The importance of Scope 3 emissions in the Media and IT industry
Scope 3 emissions are a group of emissions that are not produced by a company but are generated through its value chain. In other words, they are produced indirectly.
Scope 3 emissions have become increasingly important in the media and Information Technology (IT) industry as digital advertising, for instance, is a tremendous generator of Scope 3 emissions. Due to their major role within the industries mentioned, it is important for companies to understand Scope 3 emissions, how they manifest in daily business activities, and ways to decrease them.
How do the Media and IT industries generate Scope 3 emissions?
Scope 3 emissions are generated in various ways. Here are a few examples of how indirect emissions are generated in day-to-day business operations:
Digital Advertising
Developing creative campaigns requires travel, electricity, hospitality, and other emission-related activities. Scope 3 emissions are produced through the execution of digital media campaigns as the process it takes to generate such campaigns involves significant carbon emissions.
Data Centers
Data Centers within the IT industry are major generators of Scope 3 emissions. They are generated through the construction of data centers, capital goods such as computers and cooling systems, waste management, and business travel. While they are challenging to calculate, researchers estimate that Scope 3 emissions represent 38-69% of a data center’s carbon footprint.
Hardware Manufacturing and Disposal
Emissions from manufacturing raw materials such as copper and aluminum, transporting them, and disposing of them are all considered Scope 3 emissions.
Why should the Media and IT industries decrease Scope 3 emissions?
Various studies have shown that Scope 3 emissions represent the greatest opportunity for decreasing a company’s carbon footprint. For instance, WWP’s 2020 Sustainability Report highlights that Scope 3 emissions account for 98% of their total emissions. In effect, reducing Scope 3 emissions is critical within the media industry as such will allow media companies to decarbonize in a sustainable manner.
Ultimately, reducing Scope 3 emissions will also allow the media and IT industries to be better equipped to manage climate risks, which is important for corporate longevity. By doing so, IT and media companies will also attract increasingly climate-conscious investors and consumers.
Such is important as a 2021 study by PwC indicates that consumers, for instance, are rapidly becoming more eco-conscious and changing their consumption habits as a result. In a digitally dependent era, changing business practices to meet consumer needs and tastes is vital for continued success.
How can the Media and IT industries reduce Scope 3 emissions?
While Scope 3 emissions are difficult to measure, companies within the media and IT industries can take the following steps to better manage and ultimately decrease their emissions:
1. Collect data.
Companies should analyze their value chain to identify potential sources of scope 3 emissions. This data collection process involves gathering information from suppliers, customers, and other stakeholders.
2. Analyze emissions.
Once the data is collected, the next step is to analyze it to identify hotspots and areas where emissions are highest. This analysis will help to understand the major contributors to their scope 3 emissions and prioritize reduction efforts accordingly.
3. Engage stakeholders.
Engaging with key stakeholders is crucial to successful scope 3 emissions reduction. Companies should involve suppliers, customers, and other relevant parties to collaborate on emission reduction strategies. This can include supplier engagement programs, joint projects, and initiatives aimed at driving sustainability improvements throughout the value chain.
4. Set reduction targets.
Based on the analysis of the collected data, companies should set ambitious yet realistic reduction targets. These targets should align with the company's overall sustainability goals and take into account the identified hotspots and areas of high emissions.
5. Develop action plans.
With clear reduction targets in place, companies should develop comprehensive action plans to achieve those targets. These plans should outline specific measures, initiatives, and activities that the company will undertake to reduce scope 3 emissions. This can include implementing energy efficiency measures, optimizing transportation practices, promoting circular economy principles, and encouraging sustainable procurement practices.
6. Monitor and report progress.
Implementing an effective monitoring and reporting system is crucial to track progress towards emissions reduction goals. Regular monitoring allows companies to identify deviations from targets and make necessary adjustments to their strategies. Transparency is key, so companies should also prepare and publish a sustainability report that communicates their decarbonization efforts to stakeholders.
7. Encourage innovation and engagement.
Companies should actively seek out innovative solutions and opportunities for collaboration to further reduce scope 3 emissions. This can include partnering with suppliers on green sourcing initiatives, investing in research and development for cleaner technologies, and exploring new business models that promote sustainability.
Final Words
While reducing Scope 3 emissions may seem arduous and will take time, by following the steps above, the media and IT industries can decrease their Scope 3 emissions and contribute to meaningful climate action. At Footprint Intelligence, we help companies quantify and analyze their Scope 1, 2, and 3 emissions, supporting them through a comprehensive decarbonization journey.