Article 5 min read
As easy as 1-2-3? Decarbonisation decoded
What are ‘scope 1’, ‘scope 2’ and ‘scope 3’ emissions? What makes them key to decarbonisation – and what is Sappi doing about them?
We all know that cutting carbon emissions is key to mitigating climate change. But what does the associated jargon refer to? And what is Sappi itself doing to make the changes needed?
Scope 1 emissions
These refer to direct greenhouse gas emissions – the carbon released from sources owned or controlled by a business or organisation. Think industrial boilers, for example.
We all know that, if we are to make meaningful progress towards decarbonisation, these ‘scope 1 emissions’ need to be reduced on an industrial scale.
This is why, at Sappi, we’ve been making big investments at sites such as Gratkorn in Austria and Kirkniemi in Finland – switching from burning coal for powering our mills to using biomass from unused wood remnants and other residual materials.
Last year we slashed our scope 1 emissions by no less than 90% at Kirkniemi.
And by the middle of this year at Gratkorn, similar major investment in biomass infrastructure will allow for a 55% reduction in the mill’s scope 1 emissions compared to 2019.
But we’re not stopping there.
Those are just two examples of the 80 projects that Sappi Europe is implementing across our mills as part of our decarbonisation roadmap – with the result that already last year nearly 65% of our energy requirements were sourced from renewables.
Scope 2 emissions
These emissions are released as a result of all of us purchasing energy to power our lives and needs – which, in the case of the paper industry, means purchasing electricity to light, heat and sometimes even help power our paper mills.
So, if companies like Sappi are serious about decarbonisation, we have to get serious about how we purchase our electricity.
Which is why we’re innovating.
At our Maastricht mill in the Netherlands, we have installed e-boilers that allow the mill to switch between using renewable energy purchased from the national grid and natural gas – which also helps stabilise the supply of clean energy for everyone else.
How so?
Because the Netherlands is one of those countries where renewable energy relies largely on naturally unpredictable wind and solar. So, when the national grid operator has a good supply of power – e.g. when the wind is blowing steadily or consumers need less heating at home – we turn down our gas turbine and turn up our e-boilers.
But when the grid operator has a shortage of power, we help by turning up our gas turbine and turning down the e-boilers. All this with a full activation time, either way, of no more than five minutes.
It’s a win-win solution. Not least because at Maastricht our combined scope 1 and 2 emissions are expected to reduce 14% by next year – and 30% by 2030.
At the same time, the Dutch national grid’s path to renewable energy has been made more secure and predictable thanks to the mill’s ability to help stabilise the electricity grid for consumers across the country.
Scope 3 emissions
We call Scope 3 emissions ‘life cycle’ emissions, because they arise right across the value chain of a business, both upstream and downstream.
These so-called ‘indirect’ emissions come from the manufacture of the raw materials purchased by a company like Sappi, transporting goods, business travel, employees commuting to and from work and the waste generated as part of a company’s operations.
So, it’s no surprise that scope 3 emissions create a global accounting challenge. They are complex to calculate not least because the data is difficult to compile – accurate, product-level, primary emission data from a potentially vast number of stakeholders.
But that doesn’t mean we shouldn’t still do our best.
Sappi has been actively engaging with our raw material suppliers to compile data on their greenhouse gas emissions. And this kind of collaboration is important not only to allow us to quantify our Scope 3 emissions, but also as a means to exploring joint climate action and decarbonisation opportunities.
Put simply, compiling this data helps us to spot where in our value chain we can help our suppliers cut their scope 1 emissions and so reduce our Scope 3 emissions.
Alongside this, we’ve also been working in partnership with customers and suppliers to pilot further, scalable Scope 3 solutions, including recent e-truck pilot schemes to replace diesel-powered distribution vehicles with electric alternatives. And we’re seeking further such opportunities.