世界經(jīng)濟(jì)論壇-供應(yīng)鏈脫碳：印度范圍3行動(dòng)手冊（英）-2024.1

IncollaborationwithKearneyand

ObserverResearchFoundationDecarbonizing

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@GettyImagesContentsForeword030405111516172021303335404142ExecutivesummaryIntroduction1Decarbonizingsupplychains:ChallengesinIndia2Scope3emissionsreduction:AplaybookforIndiaAholisticframeworkforScope3emissionsreduction2.1

Step1:CreateScope3baselineanddevelopdatastrategy2.2

Step2:Setscience-basedandbusinesstargets2.3

Step

3:Develop

upstream/downstream

carbon

reduction

strategy2.4

Step4:De?neorganizationalenablers2.5

Step5:Buildroadmapandbusinesscase3Enabling

theScope

3

transformation:

Ten

imperativesfor

government

actionConclusionContributorsEndnotesDisclaimerThisdocumentispublishedbytheWorldEconomicForumasacontributiontoaproject,insightareaorinteraction.The?ndings,interpretationsandconclusionsexpressedhereinarearesultofacollaborativeprocessfacilitatedandendorsedbytheWorldEconomicForumbutwhoseresultsdonotnecessarilyrepresenttheviewsoftheWorldEconomicForum,northeentiretyofitsMembers,Partnersorotherstakeholders.?2024WorldEconomicForum.Allrightsreserved.Nopartofthispublicationmaybereproducedortransmittedinanyformorbyanymeans,includingphotocopyingandrecording,orbyanyinformationstorageandretrievalsystem.DecarbonizingSupplyChains:AScope3PlaybookforIndia2January2024DecarbonizingSupplyChains:AScope3PlaybookforIndiaForewordViswanathanRajendranArunUnniPartner,

KearneyIndiaPartner,

KearneyIndiaSriramGuttaHead,IndiaandDeputyHead,SouthAsia,WorldEconomicForumSamirSaranPresident,ObserverResearchFoundation(ORF)Inanerade?nedbyglobalinterconnectivityandgrowingenvironmentalconcerns,theimperativetoaddressclimatechangehasneverbeenmorepressing.Thejourneytowardsdecarbonizationisnotmerelyamoralorenvironmentalobligation,butisessentialforsecuringthecollectivefutureofhumankind.Theglobalchallengeofclimatechangecallsforcollectiveandconcertedaction,transcendinggeographicalboundariesandindustrysectors.Atthispivotaljunctureinhumanhistory,itisevidentthatthepathforwardmustbeoneguidedbysustainabilityandenvironmentalstewardship.Inthisendeavour,theroleofbusinessesandsupplychainscannotbeoverstated.economicgrowthwithenvironmentalresponsibilityhasneverbeenmorepronounced.Thisreportre?ectsourcommitmenttoequippingIndianorganizationswiththeknowledge,strategiesandtoolsneededtonavigatethemultifacetedchallengeofdecarbonizingtheirsupplychains.We

?rmlybelievethatbusinessesinIndiacanplayatransformativeroleinreducingemissionsandfosteringasustainablefuturefortheworld.Thejourney

todecarbonizesupplychainscanseemdaunting,butitisa

journey

thatbusinessesmustundertakewithconviction.Byadoptingthestrategiesoutlinedinthisplaybook,companiescannotonlymitigate

environmentalimpacts

but

also

unlock

myriadbene?ts.Theseincludecostsavings,enhancedbrandreputation

andtheabilitytothriveinanincreasinglyenvironmentally

consciousglobalmarketplace.ThisreportbytheWorldEconomicForum,KearneyandObserverResearchFoundation(ORF)presentsavitalblueprintforIndianbusinesses,policy-makersandstakeholders.ItunderscoresthecriticalimportanceoftacklingScope3emissions,whichconstituteasigni?cantproportionofacompany’scarbonfootprintbutoftenremainunaddressedduetotheircomplex,interconnectednature.We

