scope 3 emissions. These emissions can account for up to 85% of a business's total emissions, making them a critical factor in sustainability efforts. However, the process of collecting accurate and comprehensive Scope 3 data presents various challenges that businesses need to confront. In this blog post, we delve deep into the intricacies of gathering Scope 3 emission data, providing insights into crucial aspects and offering strategies to navigate the obstacles associated with this essential task.‍

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‍Defining the Information You Need

The initial step involves pinpointing the precise information you need to gather. Scope 3 emissions encompass a broad array of indirect greenhouse gas emissions, encompassing supply chain, transportation, and more. By identifying the precise data points essential, you lay the cornerstone for your data collection process.

This journey involves several key considerations:

1. Defining Materiality: On one hand, you need to determine what aspects are material for your company – what falls within your scope.
2. Specific Data Requirements: Another facet is the specific data you require – CCF, PCF, targets aligned with SBTi, and so forth.
3. Granularity of Data: The third aspect is how granular you need the information to be. Are you seeking targets? If yes, should they be aligned with certain standards? Should SBTi-aligned targets encompass baseline, target year, and precise emissions figures?

Mastering these nuances ensures a well-structured and effective data collection process tailored to your company's sustainability objectives.

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Requesting and Collecting Information

Effective communication is at the core of requesting information from suppliers. It's worth noting that companies often begin by calculating scope 3 emissions based on benchmarks before actively engaging with suppliers. Once the decision to engage with suppliers is made, establishing a smooth information exchange is essential. To establish a seamless flow of information, create a clear channel of communication, utilizing methods such as emails, surveys, or dedicated platforms. Collaborating closely with suppliers is crucial, emphasizing the significance of precise data collection and enlightening them about their pivotal role in your sustainability endeavors.. Here are a few tips & ticks on how

• Use Plain Language: Keep your message simple and easy to understand. Avoid technical jargon that might confuse your suppliers. In cases where technical terms are necessary, support them with documentation or training materials to provide clarity.
• Explain the Why: Share why you need the information and how it contributes to a their targets, and laws such as CSRD. Personalize the message to show you value their role.
• Step-by-Step Guidance: Provide clear instructions on how to submit the data. Break down the process into simple steps to avoid confusion.
• Highlight Benefits: Emphasize how accurate data helps them showcase their commitment to sustainability, potentially opening doors to new opportunities.
• Open for Questions: Let them know you're available to answer any questions they might have. Encourage them to reach out if they need help. As most times suppliers require some education on these topics.
• Personal Touch: If possible, mention any positive past experiences with their company or their dedication to sustainability. For instance, at ClimateCamp we add a personalized video from the company leadership sharing why they would like you to share this information.
• Appreciation: Express gratitude for their time and effort. A thank-you note shows you value their contribution.
• Flexible Communication: Allow them to choose their preferred communication method—email, survey, or other platforms.

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Supplier Education

Educating suppliers regarding the importance of Scope 3 emissions and your sustainability objectives can cultivate their collaboration. Emphasize the positive influence of their data contribution and its alignment with their own sustainability aims. Simultaneously, make clear the potential adverse consequences for your company in case this data is not provided. This approach encourages a mutual understanding of shared goals and responsibilities.

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Avoiding Supplier Annoyance

Maintaining a delicate balance in communication and reminders with suppliers is essential to prevent them from feeling overwhelmed. Aim for this equilibrium by sending concise and well-timed requests. Grouping related inquiries together can minimize disruptions to their daily operations. Moreover, selecting a platform that utilizes open standards to share information is vital.

At ClimateCamp, we've embraced the PACT pathfinder framework, which ensures a seamless interaction when you reach out to suppliers. This commitment to PACT not only simplifies the process but also offers suppliers a gratifying incentive.‍

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Ensuring Data Accuracy and Granularity

To accurately assess Scope 3 emissions, data must be collected with the right level of granularity. Collaborate with suppliers to gather specific, detailed information that reflects their operations accurately. We see data being collected both product level (product environmental footprint, product carbon footprint), as well as organization level (organizational footprint, organizational targets). Know that in some cases most of the suppliers do not yet have product environmental footprint data available. So always provide a fall back allowing them to share organizational footprint data. And partner up with partners (consulting) to offer them an easy way to measure their product footprints. That's why ClimateCamp also offers a module for your supplier to easily calculate product footprints.‍

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Data Validation

Data validation is important to ensure accuracy. Implement checks to identify inconsistencies or outliers in the collected data. Cross-reference data with external sources when possible to verify its reliability. For instance, including sources of your data as limited assurance.

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‍Data Format Standardization

Data received in varying formats can complicate analysis. Establish standardized templates or formats that suppliers can use to submit data. This simplifies data collection and ensures consistency. As mentioned above the PACT Conformant Solution is a great example for this type of standardization.

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Encouraging and Facilitating Supplier Data Sharing

Motivating suppliers to share data can be challenging. Emphasize the mutual benefits, such as improved transparency, reduced environmental impact, and better stakeholder relations. Showcase success stories of suppliers who have actively participated in data sharing. To empower suppliers to share data with ease, provide user-friendly tools and platforms. Simplify the process by offering clear guidelines, tutorials, and technical support. This approach simplifies data sharing and reinforces the collaborative effort towards sustainable practices.

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Collecting Scope 3 emission data is a crucial step towards achieving sustainability goals. While challenges exist, they can be overcome through strategic communication, education, validation, and collaboration with suppliers. Extra challenges, such as getting to the right person in the organization, the recurring nature of the exercise, suppliers' time constraints, and data availability concerns, are important factors to address. By proactively addressing these challenges and implementing a well-structured data collection process, businesses can foster transparency, enhance sustainability efforts, and make a meaningful contribution to their sustainability objectives.

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