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Mobility 2030: Creating a Sustainable Value Chain

Mobility 2030: Creating a Sustainable Value Chain

KPMG South Africa has taken a closer at GHG emissions and how Mobility 2030 could ease the burden.

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When devising a corporate climate change strategy, it is critical to look at a company’s greenhouse gas (GHG) emissions. The GHG Protocol Corporate Standard categorises a company’s GHG emissions into three scopes. Scope 1 emissions are direct emissions from owned or controlled sources. An example would be a company’s own fleet of vehicles used for business purposes. Scope 2 emissions are indirect, from the generation of purchased energy. An example would be buying electricity from Eskom to run your business. However, companies often overlook scope 3 emissions – indirect emissions that occur in the value chain, including both upstream and downstream emissions. This includes purchased goods and services; business travel; employee commuting; waste disposal; use of sold products; transportation and distribution; investments; and leased assets or franchises. Value chain emissions often represent a company’s biggest GHG impacts. An oversight of these corporate-level scope 3 emissions means missed opportunities for companies to improve.

There is a growing awareness for companies to understand and account for GHG emissions along their value chains and product portfolios. As an example, the scope 1 emissions of a company in South Africa manufacturing vehicle parts for a company in Germany will be considered by the German vehicle company as its scope 3 emissions. Simply put: Who you buy from will impact your value chain (scope 3) emissions.

According to Greenhouse Gas Protocol, for many companies, value chain emissions account for more than 70% of their carbon footprint. Therefore companies play a vital role in keeping global warming below 1.5˚C.

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© 2019 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.

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