Scope 3 Emissions Reduction: A New Methodology for Corporate Climate Actions Beyond Value Chains

Businesses have a huge responsibility in accelerating the move towards a decarbonized future. Benefiting from their ability to connect a wide range of stakeholders, digital platforms are in a frontline position to shape the new business framework to address climate change. These new forms of business structuring and functioning from companies offer opportunities to make positive GHG impacts beyond Scope 1, 2 and 3.

Alibaba, jointly with China Environmental United Certification Center (CEC), published Scope 3+ Emissions Reduction: A New Methodology for Corporate Climate Actions Beyond Value Chains, with expert contributions from the Carbon Trust. The report is to understand Alibaba’s positive impact that has not been addressed by the GHG accounting frameworks and methodologies available. Additionally, the report hopes to inspire more companies to start emissions reduction discussions and take action beyond their value chain. Through a systematic view and approach to measure these impacts, companies can gain a fresh perspective in the new competitive landscape under climate change and unlock new commercial opportunities while achieving their climate ambitions.

The report provides a methodology for calculating scope 3+ reductions, its goal is to help business quantify the impact of emissions beyond their current scope 1, 2 and 3, alongside the standard scope 1, 2, and 3. The report outlines definitions for ‘Scope 3+’ and ‘Scope 3+’emission reduction, explains the relation with scope 1, 2 and 3 emissions and avoided emissions respectively; Detailed accounting principles and methodology to calculate and report on ‘Scope 3+’ emissions reduction; A process to help companies integrate ‘Scope 3+’ emissions reduction within their businesses and climate strategies.