Strategic Focus: The Contingent Use of Scope 4 Avoided Emissions For Low-Carbon Storytelling

26 Apr, 2024

Access this research

Access all Corporate Energy Leaders content with a strategic subscription or buy this single report

Need help or have a question about this report? Contact us for assistance

Executive Summary

Scope 4, or avoided emissions, quantify the theoretical GHG reductions from using less carbon-intensive products or services. However, accurately measuring these emissions is challenging, due to reliance on speculative assumptions and the difficulty of proving direct emission reductions. Despite these issues, avoided emissions narratives help organizations quantify contributions towards low-carbon product design and supply chains, as well as towards climate-positive solutions. Transition risk assessments incorporating avoided emissions offer strategic insights for aligning with a low-carbon economy, albeit with acknowledged estimation limitations.
Scope 4 avoided emissions are a fuzzy proxy for a low-carbon future
Scope 4 avoided emissions measurement has significant limitations
Firms should apply Scope 4 emissions calculations for well-vetted, low-carbon strategy decisions
Figure 1. Avoided emissions: definitions and examples from different sectors
Figure 2. Avoided emissions and assumptions that can reverse them
Figure 3. Choice of base case for comparison can lead to huge differences in avoided emissions
Figure 4. WBCSD’s three gates and nine reporting principles for avoided emissions claims

About the Authors

Adam Barnard

Adam Barnard

Principal Analyst

Adam is a Principal Analyst in the Verdantix Net Zero & Climate Risk practise. Prior to joining Verdantix, Adam was a Director at an environmentally focused US investment ...

Ryan Skinner

Ryan Skinner

Research Director

Ryan is a Research Director at Verdantix, where he leads a team of analysts delivering research, data and advisory services that help clients navigate the fast-evolving landsc...

View Profile

Other related content

Webinar
Digital Transformation Leaders
Digital Grid Technologies
Corporate Energy Transition Solutions
Corporate Energy Leaders
Built Environment Energy & Decarbonization
Carbon Management Software
Corporate Sustainability & Climate Change Services
Corporate Sustainability Leaders
Future Of Digital Decarbonization: Why ...

Digital decarbonization is evolving rapidly, and many of the tools used for carbon reporting today are not designed to support the operational decisions organizations need to make ...

Upcoming / 28 May, 2026

Webinar
Corporate Energy Transition Solutions
Corporate Energy Leaders
Built Environment Energy & Decarbonization
Sustainable Supply Chains
Corporate Sustainability Leaders
Manufacturing Operations Management
Industrial Transformation Leaders
How Industrial Firms Are Navigating Ene...

Energy volatility is no longer a future risk. It is a present-day operational challenge. Industrial firms are under growing pressure from fluctuating prices, shifting dependencies ...

Upcoming / 27 May, 2026

Webinar
Industrial Transformation Leaders
Asset Maintenance Software
Field Services Management
Industrial Analytics & Data Management
Corporate Sustainability Leaders
Sustainable Supply Chains
Corporate Risk Leaders
Enterprise Risk & GRC
Corporate Energy Leaders
Digital Transformation Leaders
Industrial Agility In Action: Digital S...

Industrial firms are being hit by operational shocks with growing frequency and complexity. Supply chain disruptions, energy price volatility, labour shortages and rapid shifts in ...

Upcoming / 16 April, 2026

Blog
EHSQ Corporate Leaders
Corporate Risk Leaders
Real Estate Leaders
Industrial Transformation Leaders
Digital Transformation Leaders
Corporate Energy Leaders
Corporate Sustainability Leaders
Industrial Firms Are Entering The Age O...

Industrial firms are becoming accustomed to operating in environments that change faster than their traditional planning processes were designed to handle. Supply chains shift unex...

15 April, 2026

Blog
Corporate Energy Leaders
At A Time Of Global Volatility, The US ...

On March 23, the Trump administration finalized a “deal” with TotalEnergies, under which the US will pay the French energy firm $1 billion in taxpayer dollars to relinquish offsh...

09 April, 2026

Webinar
Industrial Transformation Leaders
Asset Maintenance Software
Field Services Management
Industrial Analytics & Data Management
Corporate Sustainability Leaders
Sustainable Supply Chains
Corporate Risk Leaders
Enterprise Risk & GRC
Corporate Energy Leaders
Digital Transformation Leaders
The Industrial Agility Imperative: Tech...

Industrial firms around the world are being hammered by operational dislocations and disruptions. Labour shortages, supply chain chokepoints, fast-changing import tariffs, rapid sh...

25 March, 2026