can claim an overall decrease in annual carbon dioxide emissions – and receive high scores from the CDP – despite their actual emissions increasing.
Despite the rise in emissions, the CDP scored Nike A-. H&M also self-reported “gross global emissions” increases in 2017 and 2018, but because those emissions increased less than revenue did, it reported an overall decrease and was also awarded an A- each year. Scope 1 emissions are those that stem directly from the company burning fossil fuels. Scope 2 emissions are those which come from energy bought from utility providers. Scope 3 emissions are all the other indirect emissions that occur along the value chain. For the CDP report, companies provide “gross global combined Scope 1 and 2 emissions”, and self-report whether these have increased or decreased against revenue increase.
Critically, many companies exclude Scope 3 emissions, which are categorised as upstream or downstream, meaning they do not account for the pollution produced by their supply chain. Although Nike tracks these emissions, it does not provide a gross total. Business travel is calculated as Scope 3 upstream emissions, meaning the impact of its employees’ flights is not included in its “gross global emissions”.
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