Scope 3 emissions are often the largest segment of companies’ GHG, with business activities leading to a change in land use or degradation of ecosystems within companies’ value chains. Companies can reduce scope 3 emissions by influencing business partners across their value chains as well as through their purchases or products they sell. It is estimated that about 40% of the global GHG emissions are driven, or influenced, by companies through their purchases and the products they sell (CDP, 2018). This indicator therefore seeks to hold companies accountable for their scope 3 emissions and aligns with the SBTi’s guidance on the topic (SBTi, 2021).
A note on the scoring system
Wikirate uses a standardized 10-point scoring system to enable comparison of company scores across different benchmarks. In the Nature Benchmark, companies can earn 1 point per indicator, which are then added together and calculated as a percentage of the total score for a measurement area (MA) to determine the final score for the MA. The overall Wikirate score is calculated by combining these scores with the appropriate weightings, and converting them to a 10-point scale. For instance, if a company achieves a final score of 50, the corresponding Rating will be 5.
score = (x) -> if x == "Yes" 10 else 0 weights = [0.2, 0.2, 0.2, 0.2, 0.2] scope_3_ghg_emissions = [disclosure, reductions_disclosure, targets, targets_reporting, alignment] weights.reduce((weighted_sum, weight, index) -> weighted_sum + weight*score(scope_3_ghg_emissions[index]) , 0)