Why Nobody Measures the Scope 4 (Avoided) Emissions? Let’s Get It Started!

As the urgency of climate action intensifies, organizations are increasingly required not only to reduce their instantaneous internal emissions (Scopes 1 and 2) and their value chain impacts (Scope 3), but also to demonstrate their overall contribution to climate change. Therefore, this paper introduces and formalizes the concept of Scope 4 emissions, defined as avoided emissions enabled by a company’s products, services, or business models, representing the fourth strategic pillar in corporate climate accounting. The paper proposes how to quantify the Scope 4 emissions through the decarbonization plan, using a stadium decarbonization plan as an illustrative example to show how Scope 1–3 reductions can be complemented by cumulative Scope 4 impacts, the advantages of undertaking proactive approaches toward sustainability and proposing the concept of relative carbon neutrality. Finally, the paper connects the Scope 4 emissions with ESG factors, highlights possible risks and challenges associated with its computation, and inviting regulators and policy makers to devise new Scope 4-based policies and incentives needed when considering the directives’ dynamics (e.g., the Omnibus Package).