What are scope 3 emissions, and how do they affect global warming and pollution?

What Are Scope 3 Emissions?

In the midst of the grave global concern that is climate change  – more and more companies around the world are opting to take in carbon accounting and determine whether scope 1, scope 2, or scope 3 emissions are the main source of the excessive carbon emissions.

More specifically, scope 3 emissions could be the key component to companies truly understanding how their arbitrary activities are doing serious environmental damage. 

But why are scope 3 emissions so important if they aren’t as distinct as scope 1 or scope 2 emissions? 

🚚 Last, but not least, we have Scope 3!

Accounting for your company’s GHG emissions doesn’t just stop at your energy consumption and direct emission. Scope 3 is the focus area of GHG impact that follows a company’s value chain, allowing for decisions to be made all throughout every component of what makes your business what it is.

In the video below, we give you the whole breakdown on what this exactly means and how it could impact your sustainability reporting! 💚

#Scope3 #climatechange #Greenly

What is Scope 3? | Greenly  #climatechange #scope3

Scope 3 emissions are the final category of measurements in carbon accounting where miscellaneous emissions that don’t fall under scopes one or two. 

Activities that could fall under scope three include the use of raw materials, purchased goods or services, transportation such as employee commuting, leased assets, franchises, investments, and business travel.

Because Scope 3 is the most difficult category in carbon accounting to precisely measure because it is general and includes all emissions that don’t fall under scope 1 or scope 2 emissions. 

How are scope 3 emissions different from scope 1 and scope 2 emissions?

Scope 3 emissions are different from scope 1 and scope 2 emissions as they are extremely difficult to clearly delineate; both  casually and mathematically. 

As previously mentioned, scope 3 emissions are any activities, products, or services that a company contributes to that produces  emissions that don’t fall within either scope 1 or scope 2 emissions.

Well, carbon accounting is split into three different categories of carbon  emissions, otherwise known as, “scopes”. Emissions. Scope emissions 3,  2, and 1 seek to simplify the process of measuring one’s carbon  footprint. 

The Greenhouse Gas Protocol has clarified that the categories of the scopes – are determined by where the carbon  emissions come from. This could be from industrial activity, vehicle use, electrical consumption caused by heating or cooling systems, or  other various emissions that do not fall under scopes one and two. 

Scope 1 emissions are carbon emissions that come directly from industrialization habits or the vehicles used in your company. So, the carbon impact of your production line or how often you’re filling up your company car for gas that pollutes the planet would all contribute to scope 1 emissions. 

Any use of fuel, non-renewable energy sources like fossil fuels, greenhouse gasses, or oils, chemical leaks, and the energy or electricity used for your offices or other various facilities would also fall under scope one emissions as well. 

Components that qualify as scope 2 emissions include anything that requires energy consumption, such as electricity needed to run a rented office space or leased vehicles, such as fuel or the electricity required to run central heating or air conditioning. 

What's included a company's carbon footprint? How to measure corporate Greenhouse Gas (GHG) emissions? Every business leader should know what to consider as part of their company footprint, this video explains what's included.

Often we tend to think about facilities, energy use, and perhaps the fleet - but these account only for a part of a company’s total carbon footprint. The Sustainability Speaker Susanna Hasenoehrl helps you to better understand this, walking you through the concept of Scope 1, 2 and 3 emissions.  

Scope 1 and 2 emissions arise from a company’s operational activities, such as a production facility, or heating or cooling an office. These can be controlled somewhat easily - for example, by switching to renewable energy, or to an electric fleet.

So what about Scope 3? Pukka, a Unilever brand, reports that 49% of their emissions come from boiling the kettle, to make a 'cuppa'. This is an example of Scope 3 emissions, which are more indirect - yet related to the usage of a company’s products and services. 

For most companies, Scope 3 makes up most of their carbon footprint. Scope 3 emissions can be quite difficult to measure, as it includes things like emissions from waste - when a product is disposed of - the supply chain, outsourced activities, and even business travel.

Nonetheless: when you come across a company’s carbon disclosure, do ask whether Scope 1, 2 and 3 emissions are included.

Corporate Carbon Footprint - Understanding Scope 1, 2 and 3 Greenhouse Gas (GHG) Emissions

Essentially, scope 1 and 2 emissions are 100% subject  to change by the company itself. In other words, all of the emissions in  scope 1 and scope 2 are contingent on the company’s business model and  future actions. Scope 3 emissions are also caused by actions or  activities of the company, but are actually created by an outside source  instead of within the company itself.  

Think of it this way: say you are told to go on a business trip from New York City to London. On average, a one-way flight alone across the Atlantic creates nearly six hundred kilograms of carbon dioxide emissions, or 0.59 tonnes of carbon dioxide emitted into the atmosphere. 

Of course, the employee that is going on the business trip is the reason why these carbon emissions are being produced, but the employee and company in question itself can’t be responsible or control how many carbon emissions are created from that specific flight.

This is precisely why scope 3 emissions are difficult for a company to reduce. 

Carbon accounting is the method that companies use to determine how many carbon dioxide emissions they are responsible for. 

For instance, through calculating a company’s carbon emissions, carbon accounting can help a company determine how many carbon credits a company should purchase in order to offset their current rate of carbon emissions. Therefore, carbon accounting helps a company or organization fairly decide how to negotiate exchanges for carbon offsets or carbon credits across various sectors. 

