For telecom operators, Scope 3 emissions typically account for a significant portion of their overall carbon footprint, often surpassing 80%. A large majority of these emissions—80–90%—arise from upstream activities in the supply chain, particularly from the procurement of goods and services (Category 1) and capital goods (Category 2). Despite their substantial impact, Scope 3 emissions are notoriously difficult to measure and manage due to the lack of transparency and effective governance across the extended supply chain.
Key Insights
- The Scale of the Problem: Scope 3 emissions often represent the bulk of telecom operators’ carbon emissions, making it critical to address them in sustainability strategies.
- Challenges in Managing Scope 3 Emissions: The complexity of assessing emissions across multiple tiers of the supply chain, combined with inadequate governance structures, limits operators’ ability to fully understand and control the environmental impact of their operations.
- The Need for Enhanced Transparency: Without clear emission data across all levels of the supply chain, operators are hindered in their efforts to adopt effective strategies for reducing Scope 3 emissions.
- Improved Governance and Collaboration: Operators that focus on enhancing governance frameworks, increasing supply chain transparency, and fostering collaboration with suppliers will be better positioned to mitigate the environmental impact of their value chains.
Scope Breakdown
- Scope 1 Emissions: Direct emissions from owned sources, such as company facilities and vehicles, primarily resulting from the combustion of fuels like natural gas and gasoline.
- Scope 2 Emissions: Indirect emissions associated with purchased energy, such as electricity, heating, and cooling.
- Scope 3 Emissions: All other indirect emissions arising from activities across the value chain, including those from upstream suppliers and downstream product use and disposal.
This report highlights the importance of improving governance and collaboration within supply chains, enabling telecom operators to gain better insights into their Scope 3 emissions, and providing actionable strategies for reducing their environmental impact.
