1、How chemical companies can reduce scope 3 emissions nowPhoto by Amaya De La Hoz Kearney,MadridWith 75 percent of their green-house gas emissions coming from external sources,chemical companies should reform their approach to purchased goods and services.Corporate boards around the world are taking a

2、ction on sustainability and decarbonization.But they rarely focus on scope 3 greenhouse gas emissions.They grasp the need to address scope 1(emissions caused by the company itself)and scope 2(indirect emissions from purchased electricity,heating and cooling,and so on).But they incorrectly view scope

3、 3(indirect emissions upstream and downstream of companys operations)as a more distant,less urgent problem.In fact,scope 3 requires immediate analysis and action.In the chemicals industry,at least 75 percent of emissions come from scope 3.Thus,to reduce carbon emissions,chemical companies need to ad

4、dress purchased materials that account for almost half of scope 3 emissions.And make no mistake,the demand to reduce carbon will comefrom customers,regulators,and investorssooner than most people expect.If you are in the chemicals industry,you will face challenges in this new area.You will need to f

5、ind and measure good data,increase visibility,and engage a wide array of stakeholders in deeper relationships.The good news:there is a clear,logical path to overcome these challenges.As in many other business initiatives,you gather data,set priorities,identify feasible options,and implement your pla

6、n.This paper discusses how.In the chemicals industry,at least 75 percent of emissions come from scope 3.1How chemical companies can reduce scope 3 emissions now1 Due to data availability,for two companies,we used the 2019 reporting year,and for one company,2021.Notes:CO2e is carbon dioxide equivalen