wouldliketoextendourgratitudetothededicatedresearchers,expertsandorganizationswhohavecontributedtheirknowledgeandinsightstothisreport.TheircollectiveexpertisehasbeeninstrumentalincreatingacomprehensiveguidethatistailoredtotheuniquechallengesandopportunitiesinIndia.Speci?cally,givenIndia’s

rapidindustrializationanditsburgeoningeconomy,theneedtoalignDecarbonizingSupplyChains:AScope3PlaybookforIndia3ExecutivesummaryInaworldincreasinglygrapplingwiththeandthosethatmakebusinesssenseisessentialconsequencesofclimatechange,theimperativetoreducecarbonemissionshasneverbeenmorepronounced.Thenexusofbusinessandenvironmentalresponsibility,particularlyinthecontextofsupplychains,formsacriticalbattlegroundinthe?ghtagainstclimatechange.ThisreportbytheWorldEconomicForum,KearneyandObserverResearchFoundationrepresentsapioneeringandcomprehensiveefforttoguideIndianbusinesses,policy-makersandstakeholdersintheambitiousjourneytoreduceScope3emissions–acategoryofemissionsthathasofteneludedconcertedaction.todrivecommitmentandensurelong-termcompliance.3.

Developanupstream/downstreamcarbonreductionstrategy:Businessesmustidentifystrategic,high-priorityareasforemissionsreductionwithinthesupplychain.Thisentailscollaborationwithsupplychainpartnerstoalignefforts,promotesustainablepracticesandminimizeemissionscollectively.4.

De?neorganizationalenablers:To

ensuresuccessfulimplementation,businessesmustidentifyandputinplacethenecessaryenablers–

governance,technology,communication,talentmanagement,andpoliciesandprocesses.Theplaybookisanchoredinthebeliefthat,inarapidlydevelopingcountrylikeIndia,businesseshavethepowertobethearchitectsofbotheconomic

growthand

environmental

transformation.IndiancompaniesfacearangeofchallengesintheirScope3decarbonizationagenda,includingthepreponderanceofsmallandmedium-sizedsupplierswholackawarenessofthetopic;thelackofproperdatamanagementsystems;andtherelativelynascentmaturityoftheScope3conceptinthecountry.5.

Buildaroadmapandabusinesscase:Havingtakentheprecedingsteps,businessesmustconstructaclearandactionableroadmapthatoutlinesthesteps,milestonesandtimelinesforachievingtheirScope3emissionsreductiontargets.Alongwiththeroadmap,theymustcraftacompellingbusinesscasethathighlightsthe?nancial,environmentalandreputationalbene?tsofpursuingScope3emissionsreduction.TheframeworklaidoutinthisreportisdesignedtoempowerIndiancompaniestounderstand,quantifyandreducetheirScope3emissionsinastructuredandstrategicmanner.

Thisplaybookisbasedontheprinciplesofsustainability,environmentalresponsibilityandethicalprocurementpractices,andistailoredtoIndia’s

uniquecontext.Thejourneytodecarbonizesupplychainsisnotasolitaryone.Itrequiresthecollaborationofbusinesses,governments,non-governmentalorganizationsandthebroadercommunity.Inparticular,thegovernmentcanplayapivotalroleindrivingScope3emissionsreductionbylayingoutaclearpolicyandregulatoryframework,drivingpublicawareness,offering?nancialincentives/supporttoemissionsreductionprojects,drivingpublicprocurementleadership,supportingresearchanddevelopment(R&D),enablingcollaborationandpartnerships,supportingcapacitybuildingandknowledgetransfer,

ensuringlong-termpolicycertaintyandensuringglobalcommitmentandsupporttotheScope3agenda.Theframeworkincludesthefollowing?vesteps:1.

