E - Environmental (Carbon, Energy, Resources, Climate) 5 min read

What is Scope 4 (Avoided Emissions)? Definition and Context

Credibility Check & Framework Comparison

To ensure absolute regulatory accuracy and reliability, we verify definitions across leading international frameworks before presenting our synthesized SME context.

Source Visit Source

GHG Protocol

"Emission reductions that occur outside a product's life cycle or value chain, but as a direct result of the use of that product or service."
Source Visit Source

EFRAG / ESRS E1

"Disclosures regarding avoided emissions or climate solutions, which must be reported separately from Scope 1, 2, and 3 inventories."
Source Visit Source

SBTi

"Guidelines distinguishing internal value chain reductions from external avoided emissions, ensuring avoided emissions are not used to meet net-zero targets."

ExecutESG Consolidated Definition

Scope 4 (Avoided Emissions)

Scope 4 emissions, or avoided emissions, are emission reductions that occur outside of a product's life cycle or value chain, but are enabled directly by the use of that product or service. This concept is not officially codified under the GHG Protocol but is widely used in strategic positioning.

Examples of Scope 4:

  • Selling energy-efficient devices that replace high-energy alternatives.
  • Providing teleconferencing software that directly eliminates corporate business travel.
  • Deploying sustainability software like AuraOS which streamlines resource tracking and prevents carbon waste.

SME Relevance & B2B Inbound Action:

SMEs with low-carbon product designs or software-as-a-service (SaaS) models can use Scope 4 metrics to build compelling sales materials. Proving that your solution avoids emissions for your corporate buyers is a powerful competitive differentiator.

← Back to all glossary terms

Automate Scope 1-3

Upload invoices or type energy metrics directly. ExecutESG calculates your Scope 1, 2, and 3 footprint in minutes with audit-ready accuracy.

Calculate Emissions Free

📚 Related Terms

Need Expert Help?

Speak to our senior sustainability analysts to get your EcoVadis or CSRD report verified.

Book a call with an analyst →

🍪 Your Privacy Options

We use strictly necessary cookies to keep you signed in and protect your session. With your explicit consent, we also use analytics cookies (Google Analytics GA4) to improve our service. You can choose to accept all cookies or only allow essential ones. Read our Privacy Policy.