Linde's Scope 3 Journey
Linde’s Approach to Scope 3 Estimation
Tackling climate change has been a longstanding focus for Linde. In 2020, we announced ambitious climate change targets as part of our SD2028 goals, and in 2021, we went even further, announcing our 2035 science-based absolute GHG reduction target and 2050 climate neutrality ambition. See our Road to Climate Neutrality (2028-2050). These targets reflect our strong focus on reducing our Scope 1 and 2 emissions, as these represent where we have the most control.
Linde has also provided an inventory of our Scope 3 emissions for several years, and these emissions are significantly smaller than our total Scope 1 and 2 emissions. Historically, categories not reported are areas that are small or deemed not relevant to our business, or areas that–like for many of our peers–are difficult to estimate or for which credible methodologies did not exist. In keeping with our practice of delivering the most transparent information to our stakeholders, we have been engaged in a rigorous process to (1) understand sources and estimation methodologies; (2) define the baseline; and (3) set reduction targets. Having published our Scope 1 and Scope 2 absolute reduction target, which was validated as science-based by SBTi, we are now strongly focused on our Scope 3 emissions inventory and on having a strong basis upon which we will set additional Scope 3 emissions reduction targets. Our 2021 Sustainability Report shares some of the work we are doing toward these efforts.
We are well along this journey and look forward to sharing more with you about our process around Scope 3.
Our Activities and Progress
- On an ongoing basis we seek readily available emissions factors from trusted sources, including a recent update of factors for electricity from the UK Department for Environment Food & Rural Affairs (DEFRA). We have also employed a new source of emissions data for capital goods, based upon the Organisation for Economic Co-operation and Development (OCED), EXIOBASE, the U.S. Bureau of Economic Analysis and the World Bank.
- We seek the most specific factors for key commodities. For example, we recently engaged academia and our suppliers for key commodities, including cylinder and tank assets, to validate emissions factors and streamline data collection methods. See more about these efforts in the 2021 Sustainable Development Report.
- For 2021, we increased the coverage to more than 95 percent of purchased goods and services.
- We reviewed spend-based methodologies for products and services and expanded our activities to include transport.
- We are also engaging suppliers and customer to understand their programs and targets, along with ways we can collaborate. We are also reviewing synergies. For example, like Linde, many of our suppliers and customers participate in the CDP Supply Chain Response, and such inputs are critical elements of our engagement strategy.
- Linde increased reporting of Scope 3, adding one additional category in 2021. Linde currently reports seven categories of Scope 3. In doing so, we join a select group of industry leaders who disclose discrete values for several categories.
- In order to baseline our emissions, Linde re-screened all fifteen Scope 3 emissions categories in 2022. This important work includes the process of estimation and methodology development and updates.
- Linde is on track to begin publishing estimates for all categories relevant to its business in 2023. While we continue to verify new and updated methods for estimating, the team is already considering potential reduction opportunities.
Linde currently reports seven categories Scope 3. Our inventory is available in the Sustainability Reports found in our Reporting Center.
Our Scope 3 inventory journey is well on the way! We will provide a full inventory and baseline in our upcoming sustainability report. This will be the basis for setting Scope 3 emissions reduction targets and will continue to drive forward the transformation of our product portfolio toward climate neutrality.