Carbon accounting is also referred to as greenhouse gas accounting. 

The main goal of carbon accounting is to provide carbon dioxide and greenhouse gas emissions with a set value so that they can be represented as a financial value in the carbon market. 

Carbon accounting has grown in popularity due to the movement for companies and nations across the globe to achieve net-zero emissions by 2050. Carbon accounting helps companies join the fight against climate change and reduce their carbon footprint. 

Carbon accounting is important because it helps companies identify the largest sources of contributing to their carbon footprint, but that isn’t the only reason why carbon accounting is beneficial.

For instance, carbon accounting is a good first step towards developing corporate sustainability. As climate change continues to grow as a cause for concern, investors and customers alike are seeking to partner or purchase products or services from businesses that seek not only financial success, but environmental sustainability as well. 

Carbon accounting also helps to avoid greenwashing and stimulate financial growth. 

Investors are increasingly interested in companies that are willing to adjust their business model to contribute to the fight against climate change. Therefore, companies that use carbon accounting are likely to improve appeal to new investors, and discover new financial opportunities.

Why are scope 3 emissions more challenging to monitor and calculate than other scope emissions?

As explained in the business trip example above, scope 3 emissions are difficult to have complete authority over due to the  fact that the carbon emitting activity takes place outside the realm of control of the company. 

In other words, if a company wants to reduce their use of plastic – they are able to make that decision. However, the company is indirectly supporting the use of plastic if a flight on a business trip is serving meals in pre-packaged  boxes. 

This makes scope 3 emissions not only difficult to define, but more difficult to measure and actively reduce. 

Alyssa Rade, Chief Sustainability Officer at Sustain.Life walks through everything you need to know about carbon accounting. A must-watch before you get started calculating your carbon emissions and carbon footprint. 

Learn more about Sustain.Life: https://www.sustain.life/

Blog post mentioned at 2:50: https://www.sustain.life/blog/carbon-neutral

Carbon Accounting 101: Why its important and how to get started

Why should a company monitor their scope 3 emissions if they are miscellaneous and difficult to measure? 

Measuring scope 3 emissions can be extremely beneficial for companies, as they will find that most of their excessive greenhouse gas  emissions aren’t occurring within their scope 1 or scope 2 emissions. Ultimately  taking the time to accurately measure a company's scope 3 emissions can lead to opportunities to reduce operational costs while also lowering  their carbon footprint. 

Other benefits of a company measuring their scope 3 emissions include assessing where the  strongest carbon dioxide emissions are being produced in their supply chains, the opportunity to reduce those energy-sucking sectors and seek renewable energy resources instead, and to improve overall energy efficiency. 

Also, measuring scope 3 emissions can help a company determine which suppliers are the most committed to sustainability efforts, and which are only further contributing to the many environmental problems we face today. Measuring scope 3 emissions and establishing this transparency between suppliers and the company can help to create new sustainability goals, prevent greenwashing, and ultimately aid in the fight against climate change. 

Think of scope 3 emissions as if you’re on a new diet plan. Everything  is in order: you’re keeping track of your exercise, daily steps, calorie  intake, reducing your sugar consumption… but let’s say there’s a  category you forget to document that could still have an impact on your  fitness journey progress – like how many hours a night you sleep or your  water intake. 

It’s probable to think that factors outside of the main realm of fitness, like diet and exercise, wouldn’t have an impact on achieving  your overall goal – but it can. The same goes for scope 3 emissions; scope 3 emissions could be preventing you and your company from reaching your carbon reduction goals. 

All  in all, measuring scope 3 emissions may seem trite and ineffective, but the truth is – discovering the idiosyncratic components of your company that are contributing to excessive carbon emissions and climate change and help to create a more positive, environmentally friendly working atmosphere where your employees will be more motivated to reduce their own carbon footprint as well. 

How can you and your company start reducing your carbon emissions? 

Carbon accounting is a great way to determine where the majority of your carbon emissions are coming from, but what are some  baby steps that you and your company can take to start reducing your carbon footprint?

Here are 3 small steps your company can take to reduce their overall carbon emissions and ultimately join the fight against global warming.

1. Turn off lights, heating, and air conditioning systems

These days, with so many electronics, cars, and phones automatically adjusting to particular scenarios, it’s easy to  accidentally leave the air conditioning on in your car or to forget to shut off the light in your room before leaving the house. An easy way to  reduce your electrical consumption and your carbon footprint is to make sure that inhabited spaces aren’t using superfluous electricity when the space isn’t occupied. 

Besides reducing your electrical consumption and helping the environment, monitoring your electrical activity can help your company save some money! 

2. Provide employees with public transportation

With all of the plentiful, environmentally friendly methods of transportation these days – there’s really no need to go through all the trouble of gassing up your car and further polluting the environment with greenhouse gas emissions.  ‍

Opt for the metro, bus, bike or scooter subscriptions, or even a rideshare to reduce your carbon emissions. 

This also provides the opportunity for employees to exercise more and save money from the incessantly increasing price of gas! 

3. Sublease or Stop Renting Unoccupied Spaces

You know how sometimes you’ll sign up for a subscription service to watch one particular show or purchase a certain product, and then never use that subscription service again – but still have automatically recurring deductions from your bank account unknowingly because you forgot to cancel said subscription?

