The wicked problem

Davos, The UN, The WTO and likely all the FTSE 100 and Fortune 500 boards are all fighting the Net Zero war, as well as public sector organisations and many SMEs. 

The planet is burning so this is absolutely an issue that can’t be ignored. However, the path of least resistance is being overshadowed in blind pursuit of the end goal. 

Unfortunately, you don’t get to fast forward eight years and wake up on 1^st January 2030 carbon neutral. PWC, The Environment Agency, Carmarthenshire County Council, Jaguar Landrover, Warrington Schools have all made the 2030 pledge, but it’s a big ask. A really big ask. And the way to get there is, as propounded by all project managers and design thinkers, to break down the wicked problem into discrete and manageable packages, which when solved, come together to achieve the end goal.

However, the current corporate mindset is very much focused on Scope 3. And why shouldn’t it be? For instance, for an organisation we know very well, 91 per cent of their emissions are Scope 3. As a result, Scope 3 must be addressed.  Not least also because getting Scope 3 under control helps to win business and can materially impact the cost base. But, and it’s a big but, it must not be an organisation’s only focus to the detriment of Scope 1 and 2 activity, as these are what impacts the organisation, its own ESG results and the bottom line.

A reminder of the Scopes

Let’s recap on the three scopes. They are a way of categorising the different kinds of carbon emissions an organisation creates through its own operations and in its wider value chain. The Scopes were created back in 2001 appearing in the Green House Gas Protocol which sought to develop an internationally accepted greenhouse gas (GHG) accounting and reporting standard. Scopes are now the basis for mandatory GHG reporting in the UK. In the US since 2009, organisations emitting at least 25,000 metric tons or more of carbon dioxide are obliged to report their greenhouse gas emissions to the Environmental Protection Agency every year. Whilst in China, the largest emitter of GHG, there still isn’t a mandatory reporting procedure, but the country aims to make disclosure an obligation later this year having tested the procedure with commercial banks and listed companies in 2021. Consequently, UK corporates and public sector bodies are very influential in leading the way towards a net zero future.

Scope 1: Scope 1 emissions are those that come directly from the company for instance from the manufacturing process or running a fleet of trucks

Scope 2: These are indirect emissions from purchased fuel such as electricity and gas (if the organisation generates its own fuel then this falls under scope 1)

Scope 3: These are the emissions associated with an organisation’s supply chain – so the GHG’s emitted by its suppliers but also by its customers when they use the organisation’s product or service. Let’s say the organisation is retailer of electrical goods so this means all the GHG emitted by the manufacturer of the fridge, but also the GHG emission of the consumer once they have purchased the fridge and plugged it in. 

Practice what you preach

Committing to reach net zero will involve having to tackle the Scope 3 emissions; that much is clear. But the old adage: Practice what you Preach could not be more applicable here. By getting your own house in order, it becomes much easier to exert influence over third parties – your suppliers and customers - about managing their own emissions.

A call to arms

We are making a call to action to all UK corporates, public sector bodies and SMEs: Shift some of the focus from Scope 3 and start getting to grips with Scopes 1 and 2 where a pragmatic approach can lead to quick wins. We are firm believers that success breeds success and these quick wins, such as significantly reducing energy consumption, will galvanise the ESG effort resulting in Scope 1 and 2 victory. Once these are under your belt you have the power, skillset and authenticity to start looking at Scope 3. If you do it the other way round the proverbial cart is before the horse and to use another common saying you’ll be fighting an uphill battle.



Nick Robinson is an experienced Founder and Co-Founder who has been in the IT industry for 25 years. Nick enjoys helping his clients to embrace new technologies to meet desired business outcomes, and is skilled in Sales, Consulting, Professional Services, Management and Software as a Service (SaaS).