HomeCarbon NewsScope 3 Emissions Reductions Considered by SEC

Scope 3 Emissions Reductions Considered by SEC

Scope 3 carbon emissions are emissions that do not come directly from a company or assets they own. Nonetheless, those emissions are still emissions. Emissions that fall under this category include emissions from the transportation of the good or how a consumer uses the product. With all this information, the SEC is still considering whether to include these emissions when considering the carbon neutrality of companies.

The problem when considering indirect emissions into regulations is that they are usually the largest and hardest to detect. How can a company find out how consumers use their product? It requires a lot of assumptions into calculating final numbers, many of which are wrong.

The IPCC report that outlines the impending danger of climate change urges immediate action. The SEC mentioned that many companies offer voluntary disclosures regarding scope 1 and 2 emissions. They have also discussed with companies how to disclose indirect emissions. There is still nothing concrete about how companies should disclose their emissions yet.

Scope 3 emissions account for around 65-95% of a company’s total carbon output. In turn, indirect emissions, therefore, have the most potential for reductions. But scope 3 emissions should be released and open if there is to be any reduction of emissions to keep companies accountable.

Most Popular
LATEST CARBON NEWS

Lenovo Unveils 2050 Net Zero Goal, Enters Carbon Credits Deal

Lenovo has revealed its goal to reach net zero greenhouse gas (GHG) emissions by 2050, which the Science Based Targets initiative (SBTi) approves, and...

Voluntary Carbon Credits Market Can Be Worth $1 Trillion in 2037

The total value of carbon credits traded in the market to help entities achieve their net zero goals can be worth $1 trillion as...

Amazon to Start Trading Renewable Energy in India

Amazon received the green light from Indian authorities to start trading renewable energy sources in the country. After securing a category-III energy trading license,...

UK Considers £300M Climate Bailout of British Steel

The UK government is considering a plan to channel a £300 million ($372 million) climate package to help British Steel reduce its carbon emissions...
CARBON INVESTOR EDUCATION

Abandoned Oil Wells and Carbon Credits

You’ve probably seen dozens of pictures before that look exactly like the one above. An active oil field littered with pumpjacks, all churning out oil...

Is Offsetting Carbon Worth It?

Is offsetting carbon worth it? This question has never been more controversial right now and it deserves a good answer, especially if you're into...

How Does Carbon Capture and Utilization Work?

Carbon capture and utilization technology is not only useful, but a necessary strategy to reduce atmospheric CO2 levels, and stall an increase in global...

Top 4 Carbon Stocks To Watch In 2023

Carbon stocks, credits and capture technology are getting a lot of interest from investors. Companies will attract even more capital in 2023.