You’re losing money that you don’t need to be, and the same goes for your company renting spaces or equipment that aren’t being used as much as they should be. 

Evaluating which rented vehicles, co-working spaces, or companies that aren’t being used on a daily basis and aren’t worth the environmental upkeep is an excellent way to reduce your carbon emissions and fight against climate change. 

If reading this article about scope 3 emissions has made you interested in reducing your carbon emissions to further fight against  climate change – Greenly can help you!

Greenly can help you  make an environmental change for the better, starting with a carbon  footprint assessment to know how much carbon emissions your company  produces.

Click here to learn more about Greenly and how we can help you reduce your carbon footprint. 

In this article, we’ll explore everything you need to know about REACH – from its key objectives and processes to its impact on businesses and the environment.

Everything you need to know about the REACH regulation

Chemicals are everywhere – from the cleaning products under your sink to the materials used to manufacture your favourite gadgets. But have you ever stopped to think about the risks these substances might pose to human health or the environment? For years, these concerns went unaddressed on a broad scale, leaving significant gaps in regulation. That’s where the EU’s REACH Regulation comes in.

REACH, which stands for Registration, Evaluation, Authorisation, and Restriction of Chemicals, is one of the most comprehensive chemical safety regulations in the world. Since its introduction in 2007, it has been pivotal in ensuring that chemicals are used safely, all while building innovation and sustainability across industries.

👉 In this article, we’ll explore everything you need to know about REACH – from its key objectives and processes to its impact on businesses and the environment.

The REACH Regulation, short for Registration, Evaluation, Authorisation, and Restriction of Chemicals, is the cornerstone of the European Union’s approach to managing the risks posed by chemical substances. Effective since June 1, 2007, REACH was designed to protect human health and the environment while simultaneously promoting innovation and competitiveness within the EU chemicals industry.

At its core, REACH shifts the responsibility for chemical safety onto the companies that manufacture, import, and use these substances. This means businesses must proactively gather data on the properties and potential hazards of the chemicals they work with and submit this information to the European Chemicals Agency (ECHA) for assessment.

But REACH doesn’t stop there. It goes beyond merely identifying risks – it requires companies to implement measures to manage these risks effectively. The regulation also encourages the phase-out of hazardous substances by promoting the development and use of safer alternatives.

One of REACH’s most significant achievements is the creation of a centralised database managed by ECHA. This database not only helps regulators assess chemical risks but also provides consumers and professionals with access to hazard information, ensuring transparency across the board.

REACH applies to all chemical substances manufactured or imported into the EU in quantities of one tonne or more per year.

It ensures a high level of protection for human health and the environment.

By encouraging safer alternatives, it supports innovation in green chemistry.

👉 REACH is more than just a set of rules – it’s a proactive approach to safeguarding our future while driving sustainable progress across industries.

Looking to boost your global exports and sales as a manufacturer or distributor? Look no further than DIATOMIC Marketing and Compliance, the agency led by Martin Shein! Visit www.diatomic.co to learn more and get in touch today.

The Regulation for Registration, Evaluation, Authorisation and Restriction of Chemicals, also known as REACH came into force on 1st June 2007. 

REACH  was put into play to improve the previous EU legislative framework for chemicals and also to improve the protection of human health and the environment.

In essence, any chemical which you import to any country in the EU needs to comply with the REACH regulation. 

The chemicals could be for example liquid or gas form, and may be active or not active.

This regulation doesn’t only apply to huge industrial processes but also to the chemicals which are used in our daily lives. 

Like cleaning products or paints or in items such as clothing or furniture.

There is a lot of information which pertains to the REACH regulation. 

But for the scope of this course we'll touch on the basics which you might need to know. 

So, what is the significance of this regulation? How does it apply?

Well, to comply with this regulation, companies need to check and manage the risks involved with their products that contain or use chemicals.

They then need to DEMONSTRATE to the European Chemicals Agency, also known as ECHA, that they understand the risks. They will also be required to prove how the product can be safely used while also communicating the risk management measures to the downstream users. 

Chemicals which are already regulated by other legislations, like medicines or radioactive substances, may be partially or completely exempted from the REACH requirements.

Now, let's look at the various processes under REACH. 

The registration process applies to chemicals which are imported at amounts greater than 1 tonne a year (that is from the 1st January to the 31st December). 

You’ll need to aggregate the volume of your substance as a substance on its own, in a mixture, and in a product intended to be released.

These substances will need to be registered, if it was not already registered by a different entity. 

There may be cases where some of the ingredients of your substance might still be under review. 

Like for example with our client MyAirShield, one of the active components in their product was still under review when we were trying to register the product. 

We therefore had to register the product in each member state individually.

In order to register, you’ll be required to prepare a registration dossier. This is composed of a technical dossier and, where applicable, a chemical safety report if you manufacture or import more than 10 tonnes of a substance per year. 

How much would this cost?

REACH calculates the price based on two main factors:
How many tonnes are sold in the EU per calendar year, and
The turnover of the company that is registering the substance.

The more tonnage and the larger the income of the company trying to register the substance, the more costly registration will be. 

Next let's look at the EVALUATION process.