CreateaScope3baselineanddevelopadatastrategy:Asolid,comprehensivebaselineformsthefoundationfortheScope3journey.Businessesmustunderstandthesourcesandcategoriesofemissionsacrossthevaluechain.Simultaneously,theymustdeveloparobustdatastrategythatoutlineshowdataonScope3emissionswillbecollected,measuredandreported.Accuratedataisthebedrockofinformeddecision-making.TheScope3emissionsreductionjourneyholdsthepromiseofnotonlyreducingcarbonemissionsbutalsousheringinafuturewherebusinessprosperityandenvironmentalstewardshiparemutuallyreinforcing.Together,

Indianbusinessescandecarbonizesupplychainsandhelpbuildasustainable,resilientandthrivingfutureforIndiaandtheworld.2.

Setscience-basedandbusinesstargets:Businessesmustestablishclearandambitiousemissionsreductiontargetsandalignthemwithglobalclimategoalsandtheirownsustainabilitygoals.Abalancebetweenscience-basedgoalsDecarbonizingSupplyChains:AScope3PlaybookforIndia4IntroductionMission2070:TheIndianet-zero

roadmapIndiaisinaphaseofrapidplanneddevelopment.Asthecountrygrowsricher,

itsenergyandimpactsofthechangingclimate.Supportedbytherighteconomicframework,theseactionscanputIndia–andtheworld–onapathtorealizingstrong,equitableandsharedgrowth.materialconsumptiongrowaswell.Onitscurrenttrajectory,thisgrowthcouldimplyasigni?cantexpansionofIndia’s

greenhousegases(GHG)footprint–somethingthatneitherIndianortheworldcanafford.However,

thisisnotagiven.UnlikemostdevelopednationswhosegrowthoverthepastmanydecadeshasbeenbuiltonhighGHG-footprintinfrastructure,Indiahasauniqueopportunitytoleapfrogthisjourneythroughlow/noInlinewiththisobjective,thegovernmentofIndiasetatargettoachievenetzeroemissionsby2070attheUnitedNations’climatechangeconference,the26thConferenceofParties(COP26)inGlasgowin2021.To

alignthenation’seffortswiththedeclaredgoal,thegovernmentupdateditsNationallyDeterminedContribution(NDC),whichithadinitiallysubmittedtotheUnitedNationsFrameworkConventiononClimateChange(UNFCCC),tore?ectfourcarbonandenergymilestonesthatitaimstoachieveby2030ontheroadtonetzeroemissionsby2070.Together,

these?vegoalsarereferredtoas“Panchamrit”,or“?veemissionstechnologies.

India’s

LED(lightemitting1diode)programmethatreplacedincandescentbulbswithmoreenergy-ef?cientLEDbulbsforalargepopulationisagoodexampleofthecountryleapingaheadwithcleanertechnology.Indiatodayhasanopportunitytotakeboldactiontoenableeconomicprosperityandaverttheworstnectarelements”.2FIGURE1

Panchamrit:India’s

netzeroby2070targetandfourkeymilestonesfor2030Netzero

emissionsby2070Meet50%energyrequirementswithrenewableenergyReach500gigawattnon-fossilReduce1,000,000,000tonnes

ofprojectedcarbondioxideemissionscumulativelyReducethecarbonintensityoftheeconomyby45%

over2005levelenergycapacitySource:PressinformationBureau.DecarbonizingSupplyChains:AScope3PlaybookforIndia5Thegovernment’s

commitmentsare

alreadyre?ected

inthetargetsofIndianpublicsectorundertakings(PSUs)andstate-controlledorganizations.Forinstance,theIndianInIndia’s

privatesector,

whilemanycorporateleaderssuchasAdaniTransmission,

HDFCBank,JSWEnergy,MahindraGroup,

Reliance,TCSandWipro

havealready

setandpublishednetzero

targets,theScope3

elementoftheseRailways,whichcontributes4%ofIndia’s

totaltransportationemissions,3haspledgedtoachieveSimilarly,othertargetsisnotalwaysconsistentlyframed.

