If you’ve already started on your decarbonisation journey or delved into carbon accounting, chances are you have already heard about Scope 1, 2, and 3 emissions. In recent times, the concept of avoided emissions or as they are also known, Scope 4 emissions is gaining prominence alongside those traditional categories identified by the Greenhouse Gas Protocol (GHG Protocol).Â
Scope 4 emissions represent a relatively new concept in carbon accounting and business sustainability. The term was introduced by the World Resources Institute in 2013 and provides a novel perspective in measuring an organisation’s impact on greenhouse gas emissions. Keep reading to explore this new category of emissions further, including some of the common challenges in measuring them.Â
Scope 4 emissions definition: What are Scope 4 emissions?
Scope 4 emissions, or as they are often referred to ‘avoided emissions’, are a voluntary category of emissions. They are emissions prevented by the use of a product or service compared to conventional alternatives. Scope 1, 2, and 3 emissions focus on the direct and indirect emissions created by an organisation.Â
By contrast, Scope 4 emissions highlight the potential environmental benefits a company can offer by minimising or eliminating emissions through the adoption of greener practices or technologies. For instance, if a company manufactures energy-efficient products, the emissions saved by their use (compared to traditional, less efficient products) could be considered Scope 4 emissions.Â
Why do Scope 4 emissions matter?Â
These emissions are crucial because they focus on the positive environmental impact of reducing or avoiding emissions through innovative products, services, or technologies. With this in mind, some argue them to be a secret weapon for businesses trying to remain ahead of their sustainability game.Â
They spark innovation by highlighting the importance of developing low-carbon solutions that help reduce emissions across industries. Ultimately, monitoring and coinciding with Scope 4 emissions can help both businesses and individuals achieve their emission reduction objectives quicker than if they solely focus on curbing their carbon footprint through mitigating indirect emissions.Â
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Challenges in measuring Scope 4 emissionsÂ
Measuring these emissions presents several challenges due to their relatively new and complex nature. Below are some common obstacles.Â
Lack of standardisation
Unlike Scopes 1, 2, and 3, there are no widely accepted frameworks or methodologies for measuring this category of emissions. This makes it difficult to ensure consistency and comparability across industries.
Attribution challenges
It can be hard to determine how much of the avoided emissions can be directly attributed to a specific product or service, especially when multiple factors influence the reduction in emissions.
Baseline comparisons
Accurately defining the baseline scenario (i.e., the conventional alternative) to compare against can be difficult. This involves determining what emissions would have occurred without the sustainable product or solution.
Data availability
Reliable data on both the product’s lifecycle and the emissions of conventional alternatives is often scarce, making it difficult to accurately calculate avoided emissions.
Risk of double counting
Without clear guidance, there’s a risk that emissions reductions might be claimed multiple times—by different actors within the value chain or even across scopes—leading to overestimation of total reductions.
Timeframe issues
Scope 4 emissions involve future-oriented calculations, which can introduce uncertainty as the benefits of avoided emissions often accrue over an extended period, making projections complex.
Market and consumer behaviour
Avoided emissions depend on consumer choices and market uptake of sustainable products, which are influenced by unpredictable external factors, complicating accurate measurement.
Conclusion
In summary, Scope 4 emissions offer a forward-thinking approach to carbon accounting by focusing on the emissions avoided through the use of innovative products and technologies. While they present significant potential for driving sustainable progress, the lack of standardisation, data availability, and the complexity of attribution pose ongoing challenges.Â
However, as businesses and industries continue to innovate and adopt greener practices, developing more reliable frameworks for measuring these emissions will become increasingly important. By embracing this voluntary category, companies can showcase their environmental impact and accelerate the global transition to a low-carbon economy.
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