Navigating Scope 3 emissions: How DHL's GoGreen solutions support Bangladeshi businesses

According to the International Energy Agency, Bangladesh accounted for 0.3% of global CO2 emissions from combustible fuels, a figure that has seen a 420% increase since 2000¹. While these direct emissions are substantial, the broader picture of a company's environmental impact includes Scope 3 emissions, which, according to the UN Global Compact, can represent 70% of their total carbon footprint². 

However, a 2020 Bloomberg analysis of 15,000 companies revealed that only about 20% were disclosing these indirect emissions³. For businesses in Bangladesh engaging in international shipping and aiming for sustainable practices, a comprehensive understanding of their entire carbon footprint, encompassing these often-overlooked Scope 3 emissions, is becoming increasingly vital. 

In this article, we’ll explore the evolving legal considerations surrounding Scope 3 emissions. We’ll also illustrate how DHL's GoGreen solutions can equip businesses in Bangladesh to effectively measure and implement strategies for Scope 3 emissions reduction, paving the way for more sustainable operations and global trade.

What are Scope 3 emissions?

When we talk about a business's impact on the planet, simply looking at the smoke coming from their own chimneys (Scope 1) or the electricity powering their offices (Scope 2) only tells part of the story. The real game-changer often lies in Scope 3 emissions—the indirect emissions that ripple across a company's entire value chain. Additionally, it’s the carbon footprint of everything related to the business, but not directly owned or controlled by them.

For Bangladeshi businesses involved in everything from manufacturing goods to delivering packages and goods via courier and other shipping methods, it’s important to understand these Scope 3 categories:

• Purchased goods and services: This includes the carbon cost of raw materials and even the packaging your products arrive in.
• Transportation and distribution (upstream and downstream): From the journey of components to your door, to the delivery of your services to customers around the globe—it all counts.
• Use of sold products: For some businesses, the emissions generated when customers use their products are a significant factor.
• Waste generated in operations: Even the waste your business produces has an environmental footprint.
• Employee commuting and business travel: The daily journeys of your team and their business trips contribute too.

Unfortunately, measuring and reporting these Scope 3 emissions presents issues due to the lack of direct control over these activities and the complexity of data collection across extensive value chains. However, international stakeholders, including investors and customers, and regulatory bodies are increasingly exerting pressure on businesses to account for and address their full carbon footprint. As such, it’s critical for your business not only to know which parts of your operations are covered by Scope 3 emissions, but also to prioritize managing them. 

The evolving legal landscape: National and international regulations

The push for greater environmental responsibility is shaping the legal landscape, with increasing scrutiny on Scope 3 emissions reporting. While specific regulations in Bangladesh are still evolving, actions around the globe, spurred by the Paris Agreement's goals and the widespread adoption of the GHG Protocol for emissions accounting, are shaping expectations for businesses.

Paris Agreement 

The Paris Agreement's overarching goal to limit global warming has a cascading effect on national policies and corporate sustainability targets worldwide. Bangladesh, as a signatory, has committed to reducing its emissions through its Nationally Determined Contributions (NDCs)⁴. These NDCs influence national policies on emissions reduction, pushing businesses to adopt more sustainable practices. 

For Bangladeshi industries heavily reliant on international trade, particularly those shipping to regions with stringent emissions regulations, compliance with the Paris Agreement is becoming a necessity for market access.

Greenhouse Gas (GHG) Protocol 

The GHG Protocol provides a standard basis for measuring and reporting greenhouse gas emissions, including Scope 3⁵. This framework is also crucial for businesses seeking to understand their full carbon footprint. 

Bangladesh, for instance, is increasingly aligning its reporting standards with the GHG Protocol to ensure consistency and transparency in emissions accounting. Both the Bangladeshi government and the private sector are taking initiatives to adopt these standardized GHG accounting methods, facilitating accurate reporting and enabling effective emissions reduction strategies.

Notably, the Bangladeshi government, through the Department of Environment (DoE), runs a national Greenhouse Gas (GHG) inventory process, particularly a Monitoring, Reporting, and Verification (MRV) system, to meet the reporting requirements under the Paris Agreement's Enhanced Transparency Framework (ETF).

The importance of Scope 3 emissions reduction for Bangladeshi businesses

Reducing Scope 3 emissions offers significant advantages for businesses in Bangladesh, extending beyond simply fulfilling environmental responsibility:

• Enhanced brand image and customer loyalty: By illustrating their dedication to reducing their carbon footprint, businesses can resonate with environmentally aware consumers, building trust and loyalty.
• Improved access to sustainable financing and investment: Demonstrating strong ESG performance, including Scope 3 emissions management, makes businesses more attractive to investors and lenders focused on sustainability.
• Reduced supply chain risks and increased resilience: Addressing emissions within the supply chain can identify inefficiencies and vulnerabilities, leading to a more robust and resilient operation.
• Compliance with evolving regulatory requirements: Emissions reduction strategies help businesses stay ahead of emerging environmental regulations, avoiding potential penalties and ensuring continued market access.
• Contribution to national and global sustainability goals: Reducing emissions directly supports Bangladesh's commitment to the Paris Agreement and contributes to the global effort to combat climate change.

DHL's GoGreen solutions for Scope 3 emissions reduction

DHL Express is committed to sustainable logistics and understands the critical role it plays in helping businesses reduce their Scope 3 emissions. The DHL GoGreen program, for instance, offers a suite of solutions designed to assist businesses in measuring, reporting, and actively reducing their environmental impact across their supply chains:

• Sustainable fuel options: DHL Express uses sustainable aviation fuels (SAF), which are biofuels made from renewable sources like used cooking oil and other waste biomass, significantly reducing emissions associated with international shipping.
• Optimized routing: DHL Express also employs advanced route optimization technologies to minimize transportation distances and fuel consumption, thereby lowering emissions.
• Carbon insetting: DHL Express helps businesses practice carbon insetting, reducing Scope 3 emissions directly from within their own supply chain.

Practical steps for Bangladeshi businesses to reduce Scope 3 emissions

Reducing Scope 3 emissions requires a proactive and collaborative approach between Bangladeshi businesses and their suppliers and partners. At the same time, they can implement several practical strategies within their supply chains to drive meaningful reductions.

Data collection and transparency

Accurate data collection is the foundation of any effective emissions reduction strategy. So, businesses need to establish robust systems for gathering data on emissions from various sources within their value chain, from raw material extraction to product transportation. 

It’s also worth noting that transparency in reporting these Scope 3 emissions is equally vital. After all, publicly disclosing emissions data builds trust with stakeholders and showcases accountability.

Supply chain collaboration

Collaboration with suppliers is essential for tackling Scope 3 emissions, as a significant portion of these emissions often lies outside a company's direct control. By actively engaging with suppliers, businesses can identify opportunities to reduce emissions throughout the supply chain. 

This involves setting clear expectations for suppliers regarding emissions reduction targets, encouraging them to adopt more sustainable practices, and working together to implement solutions.

Partnering with DHL for sustainable logistics and reduced Scope 3 emissions

Addressing Scope 3 emissions is important for Bangladeshi businesses aiming for long-term success and global competitiveness. And when you want a reliable logistics partner through your sustainability journey, DHL Express is your best option. By leveraging DHL's GoGreen solutions, your business can effectively measure, report, and reduce its Scope 3 emissions, optimizing your operations for a greener future.

Take the next step towards sustainable logistics. Open a DHL Express business account today and explore DHL's GoGreen solutions for local and overseas shipping.