Go beyond reporting: demonstrate solutions, not only problems
Today, sustainability reporting mainly focuses on reducing a company’s own emissions Scope 1, 2, and 3. However, if your business offers innovative solutions that help clients and the global market reduce carbon emissions, it is time to quantify this positive impact.
Scope 4 emissions provide the strategic tool needed to turn your green products and services from a perceived cost into a proven competitive advantage.
At ECONOS, we provide specialized Scope 4 consulting to develop a robust, transparent, and credible methodology that demonstrates the real value of your sustainable innovations.
Contact us today for an initial consultation and discover how we can turn your environmental advantage into measurable financial performance.
Scope 4 emissions are defined as greenhouse gas emissions avoided through the use of a more energy efficient or climate efficient product or service, compared to a conventional alternative, the baseline scenario.
Unlike Scope 1, 2, and 3 emissions, which represent the direct and indirect carbon footprint of your operations, Scope 4 is not part of the standard GHG Protocol inventory and must not be deducted from your total emissions. Instead, it represents an indicator of positive impact generated outside your value chain.According to the GHG Protocol, Scope 4 is a voluntary framework for estimating and reporting avoided emissions. There is no full standardization, and companies must be transparent about assumptions and methodologies used.
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Double counting: The same avoided emissions can be claimed by multiple companies, for example the LED manufacturer and the end user.
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Uncertain baseline: Selecting the reference scenario, what the customer would have used without your product, is critical and can be challenged.
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Credibility: Scope 4 reporting must be conservative and well documented to be accepted by investors and stakeholders.
- Scope 4 does not replace Scope 1 to 3 reduction obligations.
- It is a strategic indicator that can be included in ESG reports to highlight the positive contribution of products, but it must be disclosed separately from the official emissions inventory.
Quantifying avoided emissions is essential for companies offering green technologies, such as renewable energy, low carbon construction materials, energy efficiency solutions, or carbon capture products.
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Avoided emissions calculations are complex. They require a transparent methodology and a robust baseline scenario that can withstand third party scrutiny.
Our expert team provides support for:
Designing a calculation framework tailored to your product or service, aligned with international best practices such as WRI WBCSD guidance and relevant ISO standards.
Rigorously determining what the customer would have used without your product. This is the most critical and challenging step.
Calculating avoided emissions while considering the product life cycle and performance differences.
Documenting all assumptions and data to ensure a conservative and defensible approach.
Integrating Scope 4 results into your annual ESG or sustainability report and investor communications.
Our approach ensures accurate and justified avoided emissions calculations.
We identify the exact function of your sustainable product and define the baseline scenario, meaning the conventional product or service it replaces. Clear system boundaries are essential.
We collect data to assess emissions across the full life cycle of your product using LCA principles and collect equivalent data for the baseline alternative.
We apply calculation formulas to determine the emissions difference between the two scenarios, ensuring no overestimation or double counting.
Avoided Emissions Scope 4 = Emissions baseline minus Emissions your product
We document the entire process. The final report provides solid evidence of your positive contribution to climate action, ready for public communication and stakeholder dialogue.