While6netzero

emissionsby2030.4theIndiangovernment

hasnotyetmandatedanysectororgroup

ofcompaniestosetspeci?cemissionsreduction

targets,more

andmoreIndiancompaniesare

expectedtoannouncenetzero

targetsthankstogrowing

pressure

from

bothinvestorsandglobalbuyers.PSUssuchasBharatPetroleum,

CoalIndia,GasAuthorityofIndia,HindustanPetroleum,IndianOil,OilandNaturalGasCorporationandRashtriya

IspatNigamhave

declared

theirownnetzero

targets.5FIGURE2

NetzerotargettimelineforselectIndiancompanies2020202620302032203520382040204620472050Source:Public?lings.Scope3

emissionsreduction:

TheIndiancontextScope3

emissionsrefertoemissionscausedduringtheindirect

upstreamanddownstreamoperationsininformationcollectingandsharingexerciseswithsuppliersanddistributorswhosedirectemissionscontributetoa

company’sScope3

emissions.a

company’svaluechain.

Theseareoftenthelargest7partofanorganization’scarbonfootprintandtendtobethehardesttoaccountforandmanage,astheyfalloutsideoftheorganization’s

direct

control.AccountingforScope3

emissionsrequiresdetailedAsScope3

emissionsincludethedirectemissionsofallsupplychainpartners,theyconstitutea

signi?cantshareoftotalemissionsacrossindustries.DecarbonizingSupplyChains:AScope3PlaybookforIndia6FIGURE3

Percentagebreakupofindustry-levelemissions100%90%80%70%60%50%40%30%20%10%0%ManufacturingMaterialsPowergenerationServicesScope1and2Scope3Source:CDP.Theproportionate

contributionofScope3emissionstototalemissionsmakesa

compellingcasefortheuseofScope3

emissionsreductionasa

signi?cantlevertoreach

companies’netzero

targets.However,

carbondisclosure

datasuggeststhatIndiancompaniesdonotyetactivelyreport

Scope3

emissions.OfalltheIndiancompaniesreporting

emissionsdatatotheCarbonDisclosure

Project

(CDP),only31%reportScope3

emissions.FIGURE4

PercentageofIndiancompaniesthatincludeScope3inemissionsreports69Scope3included72Total

companies31Scope3excludedSource:CDP.DecarbonizingSupplyChains:AScope3PlaybookforIndia7Within

thisset,only22%ofcompaniesthatreportemissionsdatahavesetscope3

targetscompliantwiththeScienceBasedTargets

initiative(SBTi).

Thislackofmeasuring,reporting

andtargetingofScope3emissionsleadstoalternative

interpretations

ofnet-zerotargeting.Thisissigni?cantparticularlybecausemostoftheIndianenergyPSUsthathavesetnet-zero

targetshaveonlyaccountedforScope1

and2

emissions.FIGURE5

PercentageofIndiancompaniesthathaveScope3inSBTitargets78Scope3included2272Total

companiesScope3excludedSource:CDP.MostIndiancompaniesintheapparel,

foodandbeverages,agriculture

andfossilfuel-basedenergysectorseitherdonotreport

or33%ofthecompaniesreporting

Scope3,thehighestacross

sectors.Thisisfollowedbytheservicesandmaterialssectorswhere

31%and27%ofcompaniesreport

Scope3

emissions,respectively.report

partiallyontheirScope3

emissions.8Theinfrastructure

andpowergenerationsectorshaveFIGURE6

Percentage

breakupofIndiancompaniesreportingScope3

emissions,groupedbyindustry100%90%80%70%60%50%40%30%20%10%0%16%25%27%31%33%33%100%100%100%84%75%73%69%67%67%ApparelBiotechnology,healthcareandpharmaceuticalsFood,beveragesandagricultureFossilfuelsInfrastructureManufacturingMaterialsPowergenerationServicesNotreportingReportingSource:CDP.DecarbonizingSupplyChains:AScope3PlaybookforIndia8Companiesarealreadyundergrowinginvestorpressuretodemonstratethattheyaretakingemissions,whichmayfalloutsidetheirdirectcontrolbutremainwithintheirsphereofresponsibility.Inthiscontext,itisacriticalimperativeforcompaniesacrossindustriestoframeaproactiveapproachtoScope3emissionsreduction.responsibilityfortheirfullclimateimpact,

