Page 36 - OHS, June 2024

PPE: HAND PROTECTION
Driving Sustainability: The Role of ESG Metrics and Sustainable
PPE in Reducing Scope 3 Emissions
Investors and stakeholders increasingly emphasize the importance of environmental, social and governance metrics to drive corporate sustainability and ethical business practices.
BY RODNEY TAYLOR
Is it possible to do well while doing good? Environmental, social and gov- ernance (ESG) describes a set of busi- ness performance metrics that are fo-
cused on environmental sustainability and ethical issues. ESG metrics hope to drive companies to do just that. ESG has been one of the most buzz-worthy terms in the busi- ness community for the last several years.
Increasingly, investors are applying these non-financial ESG factors as part of their analysis frameworks. Growth in ESG has been nothing short of amazing. A 2022 study by the Capital Group found that nearly 90 percent of investors consider ESG issues as a part of their investment analysis. Stake- holders hope that greater inclusion of ESG factors in investment decisions will contrib- ute to more stable and predictable markets. This thinking is particularly relevant for en- vironmental risks, the “E” in ESG. The “E” considers a company’s utilization of natural
resources and the effect of its operations on the environment, both in its direct opera- tions and across its supply chains.
Emissions Scopes: Focus on
Scope 3 Emissions for PPE
Every business has carbon emissions (or carbon footprint) associated with its nor- mal operations. These emissions are gen- erally categorized into “scopes” to help bucket emissions sources and associated responses.
Emissions scopes are defined as follows:
■ Scope 1. Direct emissions from com- pany assets. Scope 1 includes emissions from combustion, process emissions and accidental emissions from leaks and spills.
■ Scope 2. Indirect emissions from pur- chased energy like heating and cooling build- ings and running production processes.
■ Scope 3. All other emissions as- sociated with a company’s activities. This
includes all other indirect emissions as- sociated with a company’s upstream and downstream operations.
A good shorthand to understand what each scope includes is that Scope 1 pertains to what the company burns, Scope 2 relates to the energy the company buys and Scope 3 is everything else. All the indirect emis- sions from goods purchased by the com- pany are included in Scope 3 emissions.
Right now, there is a heavy focus on Scopes 1 and 2 emissions, particularly for water conservation and direct energy con- sumption. But Scope 3 emissions are just as important and can provide low-hang- ing fruit for sustainability gains. Scope 3 emissions are often the largest culprit of a company’s carbon footprint, potentially ac- counting for more significant carbon emis- sions than Scopes 1 and 2 combined. Just think about all the purchased plastics in a typical manufacturing facility, all of which represents Scope 3 carbon emissions.
Another key issue for end users is that Scopes 1 and 2 reductions almost always require capital investment. Many Scope 3 emissions reductions can be achieved with- out any additional investment at all. For ex- ample, just by converting from a non-sus- tainable glove to a sustainable one, an end user can claim credit for emissions reduc- tions, all with no additional investment. As a result, there will be increased focus on reducing the carbon footprint associated with purchased goods, such as PPE.
End users looking to reduce their Scope 3 emissions will need suppliers that can provide sustainable products and have done the work to reliably quantify the car- bon emissions of the products they provide.
Sustainable Technologies
and Sustainable Reporting for PPE There have been huge advancements in sustainable materials that provide solutions that not only perform on par with non- sustainable alternatives but can also offer a
34 Occupational Health & Safety | JUNE 2024
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