This process covers two areas:
Dossier evaluation and
Substance evaluation

The dossier evaluation is where ECHA checks that the registration dossiers contain information of chemicals required by the legislation applicable to your product.

The SUBSTANCE evaluation involves member states which evaluate the substances AFTER they have identified specific concerns.

So the evaluation phase involves an assessment phase where your testing proposals are examined, IF you are looking to do tests. 


The whole point of this evaluation phase is to avoid unnecessary animal testing, especially when involving vertebrate animals. 

You’ll need to wait for ECHA’s decision before you can perform any testing. 


Now, let's look at the AUTHORISATION process.

Okay, so this process is to ensure that the risks related to substances of very high concern (also called SVHCs) are correctly controlled throughout their life cycle. 

A substance can be classified as an SVHC if one or various hazardous properties are identified in it.

These hazardous components are:
Substances that meet the criteria for classification as carcinogenic, mutagenic or toxic for reproduction also called CMRs
Substances which are persistent, bioaccumulative and toxic (or PBT) or VERY persistent and VERY bioaccumulative (vPvB) according to REACH Annex 13
And 3 , substances on a case-by-case basis that cause an equivalent level of concern as a CMR or PBT/vPvB substance 

If a substance is identified as an SVHC, it is included in what is called the Candidate list. 
There are some immediate obligations for suppliers whose substances are on this list.
Transcript
Follow along using the transcript.

REACH: Understanding Chemical Regulations for a Safer World

Before REACH, chemical regulations across Europe were fragmented and often inadequate. Many substances were in widespread use without proper evaluation of their risks to human health and the environment. Action was typically reactive – problems were addressed only after evidence of harm emerged, often too late to prevent damage. 

REACH was introduced to change this. It aimed to take a proactive approach, ensuring that the risks of chemicals are identified and managed before they can cause harm. By requiring companies to collect data on the safety of their substances and submit it for review, REACH set a new standard: no data, no market.

Beyond safety, REACH also sought to encourage innovation. By pushing companies to phase out hazardous substances in favour of safer alternatives, the regulation became a driver for research and development in green chemistry. This focus on sustainability not only helps protect people and the environment but also strengthens the EU’s position as a leader in the global chemicals industry.

REACH wasn’t just about fixing the gaps in regulation. It was about setting a new benchmark for chemical safety and ensuring the EU remains at the forefront of sustainable and competitive practices. It’s a regulation designed to protect and promote progress. 

Examples of banned substances under REACH and why they are banned

REACH’s stringent evaluation and restriction processes have led to the banning of numerous chemicals that pose significant risks to human health and the environment. These bans highlight REACH’s proactive approach to reducing exposure to hazardous substances and encouraging safer alternatives. Below are some examples of substances that have been restricted or banned under REACH, along with the reasons behind these decisions. 

<table>
  <thead>
    <tr>
      <th>Substance</th>
      <th>Reason for Ban</th>
      <th>Impact of the Ban</th>
    </tr>
  </thead>
  <tbody>
    <tr>
      <td>Chromium VI compounds</td>
      <td>Highly toxic and carcinogenic, posing risks to workers and causing soil and water contamination.</td>
      <td>Driven innovation in safer alternatives for metal finishing, significantly reducing occupational exposure and environmental contamination.</td>
    </tr>
    <tr>
      <td>Asbestos</td>
      <td>Linked to severe health impacts such as lung cancer, asbestosis, and mesothelioma. Previously widely used in construction and insulation.</td>
      <td>Phased out asbestos-containing materials, protecting workers and the public from long-term health risks.</td>
    </tr>
    <tr>
      <td>Lead in paints</td>
      <td>Highly toxic, particularly to children, causing neurological damage and developmental delays.</td>
      <td>Reduced public health risks and encouraged the development of safer, lead-free alternatives.</td>
    </tr>
    <tr>
      <td>Phthalates (e.g., DEHP, DBP)</td>
      <td>Used as plasticisers but linked to reproductive toxicity and hormonal disruptions.</td>
      <td>Encouraged the use of non-toxic plasticisers in consumer products, ensuring safer toys, packaging, and other items.</td>
    </tr>
    <tr>
      <td>PFAS (per- and polyfluoroalkyl substances)</td>
      <td>Persistent 'forever chemicals' that bioaccumulate and are linked to cancer and immune system suppression.</td>
      <td>Phasing out PFAS promotes eco-friendly alternatives and improved waste management practices.</td>
    </tr>
  </tbody>
</table>


Recent updates to REACH and related regulations

The REACH Regulation and its related frameworks are continuously evolving to address emerging concerns and improve chemical safety. The most recent update is the revised Classification, Labelling, and Packaging (CLP) regulation, which came into force on 10 December 2024. These updates are designed to enhance the identification, classification, and communication of chemical hazards, ensuring that businesses and consumers have access to clear, accurate information. 

Key changes under the revised CLP regulation:

Clearer classification rules: New guidelines ensure consistent classification for mixtures and multi-constituent substances, with a greater focus on grouping chemicals.

Improved labelling requirements: Digital labelling rules aim to make hazard information clearer and more accessible, especially for products sold at refill stations.

Expanded regulatory authority: The European Commission can now request classification proposals from ECHA or EFSA, increasing harmonised oversight.

