Sustainability is becoming a non-negotiable within enterprises worldwide, and disclosing sustainability metrics is something that’s been pushed on them as a result. One prime example of this is Scope 3 Emissions, which are indirect greenhouse gas emissions from an enterprise, and this metric is included in corporate ESG reporting. One of the most significant issues we’ve seen as sustainability practices have risen is that enterprises often overlook or underestimate emissions tied to e-waste and ITAD. We’re going to take a closer look at what enterprises overlook, how it affects sustainability reporting, and how you, as a business, can ensure your reporting is accurate.
What Are Scope 3 Emissions?
Scope 3 emissions are indirect emissions from a company, such as the carbon generated when parts are manufactured or emissions from customers disposing of the product. These emissions are often not accounted for because they are indirect; however, they still affect your sustainability impact. When it comes to emissions, there are Scope 1, 2, and 3 emissions that affect your overall sustainability impact.
Scope 1: Direct Emissions
These emissions are coming directly from the company or from sources it owns, such as company-owned vehicles, fuel combustion from the company building, or manufacturing equipment.
Scope 2: Indirect Energy Emissions
These are emissions produced by areas such as electricity, heating, or cooling that the company buys from a utility provider. Although the company doesn’t directly emit these, it still emits them because it uses energy. Some examples include the electricity used in offices or purchased heating and cooling in buildings.
Scope 3: Indirect Emissions
As we stated, these emissions are indirect emissions that are often “hidden” and forgotten by the company because it does not directly own or control the sources. However, if they are emitted due to the company’s operations or use, they are categorized as scope 3 emissions.
Why Scope 3 Emissions Are Complex to Measure?
Because Scope 3 emissions are often the result of other operations not directly carried out by the company, they can be forgotten or difficult to measure. Usually, a company may forget about specific scope 3 emissions, such as the disposal of its products, simply because the product is no longer in its hands. This also makes it difficult to measure, because the company may not know the exact method the customer is using to dispose of the product, making it harder to determine the amount of emissions generated during disposal.
E-Waste Reporting and Handling
Enterprises often miss E-waste in their reporting due to difficulties verifying its source, inconsistencies, and other factors. This makes it challenging to translate e-waste into scope 3 emissions and report it to ESG investors or others seeking this information. Here are some of the reasons that e-waste is often missed by enterprises in reporting:
Fragmented Processes: There are many stages of the process, including IT, procurement, and sustainability teams, that operate together to report and measure e-waste, which can be challenging to keep up with.
Lack of Visibility: Not every part of the process is easily visible, such as the disposal or tracking of the IT asset after leaving the facility.
Vendor Transparency: If your ITAD company isn’t transparent in its reporting, your reports can become inaccurate, leading to unexplained discrepancies.
Misunderstanding: Sometimes facilities assume that recyclers handle the reporting, not the facility; however, this is not the case. This misunderstanding can lead to missed reports and inaccurate numbers.
Improper E-Waste Handling and Carbon Costs
Improper e-waste handling can result in carbon costs skyrocketing due to inefficiencies or unaccounted steps in the process. For example, emissions from incineration, landfills, and unregulated recycling facilities all contribute to this. Still, if they are not adequately reported, this could lead to inaccurate emission or carbon cost reporting for e-waste handling.
How ITAD Processes Reduce Scope 3 Emissions
ITAD, IT asset disposition, is a reliable source to help reduce scope 3 emissions and ensure that everything is getting reported correctly, even after the device has left the facility. ITAD companies are certified to destroy data and practice environmentally responsible recycling to dispose of your devices, making this process easy to track. They will also use refurbishment and reuse of devices to extend the lifespan of the product, reducing emissions associated with disposal practices. Reporting and documentation are always on par with an ITAD company, as they document the entire chain of custody throughout the disposal process to ensure accuracy for audits and ESG investors.
If you are debating working with an ITAD provider, you must require specific reports and documents from them to support a robust scope 3 reporting process. It’s essential to have transparent downstream reporting, certificates for recycling and data destruction, and emissions-related documentation that brings transparency to their processes. Remember, these practices must align with R2v3, e-Stewards, and other standards to ensure your reporting is accurate and accounted for on all fronts.
Avoid Overlooking E-Waste as an Enterprise
E-waste is by far one of the most overlooked contributors to scope 3 emissions, making it among the most important to document. These emissions account for a large share of your total emissions, and as an enterprise, it’s crucial that your reporting is accurate when showcasing your carbon footprint. ITAD management is a valuable way to track these emissions and reduce your environmental impact, while also building strong ESG credibility and compliance. Because of the complexity of scope 3 emissions and the need to track devices after they leave the facility, it’s crucial to find an ITAD company that handles reporting and maintains documentation efficiently. Contact us and address e-waste in your enterprise with an ITAD partner to stay on track with sustainability.
