Scope 3 emissions refer to the indirect greenhouse gas (GHG) emissions that occur in a company's value chain, both upstream and downstream. Unlike Scope 1 (direct emissions from owned or controlled sources) and Scope 2 (indirect emissions from the generation of purchased electricity, steam, heating, and cooling consumed by the reporting company), Scope 3 encompasses all other indirect emissions that occur in the value chain. These can include emissions from purchased goods and services, business travel, employee commuting, waste disposal, use of sold products, transportation and distribution, and investments.
Understanding and managing Scope 3 emissions is crucial for companies aiming to reduce their overall carbon footprint and contribute to global climate goals.
The carbon footprint of cloud data storage includes the greenhouse gas emissions generated throughout the lifecycle of data centers, from the production and transportation of hardware to the energy consumption of servers and cooling systems.
Zero Circle’s carbon calculator is an invoice-based approach to determine an organization’s carbon footprint. It estimates the amount of carbon emissions created by each activity listed on an invoice, giving organizations detailed reports of the environmental impact of operations to facilitate data-driven decisions that reduce greenhouse gas emissions.
The key features are that it is invoice-based - Zero Circle’s solution is integrated with your invoices, providing a seamless and efficient way to manage your carbon footprint and customizable reporting - generate detailed reports to help you identify areas for improvement and track your progress over time.
An emission factor is a coefficient that quantifies the emissions released per unit of activity or consumption. It is used to estimate the amount of greenhouse gases or other pollutants produced by a specific source or activity.
Carbon offsetting is a carbon trading mechanism that allows businesses to balance their greenhouse gas emissions by investing in projects that reduce, avoid, or remove emissions in other areas.
If a company outsources its data center operations to a third-party provider, the emissions associated with the operation of those data centers can be considered Scope 3 Emissions. This is because the data center services are part of the company’s supply chain.
Wasabi is on a mission to store all the world’s data by making data storage simple, affordable, predictable, and secure.
Cloud data servers are the largest drivers of embodied carbon emissions by far. Therefore, the partnership between Wasabi and Zero Circle, which focuses on measuring the emissions associated with the energy consumption of the data center, becomes crucial.
Global emissions from cloud computing contribute to 4% of all global greenhouse gas emissions, which is only expected to increase. Knowing the carbon footprint of a data center is important because it helps organizations understand the environmental impact of their data storage and processing activities. By identifying and measuring greenhouse gas emissions, companies can implement strategies to reduce their carbon footprint, contributing to global efforts to combat climate change. Additionally, understanding the carbon footprint can lead to more efficient energy usage, cost savings, and compliance with regulatory requirements.
The total emissions are calculated by comparing the energy-related usage with the data center energy sources. The formula to calculate the data center's carbon footprint is:
Carbon footprint = Energy consumption x Emission factor
A carbon credit is a tradable permit or certificate that represents the right to emit one metric ton of carbon dioxide or the equivalent amount of a different greenhouse gas. Carbon credits are used in carbon trading schemes to incentivize the reduction of greenhouse gas emissions by allowing entities to either reduce their own emissions or purchase credits from others who have achieved reductions.
The calculated emission data can be utilized to purchase carbon credits and offset the carbon footprint effectively.
Zero Circle is a green finance marketplace that simplifies access to green capital. Its AI-powered platform streamlines sustainability reporting and automates key performance indicators (KPIs) to incentivize and accelerate green financing. The company helps its customers finance and build sustainable practices by tracking, managing and reporting sustainability and financial performance and matching them with lenders, partners and customers.
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