Verra partners with start-up to drive action on Scope 3 emissions
Quantum Commodity Intelligence – US-based carbon standard Verra has signed a memorandum of understanding with Luxembourg-based start-up SustainCert to help companies to report, track, and measure the impact of their interventions on Scope 3 (value chain) greenhouse gas (GHG) emissions.
The partnership will use Verra's Scope 3 Standard (S3S) Program and SustainCert's auditing capabilities to help standardise terminology and provide clarity to companies.
Many companies and organisations already set carbon cutting goals based on Scope 1 (direct ) and Scope 2 (indirect from electricity use) emissions, but only a few have established targets for Scope 3.
The absence of scope 3 targets is due mainly to the difficulty in tackling these indirect emissions and as the energy sector has acknowledged, the negative impact that rigorous targets could have on sales, revenues and profits.
Verra's S3S Program, which has been under development for last two-and-a-half years, is expected to create a pathway for companies to certify value chain interventions and claim those units against public targets.
Under the collaboration, Verra and SustainCert will create an interface between the NGO's registry and SustainCERT's Vivid platform to unlock inventory claims in line with international standards.
"It is critical we find a way to unlock that investment in Scope 3 actions together, because otherwise, we will be seeing companies delaying or withdrawing investments in climate action," said Mandy Rambharos, Verra chief executive.
Businesses are struggling to make tangible cuts to their indirect Scope 3 emissions in the face of a lack of clarity and limited financial incentives, according to a survey conducted last month on behalf of SustainCert.
Only half of big corporates across the US and Europe feel fully prepared for future regulations around Scope 3 emissions.
The poll of 500 sustainability leaders at large companies across US and Europe showed that, while nearly 70% of those polled are reporting their Scope 3 emissions, and a further 22% plan to do so in the next year, "there are significant barriers to going beyond simply reporting to real decarbonization".
SustainCert was founded in 2018 by another global registry, the Global Standard, but operates independently.
