Steel Industry Sustainability: How Scope 3 Emissions Matter
Discover effective sustainable and cost-efficient strategies for meeting scope 3 regulations in the steel industry, with a focus on eco-friendly packaging.
Aug 3, 2023
When it comes to sustainability, most steel companies focus on their direct operations (Scope 1) and purchased energy (Scope 2) emissions. However, there's a crucial piece of the puzzle that often goes unnoticed: Scope 3. These indirect emissions from your value chain play a significant role in your sustainability performance. In this blog, you’ll discover why meeting Scope 3 regulations is vital for your steel company's success and the environment.
The hidden impact of Scope 3 emissions
Before we dive in, it’s important to understand the differences between the three scopes of gas emissions:
Scope 1 covers the emissions that come directly from your company's activities, like manufacturing and using fuel on-site.
Scope 2 includes the emissions that indirectly result from the energy you buy, such as electricity and heating.
Scope 3 are indirect emissions that happen outside your direct control, like when raw materials are extracted, products are packaged and distributed, or at the end of a product's life.
Focusing only on Scope 1 and 2 emissions means neglecting a significant part of your environmental impact. Scope 3 emissions can account for the majority of total emissions of your company, making them too crucial to ignore.
The four key benefits of addressing scope 3
Addressing Scope 3 regulations offers many benefits for your steel company's sustainability performance. Below, you’ll find four key benefits:
First and foremost, it enhances your credibility and reputation by showcasing your commitment to transparency and environmental responsibility, earning trust from stakeholders, customers, and investors.
Additionally, analysing Scope 3 emissions uncovers potential inefficiencies in your value chain, leading to process optimization, waste reduction, and lower overall emissions.
Adapting to the third scope also ensures your company's resilience to future environmental standards and safeguards against penalties. Collaborating with suppliers to reduce Scope 3 emissions fosters stronger relationships, reduces risks, and boosts supply chain resilience.
Moreover, addressing this scope often goes hand in hand with adopting resource-efficient practices, resulting in cost savings and improved operational efficiency.
Embracing Scope 3 is essential. It's not just about Scope 1 and 2 – Scope 3 holds equal importance in driving your steel company towards sustainability and environmental responsibility.
Meeting scope 3 regulations to improve your sustainability performance
Enhancing your sustainability performance might feel like a big task. But integrating Scope 3 emissions into your strategy is a crucial step, especially in the steel industry. This helps you in many ways: it increases credibility, identifies opportunities for improvement and ensures compliance with changing regulations. Also, it showcases your company’s commitment to environmental management and a sustainable future for both your organisation and the planet. By understanding and using Scope 3, you can improve your sustainability performance and reduce your environmental impact.
Are you interested in enhancing the sustainability performance of your steel company after reading this blog? Choosing sustainable options for your steel packaging is one of the ways to meet scope 3 regulations. Kraft Armor specializes in providing sustainable and durable fiber-based packaging solutions for the steel industry.