Analysis of the scope 3 management of the 350 biggest listed companies in the DACH region (Germany, Austria, Switzerland) in collaboration with the CDP

Reference

Challenge

The management of operational GHG emissions becomes increasingly a competitive factor for companies for reasons of social responsibility as well as for the reduction of corporate risks. Therefore, a comprehensive carbon management must take significant emission sources throughout the value chain into account. This includes their own business processes, electric power generation, the supply chain as well as the use phase. However, the typically used method for the determination of greenhouse gas emissions based on physical and technical models, is in many cases not suitable for the quantification of all emission sources due to a lack of data or bearing high expenses.
Hence, the objective of CDP and Systain was to analyze the status quo of the scope 3 management of the 350 biggest listed companies in the DACH region.

Implementation

Calculation of the average greenhouse gas emissions in the supply chain of different industrial sectors using estell.
Comparison of the calculated mean values to the actual values of GHG emissions reported to the CDP by the 350 biggest listed companies in the DACH region (Germany, Austria, Switzerland).

Writing and publishing the study with results and conclusions.

Results

Climate protection is of important strategic relevance, because political regulation as the emission trading, raises greater expectation of the public with respect to entrepreneurial climate protection activities. Such changes in customer behavior result in higher costs, changing market and competition chances as well as economic changes in the brand value of a company.

The scope 3 emissions of the supply chain exceed the results of the scope 1 and 2 emissions for most sectors significantly. The scope 3 emissions in the supply chain in their magnitude therefore have a significant impact on the business model.
The aim of a successful carbon management in preparation for the entrepreneurial business model of a low carbon emission future can only be achieved if scope 3 emissions are included.