In the race to net zero, Scope 3 emissions can be a challenge to navigate. Unlike Scope 1 and 2 emissions that fall within a company’s direct control, Scope 3 emissions are elusive and scattered throughout supply chains. In this case, success hinges on collaboration.
Calculating Scope 3 is “a significant piece of work,” Felicity Kelly, Head of Sustainability at Bunzl Australia and New Zealand, highlighted during a recent 2023 ESG Summit VIC panel.
“Our Scope 3 emissions are calculated in line with the Greenhouse Gas Protocol: Corporate Value Chain (Scope 3) Accounting and Reporting Standard as well as the Technical Guidance for Calculating Scope 3 emissions. We use a hybrid approach of actual consumption data as well as spend data to quantify our Scope 3 emissions.” In its journey to net zero by 2050, Bunzl has measured its Scope 1, 2 and 3 emissions and found that 98% of emissions are associated with Scope 3 and its supply chain. With that in mind, Bunzl set a supplier engagement target verified by the Science Based Targets initiative. This will require our suppliers who represent the majority of our Scope 3 emissions to set science-based carbon reduction targets of their own by 2027, explains Kelly.
Addressing Scope 3 emissions is not just an effective tool to reach net zero – it also lowers operational costs, strengthens partner relationships and solidifies customer loyalty.
“Calculating carbon emissions opens the door for a conversation about how we can work collaboratively to build efficiency into ordering and supply patterns,” says Kelly.
“It also gave Bunzl the opportunity to collaborate with our customers on freight efficiency which could potentially deliver emission reductions. In many cases, fewer deliveries mean fewer truck movements and lowered carbon emissions.”
Bunzl is progressing its Scope 2 reduction journey as well. Across its facilities, Bunzl has worked with landlords towards improving energy efficiency and installing rooftop solar – even going as far as encouraging landlords to achieve 6-Star Green Star certification, an international accreditation that verifies that a building is sustainable as part of leasing agreements.
“It’s a team effort to do this work,” says Kelly. “It’s been an incredibly interesting journey and a great opportunity to learn, improve, and share our experience.”