New hazard classifications: Classes for endocrine disruptors, PBT, and PMT substances are fully implemented, targeting high-risk chemicals.

Updated reporting obligations: Companies must update REACH dossiers or CLP notifications to align with the revised rules and classifications.

💡 Companies are encouraged to review their portfolios and update classifications as needed. Proactive compliance not only ensures adherence to the new rules but also demonstrates a commitment to safety and sustainability in an increasingly regulated market.

How does REACH compare to regulations in other countries?

The EU’s REACH Regulation is often considered one of the most comprehensive and stringent chemical safety frameworks in the world. It sets a high standard for identifying, managing, and restricting hazardous substances, but how does it compare to regulations in other regions, such as the United States? 

One key distinction is that REACH operates on a “precautionary principle”. This means that substances must be proven safe before they can be marketed or used in the EU. In contrast, regulations in countries like the US often take a more reactive approach, requiring evidence of harm before action is taken to restrict or ban a chemical. For example:

Asbestos: While asbestos is heavily restricted and essentially banned in the EU, its use is still permitted in certain applications in the US.

Phthalates: The EU has strict restrictions on phthalates like DEHP due to reproductive toxicity concerns, whereas regulations in the US are narrower in scope and often specific to certain products like children’s toys.

REACH applies to nearly all chemical substances, including those in everyday products like electronics, furniture, and cosmetics. This broad applicability contrasts with the US Toxic Substances Control Act (TSCA), which focuses more narrowly on industrial chemicals, leaving some consumer goods less regulated.

Proactive substitution of hazardous chemicals

REACH places significant emphasis on phasing out Substances of Very High Concern (SVHCs) and encourages companies to adopt safer alternatives. In the US, while there is growing attention on safer substitutes, this is not yet a regulatory requirement on the same scale as REACH.

The EU’s “right to know” provisions under REACH (eg. Article 33) allow consumers to request information on whether a product contains SVHCs. Such consumer rights are not as prominently featured in other chemical safety regulations.

The EU’s leadership in chemical safety often sets a benchmark for other countries. However, these differences also create challenges for companies operating globally. A substance restricted under REACH may still be allowed in other regions, leading to discrepancies in product formulations and compliance strategies. For example, cosmetics containing certain parabens or PFAS may still be marketed in the US, despite bans in the EU.

REACH is built around four core processes – registration, evaluation, authorisation, and restriction. Together, these form a comprehensive framework to ensure the safe use of chemicals throughout their lifecycle. Here’s how each component works: 

At the heart of REACH is the principle of “no data, no market”. Any company manufacturing or importing chemical substances into the EU in quantities of one tonne or more per year must register these substances with the European Chemicals Agency (ECHA). This involves providing detailed information about the substance’s properties, potential hazards, and safe use.

The registration process requires collaboration between companies working with the same substances to reduce duplication and costs. For many businesses, this stage is resource-intensive but critical – without a valid registration, the substance cannot be legally marketed in the EU.

Once substances are registered, ECHA and the member states assess the information submitted. This evaluation phase has two main goals:

Compliance checks: Ensuring the data meets regulatory requirements.

Substance evaluation: Identifying any risks to human health or the environment that may require further investigation.

If concerns arise, ECHA can request additional testing or restrict a substance’s use.

Some chemicals, known as Substances of Very High Concern (SVHCs), pose significant risks. These include carcinogens, substances toxic to reproduction, and those that persist in the environment. Such substances are added to a list requiring authorisation for specific uses.

The authorisation process pushes companies to seek safer alternatives. While these substances can still be used in limited cases where no viable substitute exists, businesses must prove their use is justified and that risks are adequately controlled.

For substances that present unacceptable risks, REACH can impose restrictions or outright bans. This ensures that dangerous chemicals are managed effectively or removed from the market entirely, protecting both consumers and the environment.

One of the defining features of REACH is its broad applicability. It doesn’t just affect chemical manufacturers, its reach extends across a wide range of industries and companies. If your business deals with chemicals in any capacity, it’s likely you have obligations under REACH. Here’s a breakdown of who the regulation applies to:

If you produce chemical substances in the EU – whether as raw materials for other industries or for use in your own products – REACH directly applies to you. Manufacturers are responsible for identifying risks associated with their substances and providing safety information through registration with ECHA.

Importing chemicals, mixtures, or even finished goods like furniture or electronics into the EU comes with REACH responsibilities. If the substances in these products exceed the one-tonne annual threshold, it’s your duty as the importer to ensure they are registered and meet REACH requirements.

Many companies use chemicals as part of their production or professional activities without realising they may have obligations under REACH. For example:

A furniture maker applying varnishes and adhesives.

A cleaning company using chemical solutions.

While downstream users don’t need to register substances themselves, they must ensure the chemicals they use are sourced from REACH-compliant suppliers and that they follow safety guidelines provided in the registration dossiers.

If you’re based outside the EU and exporting products to the EU, you’re not directly bound by REACH. However, compliance becomes your responsibility if you appoint an EU-based “only representative” to handle registrations on your behalf. Otherwise, it’s the importer’s obligation.

The bottom line: REACH’s scope is vast and touches almost every sector – from agriculture and construction to cosmetics and electronics. Even if you’re not directly manufacturing or importing chemicals, as a downstream user, your role in the supply chain could still bring REACH obligations. Ignorance of the regulation isn’t a defence - ensuring compliance is a shared responsibility across industries.

