EXECUTIVE SUMMARY

Benchmark ESG Sustainability Program Management Webinar Series

Session 2: Break Down Scope 3

Emissions & Engage Suppliers
for Sustainability Data
Randy Burgdorf, Associate Director, Business Development & Engagement, Benchmark ESG
Amanda Petzinger, Associate VP, Strategic Growth & ESG/Sustainability, Benchmark ESG

SEPTEMBER 15, 2022

KEY TAKEAWAYS

•  Successful sustainability programs

must include monitoring of indirect
Scope 3 emissions, which are often
60-70%+ of a company’s carbon
footprint.

•  In response to a series of regulatory

proposals and financial incentives,
the effort to address Scope 3
emissions has gained momentum.

•  While diverse greenhouse sources

and ill-defined methodology may
complicate the monitoring of Scope
3 emissions, inaccurate estimates
are no substitute for primary data.

•  A robust digital platform is the

optimal solution for gathering
supplier data and monitoring value
chains for Scope 3 emissions and
other ESG compliance.

Break Down Scope 3 Emissions
& Engage Suppliers for Sustainability Data
OVERVIEW
Increased scrutiny on sustainability practices requires
emissions monitoring across entire value chains.
Corporate carbon footprints now extend beyond a
company’s direct actions to include all upstream and
downstream emissions. As the SEC prepares reporting
requirements for these “Scope 3” emissions, and
investors demand climate accountability, businesses
are scrambling for efficient greenhouse gas tracking
approaches.
Digital data collection platforms, such as Benchmark
ESG, provide solutions that not only tackle Scope 3
monitoring challenges but meet organizations wher-
ever they are on their operational sustainability and
ESG disclosure reporting journey. expand to address
additional ESG topics.
CONTEXT
This was the second session of Benchmark ESG’s
three-part Sustainability Program Management webi-
nar series. This webinar explored how Benchmark
ESG’s flexible, digital solution can streamline supplier
engagement programs and digitize supplier data
collection for Scope 3 emissions, ESG performance,
and more.
KEY TAKEAWAYS
Successful sustainability programs must
include monitoring of indirect Scope 3
emissions, which are often 60-70%+ of a
company’s carbon footprint.
As regulatory, economic, and ethical factors prompt
the prioritization of environmental stewardship, busi-
nesses must monitor greenhouse gases produced
across their entire value chain. Any company serious
EXECUTIVE SUMMARY
about a net-zero policy or sustainability targets must
manage all sources of emissions, whether direct,
indirect, or value chain-related.
Companies are accountable for all emissions gener-
ated in the life cycle of their products. For monitoring
and reporting purposes, these emissions fall into three
classifications:
• Scope 1. Includes emissions produced by company-
owned and controlled resources. This class reflects
the direct environmental footprint of facilities and
vehicles. It tallies all fuel types, all combustion
variations, on-site power plants, and any refrigerants
or process emissions.
• Scope 2. Includes emissions produced indirectly
for the energy used by a company. This class
considers greenhouse gases associated with all
electricity, steam, heat, and cooling purchased from
utilities. Though not generated onsite, they are
attributable to a company’s operations.
• Scope 3. Covers all other indirect emissions
generated throughout a company’s value cycle,
whether from suppliers, distributors, or offsite
activity. It includes upstream categories (purchased
goods, business travel, employee commutes, etc.)
as well as downstream sources (transportation,
distribution, use of products, etc.). In total, there are
15 categories of Scope 3 emissions.
Many businesses already track Scope 1 and Scope 2
data but, for most industry sectors, Scope 3 emissions
represent the largest footprint and the one that is
hardest to quantify. For most companies, Scope 3
emissions exceed Scope 1 and Scope 2 discharges
combined.
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Break Down Scope 3 Emissions
& Engage Suppliers for Sustainability Data
Figure 1: Scope 3 Standard
In response to a series of regulatory
proposals and financial incentives, the effort
to address Scope 3 emissions has gained
momentum.
Scope 3 emission conversations have accelerated over
the past year as environmental issues dominate
politics and markets. Boardrooms have taken note,
moved by regulatory developments and financial
