Amid global race to net-zero emissions, Environmental, Social, and Governmental (ESG) investors are now considering how Scope 4 emissions can be integrated into their portfolio analysis.
To combat climate change, going beyond the conventional methods of classifying diverse carbon emissions is an action must be taken.
Many are familiar with the Scope 1, 2, and 3 emissions. However, the positive impacts of new products and technologies have on climate, which is called the Scope 4 emissions, should also be considered.
Scope 4 emissions refers to saved or avoided emissions happening outside of a product's life cycle or value chain. In other words, this new category indicates emissions avoided for customers owing to product performance.
