ESG In Operations Part 1: Going Circular To Address Scope 3 Emissions

As the world becomes increasingly focused on environmental action, businesses are re-evaluating their practices to ensure their processes and operating models are fit for a sustainable future.

Most value chain emissions are upstream in Scope 3, with the use of purchased products and materials often contributing very little to a company's overall footprint, whilst recycling and other environmentally friendly initiatives are becoming essential levers to reduce emissions throughout the value chain.

"Circular" opportunities live upstream and downstream

Another key area of focus is the circular economy, which prioritises recycling and reusing materials to reduce emissions and limit the use of newly manufactured 'inputs' to the production process. Such re-examination – and reimagining – of long-time practices stands to uncover short-term financial wins and longer-term returns.