Managing GHG Emissions in Scope 3

Summary

The real estate industry accounts for a large proportion of the global GHG emissions, with most of the emissions coming from scope 3. While many real estate companies have been reporting on scope 1 and 2, scope 3 emissions remain under-reported. Scope 3 emissions are, however, difficult to measure. This thesis therefore aimed to increase the knowledge of scope 3 emissions management in the Swedish real estate sector and examine what motivates six Swedish real estate companies to engage in scope 3, how they manage emissions in scope 3 and what (if any) the challenges are to manage scope 3. The empirical data revealed that companies engage in scope 3 because of various reasons, but the primary factors that could be drawn from the study were market expectations, laws, and regulations, demands from the financial sector and willingness to make a change. The research also showed that many Swedish real estate companies are still mapping their scope 3 emissions. To reduce scope 3 emissions, companies use a combination of internal and external management control systems, such as environmental policies, climate budgets, and external guidelines. However, to fully implement the tools, companies must collaborate with other actors. Lastly, the study’s empirical findings showed that the main challenges with scope 3 emission management is the boundaries for scope 3, collection and quality of data and, collaboration with other actors in the value chain.