and9evencountriesarefacingincreasinginternationalpressuretobetransparentaboutScope3The15categoriesofScope3:Therole

ofprocurement

inemissionsreductionTheGreenhouseGasProtocol(GHGProtocol)breaksdownScope3emissionsinto15majorcategories.Categories1to8dealwithupstreamemissionswhilecategories9to15dealwiththedownstreamemissionsinacompany’s

valuechain.Eachcategoryisclearlyde?nedandpreciseguidelinesareprovidedonhowtoassigncategoriestoactivitiesandmeasuretherelatedemissions.10FIGURE7

CategoriesincludedunderScope3emissionsCategory1Category5PurchasedgoodsandservicesWastegeneratedinoperationsCategory2Category6CapitalgoodsBusinesstravelCategory3Category7Fuel-andenergy-relatedactivitiesEmployeecommutingCategory4Category8Upstream

transportation

and

distributionUpstreamleasedassetsCategory9Category13Downstream

transportation

and

distributionPurchasedgoodsandservicesCategory10Category14ProcessingofsoldproductsFranchisesCategory11Category15UseofsoldproductsInvestmentsCategory12End-of-life

treatment

of

sold

productsSource:GHGProtocol.DecarbonizingSupplyChains:AScope3PlaybookforIndia9Theprocurementandsourcingfunctionsofacompanyareprimarilyinvolvedincategories1-4:withupstreamemissionsofpurchasedfuelsandelectricity,emissionsrelatingtotransmissionanddistributionlossesandemissionsinvolvingthegenerationofelectricitypurchasedbythereportingcompanyforresale.1.

Purchasedgoodsandservices:Thiscategorycoversemissionsresultingfromtheextraction,productionandtransportationofthegoodsandservicesthatthereportingcompanyacquires,whicharenototherwiseincludedincategories2-8.4.

Upstreamtransportationanddistribution:Thiscategorycoversemissionsresultingfromthetransportationofgoodsandservicesbetweenthereportingcompany’sdirect(tier1)suppliersanditsownpremisesinvehiclesandfacilitiesnotownedorcontrolledbythereportingcompany.2.

Capitalgoods:Thiscategorycoversemissionsresultingfromtheextraction,productionandtransportationofanycapitalgoodspurchasedbythereportingcompany.Thiscategorydoesnotallowforamortizationofemissionstiedtoacapitalasset;allemissionsunderthiscategorymustbedisclosedandaccountedforintheyearoftheacquisition.Dataindicatesthatupstreamemissionsfrommanufacturingtypicallyarisefromcategories1-4asextraction,transportationandrawmaterialconversioncontributesigni?cantlytoacompany’sScope3emissions.11

Undermostcontemporaryorganizationstructures,theseactivitiesfallundertheumbrellaofacompany’s

procurementdepartment.Thus,itisimportanttorecognizetheroleoftheprocurementfunctionofacompanyintheoverallgoalofemissionsreduction.3.