Enforcement mechanisms for non-compliance

REACH is a regulation with serious implications, and its effectiveness hinges on robust enforcement. Ensuring compliance across the EU is critical to achieving its goals of protecting human health and the environment. This is why REACH has a well-defined enforcement framework to address instances where companies fail to meet their obligations.

Enforcement of REACH falls primarily to the national authorities of each EU member state. These bodies are responsible for monitoring compliance and taking action when violations occur. This may include:

Conducting inspections of manufacturing sites, import operations, and downstream users. 

Auditing company records to ensure accurate registration and reporting.

Verifying that restricted substances are not being marketed or used unlawfully.

Non-compliance with REACH can result in significant penalties, which vary by country. These can include:

Fines: Financial penalties can range from moderate sums for minor breaches to substantial fines for severe or deliberate violations.

Market restrictions: Companies that fail to register their substances or comply with authorisation requirements may find their products banned from the EU market.

Criminal charges: In extreme cases, where violations pose a direct threat to public health or the environment, criminal proceedings may be initiated.

❗️The "no data, no market" principle underpins REACH enforcement. Substances without valid registration cannot legally be manufactured or imported into the EU.

The European Chemicals Agency (ECHA) plays a central role in REACH enforcement by:

Managing the central database for chemical registrations.

Supporting national authorities with compliance checks.

Providing scientific and technical guidance to ensure consistent enforcement across member states.

To prevent non-compliant products from entering the EU, customs authorities work closely with national enforcement agencies. Importers must provide evidence of REACH compliance for their goods, ensuring that the regulation is upheld even for products sourced outside the EU.

REACH also includes mechanisms for public oversight. Consumers have the right to request information about whether products contain Substances of Very High Concern (SVHCs), holding companies accountable for transparency in their supply chains.

Chemicals can cause significant harm to the environment if not properly managed. Persistent substances, such as PFAS, accumulate in ecosystems, contaminating water supplies and affecting wildlife health. Heavy metals like lead and mercury can disrupt aquatic life, while certain pesticides have been linked to biodiversity loss, including the decline of pollinators like bees. The impact of hazardous chemicals isn’t just local – it can spread across ecosystems, leading to long-term consequences for soil, air, and water quality.

At its core, REACH isn’t just about managing risks – it’s about creating a safer and more sustainable future. By addressing the impact of chemicals on the environment, the regulation plays an important role in protecting ecosystems and promoting long-term sustainability.

One of REACH’s primary objectives is to minimise the release of harmful substances into the environment. Through its evaluation, authorisation, and restriction processes, the regulation ensures that substances with significant risks are either tightly controlled or removed from the market entirely. This reduces pollution in air, water, and soil, safeguarding natural habitats and biodiversity.

REACH pushes industries to innovate by encouraging the replacement of hazardous substances with safer alternatives. Substances of Very High Concern (SVHCs), for example, are subject to strict authorisation requirements, motivating companies to invest in research and development for sustainable solutions. This shift not only benefits the environment but also drives progress in green chemistry.

The public database maintained by the European Chemicals Agency (ECHA) is a powerful tool for environmental protection. By making information about chemical hazards accessible, REACH empowers businesses, regulators, and consumers to make informed decisions. This transparency creates accountability and helps to build trust in the safety of products used across industries.

REACH complements broader EU sustainability initiatives, including the European Green Deal and the circular economy action plan. By ensuring that chemicals are managed responsibly throughout their lifecycle – from production to disposal – the regulation supports the shift towards a cleaner, more resource-efficient economy.

For many businesses, REACH compliance represents a significant shift in how they handle chemicals. While the regulation has brought undeniable benefits in terms of safety and sustainability, it also comes with its fair share of challenges. From administrative complexity to financial burden, companies often face hurdles when meeting REACH’s requirements. 

<table>
  <thead>
    <tr>
      <th>Challenge</th>
      <th>Description</th>
      <th>Solution</th>
    </tr>
  </thead>
  <tbody>
    <tr>
      <td>Administrative burden</td>
      <td>Companies are required to gather extensive data about the properties, hazards, and uses of their substances. Registration involves detailed technical documentation and collaboration with other registrants for shared substances.</td>
      <td>Hire dedicated compliance experts or external consultants to guide the registration process. Invest in internal training programs to upskill teams on REACH requirements. Use digital tools or software to manage documentation and streamline workflows.</td>
    </tr>
    <tr>
      <td>Financial implications</td>
      <td>Compliance costs include testing, registration fees, hiring specialists, and potential updates as regulations evolve. These expenses can be particularly challenging for SMEs with limited budgets.</td>
      <td>Develop a clear budget plan that accounts for REACH compliance. SMEs can explore financial support options, such as EU grants or subsidies designed to assist with regulatory compliance. Collaborate with other registrants to share testing costs.</td>
    </tr>
    <tr>
      <td>Complex supply chains</td>
      <td>Businesses reliant on long supply chains often face difficulty ensuring that all substances meet REACH requirements. Inaccurate or incomplete information from suppliers can threaten compliance.</td>
      <td>Conduct thorough due diligence by auditing suppliers regularly. Establish clear communication channels and request documented proof of REACH compliance. Implement supply chain management software to monitor compliance across all partners.</td>
    </tr>
    <tr>
      <td>Substitution pressures</td>
      <td>REACH encourages replacing Substances of Very High Concern (SVHCs) with safer alternatives. Identifying substitutes that meet technical and economic needs can require significant R&D investment.</td>
      <td>Allocate resources for research and development into safer alternatives. Partner with industry groups or academic institutions to share knowledge. Leverage government incentives or grants for innovation in green chemistry to offset development costs.</td>
    </tr>
    <tr>
      <td>Navigating evolving regulations</td>
      <td>REACH is continually updated with new substances added to restricted or authorisation lists, requiring businesses to adapt and reassess compliance on an ongoing basis.</td>
      <td>Subscribe to updates from the European Chemicals Agency (ECHA) to stay informed about regulatory changes. Appoint a dedicated compliance officer or team to monitor updates and implement changes. Use compliance software to track and adjust processes.</td>
    </tr>
  </tbody>
</table>