incentives. Factors creating more attention for Scope 3
emissions include:
• Domestic regulation. The SEC proposed a broad
new rule for climate-related disclosures in March
2022. The regulation would establish reporting
requirements for Scope 1 and 2 emissions beginning
in fiscal year 2023, and Scope 3 emissions in 2024.
The proposal’s current form lacks specificity about
reporting quantification and corporate inclusion but
has gained C-suite attention and has put reporting
mechanisms in motion.
EXECUTIVE SUMMARY
• International regulation. Guidelines set forth by the
independent Task Force on Climate-Related Financial
Disclosures (TCFD) already supply standards for
Scope 3 reporting. Though not binding, TCFD recom-
mendations influence the regulatory landscape and
will soon become mandatory in countries including
the UK, New Zealand, France, Japan, Switzerland,
Singapore, and Hong Kong.
• Financial drivers. Climate plans have become
inextricably linked to bottom-line performance.
Consumers and investors already stress sustainabil-
ity, while capital markets, executive compensation
plans, and rating agencies increasingly demand
comprehensive emission reporting. Additionally, the
influence of carbon markets (like the European
Commission’s CBAM) will include Scope 3 emission
pricing and offsets.
These governmental and fiscal factors have alerted
businesses to the importance of Scope 3 emissions
while highlighting how difficult they are to inventory.
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Break Down Scope 3 Emissions
& Engage Suppliers for Sustainability Data
Regardless of these pressures, if
you’re looking to set some best-
practice-based targets for reducing
your footprints, Scope 3 needs to be
included.
Amanda Petzinger, Benchmark ESG
While diverse greenhouse sources and ill-
defined methodology may complicate the
monitoring of Scope 3 emissions, inaccurate
estimates are no substitute for primary data.
In the ongoing battle against climate change, data and
monitoring are critical. Scope 3 emissions are particu-
larly difficult to measure.
Scope 1 emissions are generated in-house, and Scope
2 emissions can be tracked by the balance sheet, but
Scope 3 emissions accumulate all along a product’s
lifecycle. Accurate measurement requires primary data
from suppliers, distributors, and buyers, both upstream
and downstream. This information is challenging to
collect without a significant commitment of dedicated
resources and buy-in from business partners.
Scope 3 emissions are also difficult to quantify due to
their expansive and ambiguous nature. The 15 reporting
categories can each be broken down in several ways,
dramatically expanding potential emission sources.
Acceptable computation methods can also be vague, as
published protocols allow various calculation techniques.
To avoid collection/calculation difficulties, many compa-
nies use spend-based estimates to generate Scope 3
reports. Industry experts, however, have determined
that these estimates are highly inaccurate, often
relying on sector-level data that can be outdated or
EXECUTIVE SUMMARY
may wildly misrepresent your actual emissions. They
also don’t allow you to show emission reductions
without an overall decrease in spend. For example,
spending more on low-carbon concrete may decrease
your actual emissions, but will reflect more emissions
using a spend-based approach. So, more accurate data
can improve the reliability of your emissions reporting
and show your progress towards verifiable emission
reduction targets.
That said, most industry experts agree that it’s best to
start somewhere, even if your data sources are not
perfect. Spend-based data can be the starting point
that you use until primary or high-quality secondary
data is available. Collecting primary data and engaging
with your supply chain allows you to slowly improve
the quality of your emissions disclosures. Using a
digital solution can help you build the foundation of
your emissions accounting and improve upon your
GHG inventory as higher-quality data becomes
available.
Securing emission data without a
centralized campaign platform can be
especially challenging for short-staffed
teams. Establishing reporting
programs, engaging suppliers,
following up on submissions, and
aggregating data are all labor-intensive
operations.
Amanda Petzinger, Benchmark ESG
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 EXECUTIVE SUMMARY
Break Down Scope 3 Emissions
& Engage Suppliers for Sustainability Data

