Decoding the Carbon Footprint: Indirect Emissions in the Middle Eastern Value Chain

In an era where sustainability is more than just a buzzword, understanding the full spectrum of carbon emissions has never been more crucial. While direct emissions often capture the limelight, indirect emissions, lurking in the shadows of the value chain, play a significant role. In the Middle East, a region undergoing rapid transformation, these indirect emissions present both challenges and opportunities.

1. What are Indirect Emissions?

At the heart of carbon accounting lie three scopes of emissions. While Scope 1 deals with direct emissions from owned or controlled sources, Scopes 2 and 3 dive into the world of indirect emissions¹. Scope 2 captures emissions from the generation of purchased electricity, steam, heating, and cooling. In contrast, Scope 3 encompasses all other indirect emissions that occur across a company’s value chain, from business travel to waste disposal.

2. The Middle Eastern Context

The Middle East, with its vast reserves of fossil fuels and burgeoning industries, has a unique relationship with indirect emissions. For instance, the chemicals sector in Oman and Saudi Arabia, a significant contributor to the region’s economy, grapples with indirect emissions stemming from processes like plastic waste in the value chain². As the region pushes towards diversification and sustainability, understanding and managing these emissions becomes paramount.

3. The Role of Corporate Reporting

Transparency is the cornerstone of effective carbon management. Middle Eastern companies are increasingly recognizing the importance of comprehensive reporting that doesn’t just stop at direct emissions³. International standards, such as those set by the Science Based Targets initiative, offer a roadmap for these companies, guiding them towards a sustainable future⁴.

4. Strategies to Manage and Reduce Indirect Emissions

Tackling indirect emissions requires a multi-faceted approach. Innovative technologies, from carbon capture to green energy solutions, are making inroads in the Middle East⁵. Moreover, companies are reimagining their supply chains, seeking sustainable alternatives and partnerships that align with their carbon reduction goals.

5. The Global Perspective

The Middle East’s endeavors in managing indirect emissions resonate on the global stage. As countries worldwide grapple with the challenges of climate change, the region’s efforts, guided by frameworks like the “Net Zero by 2050” roadmap, offer valuable insights⁶. International collaborations, knowledge exchanges, and shared best practices amplify the impact of these regional efforts.

6. The Way Forward

The journey towards a sustainable future is long and winding. For Middle Eastern companies, this means not just understanding their carbon footprint but actively working to reduce it. By prioritizing indirect emissions, these companies can not only achieve their sustainability goals but also position themselves as global leaders in carbon management.

Conclusion

Indirect emissions, often overlooked, hold the key to a sustainable future. As the Middle East strides forward, embracing change and innovation, addressing these emissions becomes imperative. Through collaboration, transparency, and a commitment to sustainability, the region is poised to make a lasting impact on the global carbon narrative.

References

1. How to measure and manage Scope 3 emissions: PwC
2. Sustainable Transition of the Chemicals Sector: Oman, Saudi Arabia …
3. MENA corporate sustainability and the climate disclosure gap
4. The Corporate Net-Zero Standard – Science Based Targets
5. Designed by CoRe Creative Services. RITM0400270
6. Net Zero by 2050 – A Roadmap for the Global Energy Sector