Fuelandenergy-relatedactivities:Thiscategorycoversemissionsresultingfromextraction,productionandtransportationoffuelandenergypurchasedbythecompanythatisnotalreadyaccountedforunderitsScope1andScope2reporting.ThiscategoryprimarilydealsDecarbonizingSupplyChains:AScope3PlaybookforIndia

10Decarbonizingsupplychains:ChallengestoScope3

emissionsreduction

inIndia1Imagecredit:manx_in_the_world,@GettyImagesDecarbonizingSupplyChains:AScope3PlaybookforIndia

11India’s

accelerateddevelopmenttrajectoryimpactsthecarbonemissionsinallsectorsofitseconomy.Forexample,thegovernment’sfocusedthrustoninfrastructure

developmentasa

tooltoreduce

spatialinequalitiesandpoverty12

willrequire

strikinga

balancebetweenthenation’s

overarching

developmentgoalsanditsequallycriticalemissionsreduction

targets.13Similarly,ananalysisofemissionsfrom

globalenergyuseintheindustrialsector,

aswellasemissionsfrom

theglobalagriculture

sector,highlightsthecareful

balancingactrequired

asIndiapursuesgrowth

inthesevibrantandthrivingenginesofitseconomy.14FIGURE8

Percentagebreakupofemissionsfromglobalenergyuseinindustry,

andfromglobalagricultureandlandusePercentagebreakupofemissionsfromglobalenergyuseinindustry3012CementChemicalsandpetrochemicals15IronandsteelOthers43Percentagebreakupofemissionsfromglobalagricultureandlanduse397RicecultivationAgriculturalsoils22Others32LivestockandmanureSource:OurWorldinData.ReducingScope3emissionsinIndia,whileessentialformitigatingclimatechange,facesamyriadofchallenges.Thesechallengesarerootedinthecountry’sdiverseeconomy,infrastructureandsocialdynamics.Someofthekeychallengesinclude:complicatestheprocessofcalculatingandreducingScope3emissions.Dataavailabilityandaccuracy:Accurateandcomprehensivedataonemissionssourcesandactivities

within

supply

chains

is

essential

for

effectiveemissionsreduction.However,dataavailabilityandaccuracycanbeasigni?cantchallengeinIndia,asmanySMEsmaynothavethecapacityorresourcestocollectandreportemissionsdata.15

Thisdatagaphinderstheestablishmentofanemissionsbaselineandthedevelopmentoftargetedreductionstrategies.Sincescope-wiseemissionsdatareportingisanewconceptformostIndian?rms,theydonothavesystemsinplacetoComplexandfragmentedsupplychains:India’ssupplychainsareintricateandoftenfragmented,makingitchallengingtotrackemissionsacrosstheentirevaluechain.Thesesupplychainsspanvariousindustries,fromagriculturetomanufacturingtoservices,andfrequentlyinvolveamultitudeofsmallandmedium-sizedenterprises(SMEs).Eachlinkinthesupplychainmayhavedifferentemissionssourcesanddatacollectioncapabilities,whichDecarbonizingSupplyChains:AScope3PlaybookforIndia

12accuratelyidentifyandcollectthedatathatwouldenableeffectivemeasurementandestimationoftheirGHGemissions.Thepervasivelackofdatacreatesahurdleforcompaniesthatarestartingtoreportemissions.WhileacompanymightbeabletogetdataforScope1and2emissionsthroughanin-housedatacollectionexercise,collectingScope3datawillrequireacollaborativeeffortacrossitsentirevaluechain.Policyandregulatorygaps:Thelackofcomprehensiveandstringentregulationsspeci?callyaddressingScope3emissionsreductioncanhinderprogress.WhileIndiahasmadesigni?cantstridesinrenewableenergyadoptionandemissionsreporting,moretargetedpoliciesforScope3emissionsandsupplychainsustainabilityareneededtodrivechangeeffectively.17Lackofincentives:Whilegovernmentpoliciesandregulationscanprovideincentivesforemissionsreduction,theymaynotberobustoruniformacrossindustries.TheabsenceofaclearandconsistentregulatoryframeworkforScope3emissionsreductioncandiscouragebusinessesfromactivelyengaginginsustainabilityinitiatives.18Thepaucityof?nancialincentivesandrewardsforbusinessesthatinvestinemissionsreductionprojectsisafurtherdampener.TheScope3emissionsofa?rmtranslatefromtheScope1and2emissionsofitspartners.Thesepartners,intheIndiancontext,oftendonotmeasureemissionsatall,andattimesprovidedatathatmayprovemisleading.Intheabsenceofaccuratebaselinedata,companiesoften?ndthemselvesresortingtoindustryaveragedatathatmightbequiteinaccuratefortheirspeci?ccontextandmightleadtomisplacedefforts.To

