In addition to the common terms Scope 1, 2 and 3, a new term is currently coming into focus: Scope 4This category, also known as "avoided emissions," offers companies a new perspective on assessing and communicating their impact on the climate. But what does it mean Scope 4 exactly, and why is it becoming increasingly important?
| April 11, 2024
🕓 Reading time 14 minutes
1. What are Scope 4 emissions?
In the complex web of corporate climate responsibility, Scope 1, 2, and 3 are common terms that describe a company's direct and indirect emissions. But now a new term is coming into focus: Scope 4.
Scope 4emissions, often referred to as “avoided emissions” referred to, include the greenhouse gas reductions, indirectly through the use of products or services of a company compared to more conventional alternatives can be achieved. Scope 4Emissions represent the GHG emissions (Greenhouse Gas Emissions) avoided by using a company's products or services compared to conventional alternatives. This approach enables companies to not only reduce their own emissions but also make a positive contribution to the Climate protection by offering innovative products or services. Quantifying these avoided emissions opens up a new dimension of environmental responsibility and climate management.
They go beyond the direct (Scope 1) and indirect (Scope 2 and 3) a company's emissions and consider the positive impact a company has on the environment, for example by offering more energy-efficient solutions that help end users reduce their own emissions.
However, this category is not standardized and its measurement and reporting are more complex than the first three scopes.
2. Who is Scope 4 interesting for?
Scope 4 for all Stakeholder who are interested in a comprehensive understanding of the climate impacts of companies and who want to look beyond the traditional boundaries of Scope 1, 2 and 3 to positive effects of products and services to be considered.
Pursue
Companies that offer products or services that lead to a reduction in greenhouse gas emissions for their customers can find Scope 4 a possibility to to quantify and communicate positive impact. It enables them to paint a more comprehensive picture of their environmental impact, which can be useful for internal strategy development and market positioning.

Investors
Investors who want to invest in sustainable companies can Scope 4 as an indicator of a company's commitment to environmental responsibility and innovation. This can play a role in the assessment of ESG (Environmental, Social, and Governance) factors.
consumer
Consumers who increasingly value sustainability can benefit from Scope 4information to make more informed decisions when purchasing products or services that lead to Reducing their own carbon footprints contribute.
Politics and regulators
Governments and policy makers can Scope 4-use data to evaluate and understand the effectiveness of environmental policies and programs, how companies contribute to achieving national or international climate goals.
3. What are concrete application examples from different industries?
The Scope 3 materiality analysis with case studies conveys
With this GHG method you can identify your significant categories and reduce your effort noticeably

4. Does Scope 4 reduce Scope 1, 2 and 3 emissions?
5. According to which standard is Scope 4 accounted for?
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6. How do you account for avoided emissions?
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