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Greenly - The go-to carbon accounting platform for your business!

Meeting sustainability goals and managing environmental impact can be challenging, but Greenly is here to help. Our solutions help businesses reduce emissions, improve efficiency, and build more sustainable operations.

Tracking and analysing emissions: Greenly’s platform monitors your Scope 1, 2, and 3 emissions, identifying where your activities contribute the most to your carbon footprint. This allows you to focus on impactful changes.

Supply chain sustainability: We help you assess and optimise your supply chain, ensuring it aligns with sustainability goals. Our database of sustainable suppliers makes it easier to transition to greener alternatives.

Lifecycle assessments (LCA): Greenly conducts detailed lifecycle assessments to evaluate the environmental impact of your products, helping you identify opportunities to reduce emissions and adopt safer materials. 

Tailored action plans: Our platform offers industry-specific recommendations, providing clear steps to reduce emissions and achieve sustainability objectives.

Streamlined compliance reporting: Greenly streamlines the reporting process, ensuring your business stays ahead of regulatory changes while saving time and resources.

Why choose Greenly?
Greenly combines expertise with actionable insights, helping businesses achieve sustainability goals while improving efficiency. By partnering with us, your company can confidently take steps toward a greener future - get in touch with us today to find out more. 

What are scope 2 emissions, and how do they affect global warming and pollution?

What Are Scope 2 Emissions?

As climate change continues to grow as a global problem, businesses around the world are taking an interest in carbon accounting in order to discover what the primary culprits of their excessive carbon  emissions are.

Carbon accounting is broken down into three well-known categories called, “scopes”. But how are scope 2 emissions different from scope 3 and scope 1 emissions?

Scope 2 emissions are the second category of measurements in carbon accounting. Scope 2 emissions include energy that is consumed or emitted from rented or leased office spaces, vehicles, or the fuel or electricity necessary to run heavy equipment like central heating or air conditioning. 

Scope 2 emissions are anything that the company is required to purchase in order to fuel or operate a piece of equipment or office space within the organization. Therefore, it can be said that scope 2 emissions are the best representation of how a company seeks to source its energy sources, and more importantly –  scope 2 emissions can reveal how effective a company is at actively reducing their carbon footprint. 

We have set to go for net zero GHG emissions by 2035. With 792,000 tons of CO2 equivalent as the baseline from 2019, we intend to reduce our emissions by 20% by 2025 and by 50% by 2030. This first milestone will be reached largely through the reduction of our scope 2 emissions. How will we tackle this? Watch the video to learn more

Scope 2 Emissions explained

Carbon accounting how companies figure out how many carbon dioxide emissions they are responsible for producing. Carbon accounting helps companies determine how many carbon credits they should purchase to offset their current rate of carbon emissions. In short, carbon accounting allows companies to fairly trade between one another across the sector in terms of carbon offsets and carbon credits. 

The main goal of carbon accounting is to give all emissions a standardised value that can be represented as a financial value in the carbon market.

As more and more countries and companies around the world seek to join the net-zero movement to reduce emissions by 2050,  carbon accounting has drastically grown in popularity – as it serves as  he best first step for companies to understand their own emissions and therefore, seek the best ways to proceed with reducing their carbon footprint.

Carbon accounting is crucial as climate change continues to alarm life around the world, since carbon accounting is the best way for a company to begin their journey towards business sustainability and environmentally friendly habits. However, there are more benefits from carbon accounting that don’t just include reducing global emissions. 

Carbon accounting can help establish corporate sustainability, as the measures needed to reduce emissions recommended by the data provided by carbon accounting in the first place often require changes to the business model to seek more sustainable business practices like reducing plastic waste or implementing more energy efficient equipment – maybe even a carbon capture and storage system. 

Carbon accounting, which is a great first step towards establishing greater transparency, can help prevent greenwashing and open new financial opportunities for companies 

This is because investors and customers are becoming more interested in investing or purchasing products that seek sustainability and don’t add to the already existing problems created by climate change. Companies that use carbon accounting are aiming to be more environmentally aware, which will bode well for the business’s future financial success. 

How are scope 2 emissions different from scope 1 and scope 3 emissions?

Scope 2 emissions are different from scope 1 and scope 3 emissions as they are the only category of emissions that fuel the  source of other emissions.

