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UNVEILING CONSTRAINTS IN IDENTIFYING ESG SCOPE 2 AND SCOPE 3 EMISSIONS, CHALLENGES, SOLUTIONS AND FUTURE PERSPECTIVES

May 13, 2025 18 0 ESG & Sustainability Global Capability Centers

UNVEILING CONSTRAINTS IN IDENTIFYING ESG SCOPE 2 AND SCOPE 3 EMISSIONS, CHALLENGES, SOLUTIONS AND FUTURE PERSPECTIVES

This thought through and constructively built paper explores the multifaceted challenges associated with calculating ESG Scope 3 emissions, addressing the technology industries along with examples in the apparel, financial and industries. These industries present unique challenges due to their diverse, globalized and complex supply chains, varying levels of data transparency, and the intricate nature of their global operations. In addition to identifying the limitations of existing approaches, this paper explores emerging opportunities to improve the accuracy and reliability of ESG Scope 3 emission calculations. These opportunities include technological advancements, enhanced data collection practices, and industry-wide collaborations. Furthermore, the paper most importantly examines the evolving regulatory landscape and its implications for future corporate reporting on ESG Scope 3 emissions. By offering insights into both the challenges and potential solutions, this research aims to contribute to the broader discourse on corporate sustainability, Further on the paper provides solutioning on how technology plays important role when come to how the Corporates, Financials institutions, regulator and individuals can contribute towards the Carbon emission tracking. The latter part of the research paper flags out on how Société Générale as a bank is thriving it space and its ambitions, its ESG Scope 3 disclosures and how it encourages its clients to declare their ESG scope 3, Net zero banking alliance goals and its role in curtaining the overall climate change situation. The next Part of the research paper address the pressing statements on the Startups and eco system as how they can create value to the ESG Scope 3 emission tracking activities. The overall startup's environment is primarily under 2 obstacles namely finance and regulation. Towards the end the paper evaluates on scope 4 (avoided emissions), which is still a concept by principle yet to be structured and evaluated by the global regulators and evangelists.


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