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Working from Home: The New Path to Achieving “Net Zero” Emissions, Focusing on Scope 1, 2, and 3

by | Mar 9, 2024 | ESG

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In recent years, the concept of achieving net zero emissions has gained significant traction as the world grapples with the urgent need to mitigate climate change. While many solutions have been proposed to address carbon emissions, the emergence of remote work as a result of the COVID-19 pandemic has opened up new possibilities. In addition to this, a 2016 study conducted by Cone Communications Employee Engagement found that 76% of millennials would choose to work for a socially responsible company, even at lower pay, and 88% feel their job is more fulfilling when they are provided opportunities to make a positive impact on social or environmental issues (Reuters Events, 2020). This article explores how working from home has the potential to become a key driver in reducing greenhouse gas emissions as changes in mobility, production and consumption patterns temporarily reduced global CO2 emissions by 17% in April 2020 compared to peak 2019 levels (Harvard Business Review, 2022), with a particular focus on Scope 1, 2, and 3 emissions.

Scope 1 Emissions:
Scope 1 emissions refer to direct greenhouse gas emissions occurring from sources owned or controlled by an organisation. In a traditional office setting, these emissions include the burning of natural gas for heating, company-owned vehicle usage and on-site fuel combustion. However, with the transition to remote work, scope 1 emissions can be significantly reduced. Employees working from home eliminate the need for daily commutes, thereby reducing emissions from transportation. Furthermore, office buildings often require extensive energy consumption for heating, cooling and lighting, which can be substantially curtailed when employees work from home. Thus, remote work can contribute to a substantial reduction in scope 1 emissions.

Scope 2 Emissions:
Scope 2 emissions encompass indirect emissions resulting from the consumption of purchased electricity, heating or cooling. In a traditional office setting, these emissions are generated through the energy consumption of the building, largely sourced from the power grid. However, with the shift to working from home, the responsibility for scope 2 emissions transfers from the employer to the employees. This transition provides an opportunity for individuals to make conscious choices regarding their energy providers. By selecting renewable energy sources or advocating for renewable energy programmes, employees can further contribute to reducing scope 2 emissions and accelerating the transition to a low-carbon future.

Scope 3 Emissions:
Scope 3 emissions represent indirect emissions that occur in an organisation’s value chain, including activities related to business travel, employee commuting and supply chain. Working from home offers immense potential for reducing scope 3 emissions. The elimination of daily commutes not only reduces employees’ carbon footprint but also decreases traffic congestion and associated emissions. Additionally, reduced business travel, enabled by virtual meetings and conferences, further mitigates scope 3 emissions. Moreover, working remotely can prompt organisations to reconsider their supply chain and transportation logistics, leading to more localised and sustainable sourcing practices, which can contribute to overall emission reduction efforts. Siemens AG, a German industrial giant, has taken steps towards reducing its scope 3 or indirect emissions by 15% by 2030 compared with 2019. It envisages this by including remote work as a goal (Reuters, 2022).

Enablers and Challenges:
While the potential benefits of working from home for achieving net-zero emissions are evident, several factors need to be considered. Infrastructure development is crucial, ensuring reliable and efficient internet connectivity and robust cybersecurity measures to protect remote workers. Employers should provide necessary technical support to employees and facilitate the transition to remote work by promoting sustainable practices such as energy-efficient home setups and reduced paper consumption. Policy support from governments is also vital to incentivise sustainable remote work practices, such as tax incentives for energy-efficient home offices or regulations requiring organisations to report and reduce scope 3 emissions.

Working from home has emerged as a powerful tool in the fight against climate change, offering a pathway to achieve net zero emissions with a focus on scope 1, 2, and 3 emissions. By eliminating daily commutes, reducing energy consumption and re-evaluating supply chains, remote work has the potential to make a substantial impact on greenhouse gas emissions. However, realising this potential requires collaborative efforts from individuals, organisations and policymakers. Embracing remote work as a sustainable practice can drive us closer to a net-zero future while simultaneously reaping the benefits of increased work productivity (Forbes, 2023).

Bibliography

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2. Harvard Business Review, 2022. Organisational Culture. [Online]
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[Accessed 18 May 2023].

3. Image Source- McKinsey, 2021. Sustainability. [Online]
Available at: https://www.mckinsey.com/capabilities/sustainability/our-insights/solving-the-net-zero-equation-nine-requirements-for-a-more-orderly-transition
[Accessed 18 May 2023].

4. Reuters Events, 2020. Sustainable Business. [Online]
Available at: https://www.reutersevents.com/sustainability/rise-home-working-we-need-scope-4-ghg-emissions
[Accessed 18 May 2023].

5. Reuters, 2022. Business News. [Online]
Available at: https://www.reuters.com/article/companies-climate-survey-factbox-idCAKCN2MR0QS
[Accessed 18 May 2023].