New guidance makes the cement sector value chain (Scope 3) accounting easier

Scope 3 emissions are indirect emissions from the extraction and production of purchased materials and fuels (such as clinker), transport-related activities in vehicles not owned or controlled by the cement company, electricity-related activities (e.g. transmission and distribution losses) not covered in Scope 2, outsourced activities, waste disposal, etc.

Published: 1 Nov 2016
Type: News

Scope 3 accounting allows companies to understand the full climate change impact of their business throughout its value chain and develop more effective greenhouse gas (GHG) reduction strategies. Companies can then develop a value chain footprint that provides an accurate picture of the total impact of a company’s activities. This information will benefit the companies themselves, as well as their suppliers, customers, and other value chain partners.

By measuring Scope 3 emissions, cement companies can:

  • Assess where the emission hotspots are in their value chain
  • Identify resource and energy risks in their value chain
  • Identify which suppliers are sustainability leaders
  • Identify cost reduction and energy-efficiency opportunities across their value chain
  • Engage suppliers and help them to implement sustainability initiatives
  • Reduce their employees’ emissions from business travel and commuting

This Guidance outlines a clear and coherent approach to carrying out a scope 3 assessment and it helps cement companies to increase their understanding of its value chain emissions. It provides consistency for voluntary Scope 3 accounting and reporting in the cement industry by addressesing the main CO2 and non-CO2 GHG emissions from upstream and downstream activities related to cement production.

The percentage of emissions arising from Scope 3 emissions varies depending on the type of company and industry. For some companies, such as financial service companies, the percentage of emissions coming from Scope 3 will be significantly higher (can be 95% plus or even more in some cases) than those due to Scope 1 and 2 emissions.

In the Guidance, an example of the only current comprehensive numbers available amongst cement producers was quoted, showing Scope 3 emissions to be


approximately 17% of the total. These emissions arise from the whole value chain, including capital goods, purchased goods and services, energy-related 

activities and transportation/distribution. Key factors include the source of the fuels being used, the type of procurement and the amount of transport undertaken

We use cookies to ensure you get the best experience on our website. By choosing to continue, you agree to our use of cookies. You can learn more about cookies on our privacy policy page.