Making things (that don’t exist) count: a study of Scope 4 emissions accounting claims

Abstract

Purpose

Avoided emissions refer to greenhouse gas emission reductions that are a result of using a product or are emission removals due to a decision or an action. Although there is no uniform standard for calculating avoided emissions, market actors have started referring to avoided emissions as “Scope 4” emissions. By default, making a claim about Scope 4 emissions gives an appearance that this Scope of emissions is a natural extension of the existing and accepted Scope-based emissions accounting framework. The purpose of this study is to explore the implications of this assumed legitimacy.

Design/methodology/approach

Via a desktop review and interviews, we analyse extant Scope 4 company reporting, associated accounting methodologies and the practical implications of Scope 4 claims.

Findings

Upon examination of Scope 4 emissions and their relationship with Scopes 1, 2 and 3 emissions, we highlight a dynamic and interdependent relationship between quantification, commensuration and standardization in emissions accounting. We find that extant Scope 4 assessments do not fit the established framework for Scope-based emissions accounting. In line with literature on the territorializing nature of accounting, we call for caution about Scope 4 claims that are a distraction from the critical work of reducing absolute emissions.

Originality/value

We examine the implications of assumed alignment and borrowed legitimacy of Scope 4 with Scope-based accounting because Scope 4 is not an actual Scope, but a claim to a Scope. This is as an act of accounting territorialization.

Citation

Young-Ferris, A., Malik, A., Calderbank, V. and Jacob-John, J. (2024), "Making things (that don’t exist) count: a study of Scope 4 emissions accounting claims", Accounting, Auditing & Accountability Journal, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/AAAJ-04-2023-6406