5 Proven Strategies to Measure Scope 3 Emissions in Oil and Gas

As the global push toward sustainability intensifies, the Oil and Gas industry faces mounting pressure to account for and reduce its greenhouse gas (GHG) emissions. While Scope 1 and Scope 2 emissions (those from direct operations and purchased energy) are often the first focus, Scope 3 emissions pose a far more complex challenge. These indirect emissions occur throughout the value chain, from raw material extraction to the end use of sold products, making them a critical yet daunting area to tackle.

To help Sustainability Managers in the Oil and Gas sector address this challenge, here are five proven strategies to measure Scope 3 emissions effectively.

1. Prioritise Key Categories for Maximum Impact

The Greenhouse Gas (GHG) Protocol outlines 15 categories of Scope 3 emissions, but not all will be equally relevant to your business. Focus on the categories that represent the largest share of emissions in the oil and gas sector:

• Upstream categories: Include purchased goods and services, capital goods, and upstream transportation and distribution.
• Downstream categories: Primarily the use of sold products, which is often the largest contributor.

By concentrating on the most material categories, you can direct resources where they will have the greatest impact, simplifying the measurement process and enhancing the accuracy of your results.

2. Leverage Industry-Specific Data and Tools

Accurate measurement of Scope 3 emissions relies on robust data collection and analysis. To streamline the process, consider these resources:

• Emission factors databases: Tools like the IEA’s emissions statistics or EPA’s Emission Factors Hub can help estimate emissions for standard activities.
• Lifecycle assessment (LCA) tools: Model the environmental impact of your products throughout their lifecycle, from extraction to end use.
• Industry collaborations: Initiatives like the Oil and Gas Climate Initiative (OGCI) and IPIECA offer valuable benchmarking data and methodologies.

Advanced sustainability platforms (hello Rio...) tailored for the Oil and Gas sector can also simplify data collection, analysis, and reporting.

3. Engage Your Value Chain

Scope 3 emissions stem from activities beyond your direct control, making value chain collaboration essential. Here’s how to engage key stakeholders:

• Suppliers: Work with suppliers to gather emissions data and encourage them to adopt sustainable practices, such as energy-efficient operations or renewable energy sources.
• Customers: Collaborate with downstream partners to promote lower-carbon alternatives and technologies, such as renewable energy adoption or Carbon Capture and Storage (CCS).
• Joint initiatives: Participate in cross-industry collaborations to align on shared goals and best practices.

Building strong relationships throughout your value chain ensures access to better data and fosters collective action toward emissions reduction.

4. Implement Standardised Methodologies

Consistency in measurement and reporting is key to credibility and comparability. Adopt recognised frameworks such as:

• The Greenhouse Gas Protocol: A globally accepted standard for measuring and reporting GHG emissions.
• Science-Based Targets initiative (SBTi): Provides guidance on setting ambitious yet achievable Scope 3 reduction targets.
• ISO 14064: A standard for quantifying and reporting GHG emissions.

Standardised methodologies ensure that your data aligns with industry norms and can withstand external scrutiny from stakeholders, investors, and regulators.

5. Invest in Technology for Real-Time Insights

The complexity of Scope 3 emissions demands advanced tools to simplify measurement and analysis. Modern technologies can:

• Automate data collection: Digital platforms and IoT devices can capture emissions data from across your operations and supply chain.
• Enhance accuracy: Machine learning algorithms can identify patterns and improve the precision of emissions estimates.
• Provide real-time monitoring: Dashboards and analytics tools enable you to track emissions in real time, making it easier to spot trends and take corrective action.

By investing in technology, you not only improve the efficiency of your emissions measurement process but also gain actionable insights to inform sustainability strategies.

Measuring Scope 3 emissions in the oil and gas sector may seem daunting, but with a strategic approach, it becomes a manageable and meaningful process. By prioritising key categories, leveraging industry tools, engaging your value chain, adopting standardised methodologies, and investing in advanced technology, you can take significant steps toward comprehensive emissions management.

For Sustainability Managers looking to streamline this process, platforms like Rio can provide the tools and expertise needed to measure, manage, and report emissions effectively.

Start your Scope 3 journey today and drive meaningful progress toward a sustainable future.