In other words, scope 2 emissions are a representation of all the electricity or energy used to power any piece of equipment, office space, or various activities that could fall under scope 1 or scope 3 emissions. 

Therefore, it could be said that scope 2 emissions is often the category of carbon accounting that reveals the largest causes of a company’s carbon footprint. 

The process of carbon accounting is split into three different  categories – otherwise known as, “scopes”. These scope emissions seek to simplify the difficult process of determining which sources of activity produce the largest carbon footprint in a company. 

There are three scopes: and each scope represents a different total of carbon  emissions a category in a business model is emitting into the atmosphere.

For instance, scope 1 emissions are directly from the industrialization or vehicle use within the company. Your production line or how many cars the company has can contribute to scope  1 emissions. 

Components that qualify as scope 2 emissions include anything that requires energy consumption, such as electricity  needed to run a rented office space or leased vehicles, such as fuel or the electricity required to run central heating or air conditioning.

Scope 2 emissions are usually anything that is included on an energy bill –  such as steam, heat, and cooling. It is any type of energy that is used  by the company that is generated off-site. 

While they may seem similar, scope 1 emissions and scope 2 emissions are not the same. Scope 1 emissions how much industrialization for the company itself  pollutes the Earth, while scope 2 emissions are how much the electricity  or energy source needed to power the equipment for production pollutes  the Earth.

The difference between scope 1 emissions and scope 2 emissions is that scope 2 emissions are provided  by a third party supplier and aren’t created by the company itself, but  are necessary for the production line. However, the scope 1 emissions  and scope 2 emissions are similar as in the company itself has full  power to directly reduce the impact of these emissions – by changing the  business model, energy consumption, or equipment used.

Making progress to net zero emissions requires leveraging as much data, expertise, and solutions as are available. That is why we asked our internal experts for guidance on effective strategies for addressing Scope 1, 2, and 3 emissions. Watch Sak Nayagam, Tyler Espinoza, and Katherine Canoy, Directors in the 3Degrees Energy and Climate Practice detail how your organization can build a framework and start delivering results on its journey to Net Zero.

Journey to Net Zero: adressing Scope 1, 2, and 3 emissions

Lastly, scope 3 emissions are any various emissions that don’t fall under scope 1 emissions or scope 2 emissions. Scope 3 emissions include using raw materials, purchased goods or services, public transport used by employees, leased assets, franchises, investments, and business travel. 

Scope 3 emissions are the most difficult to calculate, as they are created by a third party source that the company does not have control over – like  an airline flight.

Scope 2 emissions are considered to be indirect emissions which  are created from any energy that is purchased – such as electricity, steam, or heating and cooling systems. A great way to remember what scope 2 emissions are is to think of anything that your company needs to buy in order to operate something within the company: like fuel for a car or electricity for office lights or an air conditioning system. 

Scope 2 emissions are important because without them, nothing in the business would have the power to operate. So, while the actual equipment or offices spaces themselves may have impacted the environment in the manufacturing process – scope 2 emissions reveal how a company is actively seeking to power their equipment in the most energy efficient and carbon reducing manner possible. 

Do scope 2 emissions have a large impact on how much carbon dioxide emissions are produced by a company?

Scope 2 emissions arguably have the greatest impact on how the  rate of carbon emissions a company is responsible for, because any  energy or electricity necessary to power the equipment or office spaces used by the company fall under scope 2 emissions. 

Think about it this way: think of your basic expenses that you need to pay for every month to survive. These expenses usually include your rent,  electricity, heating, water, phone or WiFi service, and grocery bills. 

Scope 2 emissions function a lot like your basic costs. There are fun things you could spend on that aren’t as typical that could increase your personal carbon footprint: like travel or purchasing beauty products that aren’t environmentally friendly – but those aren’t as representative as your daily efforts to mitigate climate change. Those expenditures are more like scope 3 emissions. 

Without basic elements like electricity, much of a business can’t operate at  all – and when companies seek to reduce their emissions, the largest source of carbon emissions usually comes from the most frequently used equipment.

Even within your own home! Think of when people seek to purchase energy efficient washer-dryers or opt to replace their typical plastic containers with glass containers as an attempt to mitigate contributing to any more waste that isn’t  biodegradable. The most commonly used items in daily life, whether personal or in the business world – is often the culprit of the most carbon producing activities the individual person or business is responsible for. 

Scope 2 emissions in carbon accounting can help your company  determine the greatest source of emissions, but what are the other ways  you can reduce your environmental impact that aren’t specific to scope 2 emissions?  

Here are 3 ways that your company can lower  your overall carbon emissions and participate in the fight against climate change.

We are all guilty of using too much electricity, since it’s so easy to accidentally leave the T.V. on or unplug your phone’s charger  before leaving the house. Your company should aim to be more mindful of their electrical consumption, and that can be done by making sure that inhabited spaces consume electricity when the space is left unoccupied. 

Your company could save money while reducing your electrical bill and your environmental impact at the same time

In 2023, there’s really no reason to be making long-term payments for a car that uses gas, which ultimately pollutes the air more  than it already is. Why choose a traditional gas-powered car when there are so many options for getting around town that are both cheaper and better for the environment? 

Employees can take the metro, bike, scooter or ride shares to work to reduce their carbon footprint. 

Spend Based Method, definition

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