By: Chermaine Yap
The Origins of Emissions Scoping | Definition of Scopes 1, 2, and 3 Emissions | We Cannot Manage What We Do Not Measure | Reducing Emissions Within the Palm Oil Industry | Empowering Smallholders | Navigating the Challenges Ahead
Understanding the product carbon footprint and palm oil is vital as the world races towards a net-zero future. Navigating the labyrinth of carbon footprints and emission jargon can feel like deciphering a cryptic language, such as “Scopes 1, 2, and 3 emissions.”
This blog aims to demystify these concepts, particularly in the context of the palm oil industry, offering insights into initiatives aimed at reducing emissions in the sector.
The Origins of Emissions Scoping
To begin with, the concept of emission scopes originated from the Greenhouse Gas (GHG) Protocol, a widely accepted international standard for measuring and managing greenhouse gas emissions.
The purpose of categorizing emissions into scopes is to provide a standardized framework. Consequently, organizations can streamline identifying and accounting for different sources of greenhouse gas emissions and drive emissions reduction actions across supply chains.
This categorization is particularly important when analyzing the product carbon footprint and palm oil operations.
Definition of Scopes 1, 2, and 3 Emissions
In a nutshell, Scopes 1, 2, and 3 represent distinct categories of emissions based on their source and control.
- Scope 1: covers direct emissions from owned or controlled sources
- Scope 2: pertains to indirect emissions from purchased energy
- Scope 3: encompasses indirect emissions from the entire value chain
Scope 1 Emissions: Taking Responsibility for Direct Emissions
First, Scope 1 emissions encompass direct emissions from sources within a company’s control. Example includes combustion in owned or controlled boilers and furnaces.
In the palm oil industry, these emissions come from:
- Plantation soil management
- Biomass combustion for electricity and heat
- Fuel combustion by company-owned vehicles and equipment
- Palm fruit processing
Scope 2 Emissions: Accounting for Indirect Emissions
Then, these are indirect emissions resulting from purchased energy, such as electricity from the grid or heat and steam from third parties.
Although indirect, these emissions still significantly impact the product carbon footprint and the palm oil processing stages.
Scope 3 Emissions: Considering the Full Lifecycle Impact
Moreover, Scope 3 emissions include all other indirect emissions across the value chain (e.g., production of purchased materials, third-party transportation, product use, and disposal).
Often, the largest source of a company’s emissions is categorized into 15 types under the GHG Protocol to ensure clarity and avoid double-counting.
In the context of the product carbon footprint and palm oil, Scope 3 is especially critical as it includes deforestation, logistics, and consumer behavior.
In the palm oil industry, Scope 3 may involve:
- Emissions from supplier land use changes
- Third-party transportation
- Product distribution, usage, and disposal
Read More: How Do Forests Sequester and Absorb Carbon?
We Cannot Manage What We Do Not Measure
To move forward effectively, approaching the measurement, reporting, and reduction of the product carbon footprint and palm oil emissions requires a systematic, relatable process.
Understanding one’s emissions is crucial, much like analyzing financial habits to reduce spending.
This understanding lays the foundation for targeted, impactful environmental initiatives. It addresses both direct and indirect contributions to a product’s overall carbon footprint.
Reducing Emissions Within the Palm Oil Industry
For instance, Musim Mas has committed to achieving net-zero emissions by 2050, aligned with the Science Based Targets initiative (SBTi). Since adopting a No Deforestation, No Peat, and No Exploitation (NDPE) Policy in 2014, its operations have remained 100% free from deforestation.
In addition, Musim Mas was also the first major palm oil group to commit to methane capture at all mills, with 17 facilities avoiding a total of 619,749 MT CO2e in 2022 alone.
The captured methane powers operations, housing, and community facilities, improving the product carbon footprint and the palm oil processing impact.
To reduce Scope 3 emissions, palm oil producers must collaborate with suppliers and promote sustainable practices.
Furthermore, Musim Mas actively trains suppliers, requires NDPE compliance, and collects sustainability data using a Self-Assessment Tool (SAT), which helps in crafting time-bound improvement roadmaps.
Beyond individual action, collective engagement is key. As a result, Musim Mas joined 13 other agri-commodity firms in the Agriculture Sector Roadmap to 1.5°C. The initiative aims to combat deforestation while aligning with global climate goals.
Empowering Smallholders
It’s also worth noting that smallholders control 40% of Indonesia’s palm oil area. Musim Mas supports them through training in Good Agricultural Practices (GAP) and NDPE standards.
Using a landscape-level approach, they partner with local governments and stakeholders, creating long-lasting impact and integration into sustainable supply chains.
Supporting smallholders also enhances the transparency and effectiveness of efforts to lower the product carbon footprint and palm oil at the grassroots level.
Read More: Empowering Plantation Communities Through Education
Navigating the Challenges Ahead
To conclude, while challenges remain in reducing the product carbon footprint and palm oil emissions, clear goals and continuous innovation offer a pathway forward.
Ultimately, achieving sustainability requires involvement across the supply chain—from large producers to smallholders.
Musim Mas remains committed to its NDPE principles and to pioneering practices that ensure a sustainable, low-emission future for palm oil.
Reducing the product carbon footprint and palm oil impact will continue to depend on data-driven strategies, collaboration, and innovation across the entire value chain.
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