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Navigating Scope 3 impact on manufacturing: A deep dive into carbon reporting

Navigating Scope 3 impact on manufacturing: A deep dive into carbon reporting

The global shift towards sustainable practices and environmental responsibility has led to increased scrutiny of businesses' carbon emissions. One critical aspect of this scrutiny is Scope 3 emissions, particularly in the manufacturing sector. This article delves into the insights shared during a Made in Group's monthly meetup, highlighting the importance of Scope 3 reporting and its potential impact on the manufacturing industry.

Understanding Scope 3 in Manufacturing

The conversation begins by defining the challenges of reporting Scope 3 emissions. It's acknowledged that Scope 1 and Scope 2 emissions are already mandatory for large organisations, typically those with a turnover exceeding 36 million and a staff count above 250. However, the focus shifts to Scope 3, which encompasses indirect emissions from the entire value chain, both upstream and downstream.

The Compliance Imperative

The discussion emphasises the need for compliance with carbon reporting, not just for larger organisations but also for smaller manufacturers or SMEs. Compliance becomes crucial not only to meet regulatory requirements but also to address the interests of significant clients who are increasingly concerned about the environmental impact of their supply chain.

Insights from Industry Players

Members share their experiences in addressing carbon reporting and its impact on their operations. For instance, the scrutiny of burners on ovens to improve efficiency, while another discusses the transition from gas to electric power. The adoption of solar panels and energy-saving initiatives, even for smaller manufacturers, emerges as a common theme.

Proactive Measures in the Manufacturing Sector

Joshua, representing Ecam, highlights the proactive steps taken to reduce carbon emissions. Initiatives include partnering with external entities to monitor gas usage, achieving significant carbon savings, and adopting solar panels. The discussion expands to explore the importance of electric vehicles, EV charging points, and innovative concepts like solar carports.

Scope 3 Challenges and Opportunities

As the conversation progresses, the focus shifts towards Scope 3 challenges and opportunities. The imminent need for organisations to measure and address their carbon footprint is stressed, especially as larger companies with net-zero strategies will increasingly demand sustainability efforts from their supply chains. The group discusses the importance of being proactive in identifying and mitigating carbon hotspots within the value chain.

Technology and Software Solutions

The conversation also touches upon the lack of readily available software solutions to support organisations in tracking and managing their Scope 3 emissions. The integration of technology, including the Internet of Things (IoT) and smart metering, is proposed as a starting point for organizations to gain visibility into their usage patterns and performances.

Academic Contributions and Digital Transformation

The article highlights the collaboration between industry and academia, with a Birmingham student working on digitising factory processes. This showcases a practical approach to digital transformation within manufacturing, enabling organizations to monitor job progress and reduce paper consumption.


In conclusion, the Made in Group's monthly meetup sheds light on the critical role of Scope 3 reporting in the manufacturing sector. The discussion underscores the importance of proactive measures, technological solutions, and collaborative efforts to navigate the challenges posed by increasing environmental regulations. As the manufacturing industry embraces sustainability, organizations must take a comprehensive approach to reduce their carbon footprint and contribute to a more environmentally conscious future.