overcomethechallengeofdataavailabilityandquality,?rmswouldneedtoengagetheirsupplychainpartnersinphaseddatasharingandcapacitybuildingprogrammes.Suchtasksrequirebuildingtrustwithinthesupplychainanddemonstratingmutualvalueadditionfromtheemissionsdisclosureefforts.Technologicaland?nancialconstraints:ManyIndianbusinesses,particularlySMEs,facetechnologicaland?nancialconstraintsinimplementingemissionsreductionstrategies.Transitioningtolow-carbontechnologiesandadoptingsustainablepracticesoftenrequiressubstantialinvestments.19

Limitedaccesstocapital,especiallyforsmallerbusinesses,canbea

deterrent.Non-uniformreportingstandards:India’s

leadingcorporatesarecurrentlysettingnetzerotargetsonavoluntarybasis.Asaresult,thereisnosetstandardforreportingprogresstowardsthesetargets.Theexistenceofseveralde?nitionsandemissionsaccountingproceduresmakesinter-?rmcomparisonsafutileexercise.Oneprimaryexampleofmultiplede?nitionsleadingtomisinterpretationofdatacanbeobservedincompanies’netzerodeclarations.Whilesomeprivatesectorcompanieshavede?nednetzeroacrossallthreescopes,severalothercompanieshavelimitedtheirde?nitiontocompanyactivitiesacrossonlyScope1and2.Suchadiscrepancyinde?nitionnotonlyharmscomparisonamongcompaniesbutalsocreatesopportunitiestoengageinactivitiesthatarti?ciallyleadtotheachievementofnetzeroemissions.Economicprioritiesandaffordability:

Ina

countrylikeIndiawheremillionsstilllackaccesstobasicservicesandeconomicgrowthisa

toppriority,theaffordabilityofemissionsreduction

measurescanbea

concern.

Balancingtheneedforeconomicdevelopmentandpovertyalleviationwiththeimperative

to

reduce

Scope

3

emissions

is

a

complexchallengethatpolicy-makersmustaddress.20Behaviouralandculturalfactors:Culturalandbehaviouralfactorscanin?uenceemissionsreductioninitiatives.Businessesandconsumersmaylackawarenessandunderstandingaboutthesigni?canceofScope3emissions.Acultureofwaste,highconsumptionandafocusonshort-termeconomicgainscanbebarrierstoadoptingsustainablepractices.Foranextremeexampleofthis,considerthehypotheticalexampleofacompanythatde?nesnetzeroinScope1and2,andisstrugglingwithScope1emissionsfromtheir?eet.Inthiscontext,withoutaScope3focus,theycouldtheoreticallyoutsourcematerialtransporttotheirsuppliersandacceleratetheirjourneytoScope1emissionsreduction.ThiswouldturntheirScope1emissionsintoScope3,butnotreallycontributetotheenvironmentinanymaterialway.Challengesinagricultureandlanduse:Agricultureisasigni?cantsourceofScope3emissionsinIndia.Challengesindecarbonizingthissectorincludeinef?cientfarmingpractices,deforestationandland-usechanges,whichcontributetoemissions.21

EspeciallyinIndiawherethemajorityoftheagriculturesectorisnotfullyformalized,verylittleemissionsdataiscollectedormonitoredatthefarmlevel.Agri-basedcompaniesinIndiaoftenlacktraceabilitytothefarmlevelsupplysource,limitingtheirabilitytomeasureandreduceagriculture-speci?cemissions.Address