I’ve been writing quite a bit about Environmental, Social, and Governance (ESG) programs and how Minitab can help kickstart or advance your effort (catch up with Part 1 and Part 2.) In this blog, we’ll dig a bit deeper into reducing emissions, an increasingly important component of sustainability efforts.
In fact, while the European Commission’s Corporate Sustainability Reporting Directive (CSRD) is mandating new reporting on broader topics like matters such as climate (including greenhouse gas emissions figures), pollution, water resources, biodiversity, workforce, workers in the value chain, and affected communities, the SEC is currently solely focused on emissions and climate change. Here’s how Minitab’s tools can help your business reduce emissions and meet reporting requirements.
What Are the Different Types of Emissions?
As part of emissions disclosure, the SEC is requiring the reporting of Scope 1, 2, and 3 Emissions.
Scope 1 Emissions are direct emissions from sources that are owned or controlled by the company. This includes emissions from activities like running company-owned machinery, vehicles, and facilities. For example, if a company operates a factory, the emissions from its equipment and heating systems are Scope 1 emissions.
Scope 2 Emissions are indirect emissions from the consumption of purchased electricity, steam, heat, or cooling. While these emissions are not generated directly by the company, they are a result of the energy the company uses. For instance, if a company buys electricity from a power grid that uses fossil fuels, the associated emissions are classified as Scope 2.
Scope 3 Emissions are all other indirect emissions that occur throughout the value chain of the reporting company. This includes emissions from activities not owned or directly controlled by the company, such as those produced by suppliers, third-party logistics providers, or the use of sold products. Scope 3 emissions are often the largest category for many businesses, covering everything from supplier operations to product transportation and end-of-life disposal.
How To Tackle Each Type of Emission: A Data Driven Approach
Reducing Scope 1 Emissions: Focus on Waste & Efficiency
To reduce Scope 1 emissions, the mandate is simple: reduce the activities that create those emissions. So how does one reduce those activities? By reducing waste and creating efficiencies in manufacturing and supply chain. In manufacturing, improving forecasting to match required production can minimize waste. Minitab’s data analysis tools help:
- Improve Production Yields: Using tools like process improvement and forecasting, you can reduce the number of production runs required, directly cutting emissions.
- Enhance Supply Chain Efficiency: Minitab’s statistical tools help streamline processes like cycle times and deliveries, further reducing Scope 1 emissions.
Reducing Scope 2 Emissions: Energy Conservation with Predictive Analytics
For Scope 2 emissions, energy conservation is key. Minitab can help by:
- Identifying Energy Drivers: Use predictive analytics to help identify the drivers of significant energy consuming activities and where improvements can be made.
- Optimizing Manufacturing Settings: Leverage Design of Experiments (DOE) to test various manufacturing parameters and find energy-efficient solutions that don’t compromise output.
Tackling Scope 3 Emissions: Collaborate with Your Supply Chain
Managing Scope 3 emissions involves collaborating with suppliers and monitoring their emissions reports. Minitab offers:
- Supplier Evaluation Tools: Minitab’s solutions help you assess suppliers' sustainability performance, encouraging greener alternatives.
- Design for Reliability: Use this technique to replace components with recycled materials or more sustainable alternatives, helping reduce your overall carbon footprint.
Achieve Your ESG Goals with Minitab
Reducing emissions is an integral part of any ESG program. Whether you’re cutting Scope 1 emissions through operational efficiency, lowering Scope 2 energy consumption with analytics, or minimizing Scope 3 emissions by partnering with eco-conscious suppliers, Minitab provides the tools to streamline your efforts.
Join Minitab today and discover how our data-driven solutions can help you meet sustainability goals while staying compliant with evolving global regulations.
Ready to reduce emissions?
Talk to our experts today to see how Minitab can help you make meaningful, measurable progress toward your ESG objectives.