A robust digital platform is the optimal
solution for gathering supplier data and
monitoring value chains for Scope 3
emissions and other ESG compliance.
The most efficient, reliable, and accurate method for
monitoring Scope 3 emissions is with a centralized
data-collection platform. By populating a database
with all relevant suppliers and automating regular
reporting practices, companies can consistently
monitor Scope 3 emissions with easily acquired
primary data.
Integrated tracking tools like Benchmark ESG’s digital
management suite enhance sustainability reporting in
a number of key ways:
• Organization. Hosting all emission information in
one location allows easier comprehensive analysis,
sharing, tagging, and monitoring.
• Customization. Starting with curated survey tem-
plates, users can tailor information collection to best
fit internal metrics and targets. Companies can
request supplier usage numbers around energy,
water waste, safety, emissions, and revenue.
• Documentation. Maintaining a consolidated emis-
sion database prepares companies for whatever
reporting regulations are enacted, complete with a
paper trail in case of audits.
• Validation. Rather than relying strictly on self-report-
ing, the platform can request supporting attach-
ments. Documentation ensures accuracy and
establishes a chain of information to satisfy third-
party verification requirements.
• Expansion. After establishing a reporting protocol
across the value chain, it can expand to encompass
all manner of ESG issues. Data collection can help
ensure responsible behavior related to human
trafficking and ethical sourcing, free of conflict
minerals.
Supplier engagement has expanded
beyond regulatory requirements to
include areas like qualification, risk
assessment, and sustainability. In
addition to assembling quantitative
data and environmental perspectives,
reporting suites can serve as a melting
pot to address broader ESG social
topics.
Randy Burgdorf, Benchmark ESG

• Efficiency. Registered suppliers are provided unique

URL portals and automatically prompted to update
submissions, so data is kept current with minimal
resources required.

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 EXECUTIVE SUMMARY
Break Down Scope 3 Emissions
& Engage Suppliers for Sustainability Data

BIOGRAPHIES A key component of Benchmark’s product and solution

Randy Burgdorf
Associate Director, Business Development &
Engagement, Benchmark ESG
Randy Burgdorf, Associate Director, Strategic Growth
at Benchmark Digital Partners (brand owner and
service provider of Benchmark ESG), leads Benchmark
ESG’s Strategic Growth & Enable team organization
with a strong focus on strategic initiatives within the
Product Stewardship, Responsible Sourcing, Supplier
Sustainability & ESG space.
Prior to his time within the Strategic Growth organiza-
tion, Randy spent four years as a leader within
Benchmark ESG Subscriber Services organization
helping new and current subscribers with their deploy-
ment and continued evolution of the Benchmark
platform across a multitude of functionality areas.
Randy has also been a key part of the Analytics
Solution team helping with the implementation and
training of Benchmark’s integration with Tableau. Randy
has a bachelor’s degree in Business Administration
from the University of Dayton.
Amanda Petzinger
Associate VP, Strategic Growth & ESG/Sustainability,
Benchmark ESG
evolution includes collaborating with subscribers,
partners, and industry leaders to ensure the latest
industry trends and program challenges are thought-
fully considered and addressed. Amanda is instrumen-
tal in facilitating this cross-subscriber engagement by
chairing Benchmark’s Annual User Conference, All-
Customer Calls, Advisory Group, and various
Collaboration Workgroups, including current work-
groups for COVID-19 Pandemic Response and ESG
Program Excellence.
In addition to her product management and customer
engagement responsibilities, Amanda also has 15+
years of expertise implementing, configuring, design-
ing, and supporting Benchmark ESG’s 65+ web-based
applications, as well as extensive experience support-
ing subscribers in their quest for ESG and EHS opera-
tional excellence. She also serves as the advisor for
Benchmarks’ Sustainability suite of applications.
Amanda received her bachelor’s degree in
Management Information Systems and Spanish from
Xavier University in 2010, with summa cum laude
distinction.

Amanda Petzinger, Associate VP of ESG/Sustainability

Digital Solutions at Benchmark Digital Partners (brand
owner and service provider of Benchmark ESG), leads
the company’s ESG and Sustainability Practice. In this
role, Amanda and her team ensure the continual
evolution of Benchmark’s Sustainability & ESG solu-
tions in alignment with subscriber, market, and regula-
tory needs; provide best practice insights and thought
leadership in the ESG space; and manage Benchmark’s
internal ESG programs and initiatives.

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