Investors Focusing on Scope 3 Emissions
Main Ideas:
- Scope 1 and Scope 2 emissions are direct and operational electricity use emissions, respectively.
- Scope 3 emissions are indirect emissions that occur throughout a company’s value chain.
- Investors are increasingly concerned about Scope 3 emissions because they provide a more comprehensive picture of a company’s environmental impact.
- Scope 3 emissions can account for a significant portion of a company’s total emissions.
Author’s take:
Investors are recognizing the importance of considering a company’s Scope 3 emissions to accurately assess its environmental impact. While Scope 1 and Scope 2 emissions capture a company’s direct emissions, Scope 3 emissions provide a more holistic view of its entire value chain. By evaluating and addressing Scope 3 emissions, companies can demonstrate their commitment to sustainability and attract investors who prioritize environmental responsibility.
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