Carbon transparency has been a growing priority for many companies. Now, new regulations are creating an even greater sense of urgency. Soon, many companies will be required to report their Scope 3 emissions as a prerequisite for doing business in certain markets, including the EU and California.

Scope 3 includes emissions that, as defined by the Greenhouse Gas (GHG) Protocol, are produced by companies’ value chains. So, imagine a company wants to sell “Brand X” in the EU. That company will need to account for and report all of the carbon emissions that go into the production, marketing, use and end-life of that product. This includes emissions produced by its material and service providers — even the converter that produces Brand X product labels.

Label and packaging value chain, working together

As a label converter or supplier to brands, this means your customers may expect higher standards of carbon emission reporting from your business. They may also come looking for your support as a label and packaging expert who can advise them on ways to produce these materials with a lower carbon footprint.

You do provide valuable influence regarding label material selection and packaging design, both factors that affect a brand’s carbon footprint. Some of the approaches to consider:

• Using materials that contain recycled (PCW, PCR) or renewable content.
• Choosing linerless label constructions, which contain about one-third less raw material than linered constructions.
• Making incremental changes by exploring the use of thinner facestocks and liners.
• Choosing label solutions that enable recycling, such as those recognized by the Association of Plastic Recyclers (APR).

Leverage supplier tools

You may also have at your disposal resources from your own suppliers. The Avery Dennison Sustainable ADvantage Portfolio, for instance, contains hundreds of products designed to help you and your customers lower carbon emissions.

And you can pair that portfolio with our carbon footprinting tool, which offers more thorough and objective data for the carbon impact of a specific Avery Dennison product. This data is delivered in the form of an emailed report that you can request through the Avery Dennison website. The footprinting tool is offered at no additional charge to customers.

The era of Scope 3 reporting is approaching fast

Some companies may struggle initially to see the benefit of Scope 3 reporting. But over time, greater carbon transparency promises to not only keep companies in regulatory compliance, but should emerge as a competitive boon in a world where consumers appear ever more willing to pay a premium for sustainability.

The bottom line is that the era of Scope 3 reporting is approaching fast. The label and packaging value chain have an opportunity to partner with brands, helping guide them toward compliance. Avery Dennison and other material providers can help with products and tools to help manage and track carbon footprint.