November 22, 2022 by CLC
Australian CEOs Come Together to Drive Scope 3 Emissions Reduction Across Value Chains
Australian CEOs Come Together to Drive Scope 3 Emissions Reduction Across Value Chains
22 November 2022, SYDNEY: The Australian Climate Leaders Coalition, whose 48 members include some of Australia’s largest organisations, has today launched its Scope 3 Roadmap: Practical Steps to Address Scope 3 Emissions.
It is widely recognised across business around the world that reducing scope 3 emissions is critical to reaching net zero. Scope 3 emissions are both large, making up 65–95% of most companies’ carbon impact, and indirect—a consequence of a company’s activities outside its direct control.
This step-by-step roadmap is the work of Australian CEOs who have created it after undertaking five pioneering proofs of concept to identify key opportunities and strategies to reduce scope 3 emissions and create 1.5ºC aligned value chains.
“While the challenge of reducing scope 3 emissions is complex and wide ranging, it is far from insurmountable.
“The work we have done proves this. Which is why we are now sharing the lessons we have learnt and the results we have achieved, to help others and to spur action.” David Thodey, Co-Chair Climate Leaders Coalition said.
The roadmap is written by CEOs for CEOs and creates an evidence and results-based pathway that all business leaders can follow as they work to reduce their own scope 3 emissions.
“What has stood out most to me is that by moving early to reduce scope 3 emissions CEOs benefit significantly from leveraging new business models, building stronger partnerships, and accessing growth markets. What is most important is simply to take that first step starting now.” John Lydon, Co-Chair Climate Leaders Coalition said.
Key insight: Radical collaboration
Former Lion CEO Stuart Irvine, who led the work on creating a carbon neutral beer value chain, identified collaboration built on trust, as his key insight from the process, stating:
“For us to tackle scope 3 successfully, we had to think beyond our own organisations; with the ability to build trusted, interdependent, and mutually accountable relationships with value chain partners being the single biggest factor driving success.
“In reducing the carbon emissions associated with beer, we achieved a rapid 11% reduction in scope 3 emissions across the value chain; whilst the BeefCo value chain changes have the potential to achieve a 42% reduction across their value chain.
“We were able to achieve these outstanding results in both instances thanks to our partners committing to a radical degree of collaboration to test, learn and scale solutions with a level of knowledge sharing and data transparency they have never contemplated before”
“Whilst this is about managing climate risk and being ready for new generations of consumers, customers, and talent. Regulation and disclosure standards are on the way. Just this month the International Sustainability Standards Board unanimously voted to require company disclosures on scope 1, 2 and 3 emissions, further driving the need for leaders to step up and implement the changes now,” said Irvine.
On 23 November 2022, CLC member CEOs will join with senior Australian business leaders in a working session to discuss the roadmap and collaborate on next steps to tackle the Scope 3 emissions challenge, together.
The roadmap was first introduced by the Climate Leaders Coalition at the COP 27 Climate Conference in Egypt in November 2022.
You can access the Scope 3 Roadmap: Practical Steps to Address Scope 3 Emissions report here
