Strategic management of corporate value chain emissions - Exploring the drivers and barriers for scope 3 management

Abstract: Problem definition In recent years companies have developed carbon management strategies (CMS) in order to take greater responsibility for their climate impact. However, these have focused on direct emission sources, neglecting substantial emissions downstream and upstream in the value chain. This presents a problem since emission reduction efforts might be misdirected, resulting in ineffective CMS. To address this issue, the Greenhouse Gas Protocol developed the scope 3 emission standard, yet, adoption is slow and companies are struggling. Purpose The purpose of this study is to gain a deeper understanding of scope 3 emission management by investigating the drivers as to why companies choose to manage their emissions in scope 3, and the barriers for future development. Methodology In order to fulfill the purpose of this study, a qualitative interview study was conducted with a sample of eleven large Swedish corporations. The results were analyzed with support from a theoretical framework that was established based on acknowledged theories from the field of CMS, as well as previous findings regarding scope 3 emission management. Conclusions The main driver to scope 3 management was found to be perceived profitability, still, because of the barriers of external uncertainty and measurement difficulties, it remains unclear whether scope 3 management really generates increased profits or reduced emissions. For further improvement of scope 3 management, an interplay between senior leadership in companies and policy makers is required in order to provide the right conditions for development.