Understanding Scope 4 (Avoided) Emissions
Scope 4 emissions, commonly referred to as avoided emissions, represent the reduction in greenhouse gas (GHG) emissions achieved by using a product or service compared to a conventional baseline. Unlike Scope 1, 2, and 3 emissions, Scope 4 is not formally recognised by the GHG Protocol but offers valuable insights into the environmental benefits of innovative solutions.
Key Considerations
Baseline Comparison:
Establish a baseline scenario (e.g., lithium battery) and compare it to the alternative (e.g., zinc battery).
Calculate the difference in emissions between the baseline and your product to determine the avoided emissions.
Calculation Methodology:
Use Life Cycle Assessment (LCA) methodologies to ensure a thorough comparison of emissions across the product's life cycle.
Collect data for both the baseline and alternative products, from raw material extraction to disposal.
Data Accuracy and Documentation:
Ensure transparency by documenting the methodologies, assumptions, and data used in your calculations.
Consider third-party verification to enhance credibility.
Reporting Scope 4:
Report avoided emissions separately from Scopes 1, 2, and 3. They represent additional benefits, not offsets.
Present the avoided emissions per unit and multiply by the total production to calculate total avoided emissions.
Project FRAME Methodology Alignment
Our methodology aligns with Project FRAME's approach for evaluating GHG impact in early-stage investments. Project FRAME provides a comprehensive framework for assessing the potential GHG reductions of innovative technologies and services. By integrating their guidelines, we ensure a robust and credible assessment of avoided emissions.
How KEY ESG Can Help
KEY ESG's platform offers comprehensive tools to help you accurately report your Scope 4 emissions. From data collection to calculation and transparent reporting, KEY ESG simplifies the process, enabling your organisation to showcase the environmental benefits of your innovative products. By integrating Scope 4 reporting into your ESG strategy, you can enhance your sustainability profile and demonstrate leadership in reducing global emissions.
Conclusion
While Scope 4 emissions are not yet formally recognised, they play a crucial role in showcasing the environmental benefits of innovative products. By accurately documenting and reporting these avoided emissions, your platform can help clients highlight their contributions to sustainability and innovation.
If you have any question on Scope 4 avoided emissions, reach out to the KEY ESG team via the in-platform chat function, or by emailing support@keyesg.com.