How to reduce Scope 3 emissions and hit ESG targets

Zero in on carbon emissions with loveelectric.

We’re all feeling it: the pressure to reduce our carbon footprint. 

From individuals to large corporations, the weight of climate change is shared across all of our shoulders, with the urgency to make effective changes growing daily. 

But for large companies, that pressure is coming directly from government policy: not just a sense of morality and consumer decisions. The bottom line? Reduce your emissions effectively and quickly – or pay the difference. 

In this article, we dive into the most complex of carbon emissions – Scope 3, or indirect emissions – to show you how easy it can be to make a positive impact on your company’s carbon output. We’ll outline the practical steps you can take to reduce Scope 3 emissions and how an EV salary sacrifice scheme makes that journey smooth.

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What are Scope 3 emissions?

Reporting on your company’s emissions is as easy as 1-2-3. 

Company greenhouse gas emissions (GHG) come in three different categories. Ensuring your company is reporting on and choosing the most impactful activities to reduce your carbon emissions is critical for companies across the UK. 

The three Scopes first appeared in the Green House Gas Protocol of 2001. Today, they are the basis for mandatory GHG reporting in the UK.

In brief:

• Scope 1 emissions result from the direct activities of your company, such as gas burned during manufacturing your products
• Scope 2 emissions result from the indirect activities of your company, such as electricity to heat your office or remote workers’ homes during work hours
• Scope 3 emissions result from indirect sources in your company’s supply chain. 

Scope 3 emissions is the big one for companies. About 80% of a company’s GHG emissions result from Scope 3 – so the potential impact of reducing emissions in this category is massive (UK Government). 

At the time of writing, Scope 1 and 2 reporting are mandatory for companies in the UK with over 500 employees or any listed company. However, there is increasing pressure to add Scope 3 emissions to this regulatory requirement, with the UK government calling for views on the costs, benefits, and practicalities of Scope 3 reporting in late 2023. Plus, with increasing commercial pressure from consumers and organisations inviting contract tenders, Scope 3 reporting is firmly on the mind of companies across the UK — big and small. 

But how do you reduce emissions that are seemingly out of your control? Don’t worry. We’ve got you covered. 

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Step 1: Understand your current Scope 3 emissions

You can’t reduce what you haven’t measured! Ensure your data is complete, thorough and accurate. This gives you a marker to prove the changes you make have the intended impact. 

To help corporations measure Scope 3 emissions, the GHG Protocol has developed the Scope 3 Standard. This standard enables companies to account for emissions from 15 categories of Scope 3 activities, both upstream and downstream of their operations. The Scope 3 framework also supports strategies to partner with suppliers and customers to address climate impacts throughout the value chain.

Looking for specialist support to measure your Scope 3 emissions? We’ve partnered with Carbon Neutral Britain to offer loveelectric clients bespoke Scope 3 reports.

Ask us about you bespoke Scope 3 report

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Step 2: Set clear and achievable goals

Don’t overcomplicate it. Set clear, achievable targets. Make your journey to reducing Scope 3 emissions low-stress and high-impact. Ensure your targets follow the SMART goals structure and are aligned with your overall sustainability goals. For example, you might aim to reduce emissions from business travel by 20% over five years. Clear targets provide direction and enable you to track progress over time.

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Step 3: Implement sustainable changes

Embedding sustainable practices within your organisation can make a serious dent in your Scope 3 emissions. With more employees back to work in the office and salespeople out on the road again, Employee Commuting and Business Travel have become the leading sub-categories for emissions. 

One way to simply and swiftly reduce employee commuting and business travel GHG emissions is to replace your company’s car fleet with electric cars. With our EV salary sacrifice scheme, you can do so at no cost to your business (it’s cost-neutral!) while offering a low- to no- GHG emissions transport options. 

Ready to get started with EV salary sacrifice? Let's chat!

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How much GHG emissions could my company reduce with EV salary sacrifice?

On average, replacing an average mid-sized petrol or diesel car with an equivalent battery electric vehicle (BEV) reduces 1.8 tonnes of CO2 from being emitted into the atmosphere each year.

To put this into perspective, one loveelectric customer currently has over 70 EVs leased with us, reducing their annual Scope 3 emissions by 126 tCO2e. With 44% of their employees currently engaged in the scheme, there is still considerable room for increasing their impact. 

Using our guide below, you can quickly calculate how much your company could reduce its Scope 3 emissions through EV salary sacrifice. 

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Step 4: Engage stakeholders

Scope 3 emissions consider your entire supply chain, so you must examine who you’re working with and who you decide to work with in the future. How do you decide on new partners or delivery stakeholders in your business? Who are your investors? What are your employees’ travel and commuting habits? 

You might not be able to control your stakeholders’ actions, but you can control who you work with. 

It’s a tale as old as time, but effective communication and education can motivate all stakeholders to participate in sustainability initiatives. You might choose to offer incentives, such as bonuses for meeting emission reduction targets. Our EV salary sacrifice scheme can double as an incentive for your team and an effective GHG reduction strategy, offering them a top-of-the-line electric car at 30-60% off the monthly price. 

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Step 5: Monitor your progress

Just as it’s essential to set a benchmark for where your company’s GHG emissions are at the start of this process, so too is it important to check in and see how you are progressing. 

Tracking your progress allows you to see what’s working and where adjustments are needed. Transparently reporting your emissions and reduction efforts builds trust with stakeholders and enhances your company’s reputation as a leader in sustainability.

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Final words

Scope 3 reporting and reduction might seem complicated, but it doesn’t have to be! As you’re starting your journey, focusing on the small, incremental changes your company can make is critical. Measure your emissions baseline, set clear and achievable goals, make confident changes, and check back on your progress.

See. Simple as 1-2-3!

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loveelectric is ready to supercharge your journey to zero emissions. Our EV salary sacrifice scheme is helping thousands of companies across the UK reduce their Scope 3 emissions – all while rewarding their employees with 30-60% off their monthly leases. Chat with us to find out how can work with your company, too!