Sustainability Consulting

The case study highlights the challenges faced by large corporations in managing their greenhouse gas emissions, particularly those associated with their value chains, known as scope 3 emissions. These emissions often represent the majority of a company's overall carbon footprint, yet they are notoriously difficult to measure and manage due to the complexity of global supply chains. Companies typically focus on scope 1 and scope 2 emissions, which are under their direct control, but the urgency to address scope 3 emissions has become increasingly critical in light of climate change goals set by the Intergovernmental Panel on Climate Change.

One notable example is Hewlett Packard Enterprise (HPE), which recognized the need for a unified approach to tackle scope 3 emissions across its extensive value chain. HPE initiated a collaborative effort to encourage its suppliers to set science-based targets (SBTs). By establishing a cohesive framework for the industry, HPE aimed to streamline data collection, clarify action steps, and provide guidance on setting SBTs. This initiative is part of HPE's broader goal to reduce manufacturing-related emissions within its value chain by 15% by 2025.

Another example is the Tennant Company, a provider of cleaning products and solutions. Tennant leveraged innovation through its ec-H20™ technology, which converts tap water into a cleaning solution, enabling its customers to avoid over 75,000 metric tons of CO2e emissions. This innovation not only contributed to sustainability efforts but also generated $1.2 billion in revenue for Tennant, demonstrating a successful alignment of environmental goals with business performance.

IKEA also undertook significant steps to address its scope 3 emissions by developing a simulation tool that mapped 99% of its emissions across its value chain. This tool focused on critical areas such as raw materials extraction, production, and product use, allowing IKEA to identify opportunities for innovation and set ambitious emissions reduction targets. The company’s proactive approach underscores the importance of understanding and managing scope 3 emissions as a vital component of its sustainability strategy.

These case studies illustrate the complexities and opportunities associated with managing scope 3 emissions, emphasizing the need for collaboration, innovation, and strategic planning in achieving significant environmental and business outcomes.