Strategies for more sustainable construction include reducing material use, transitioning to renewable/bio-based materials, reducing the carbon dioxide emissions of traditional materials, and promoting the circular economy and renovation. Optimal material usage, and the use of renewable/ recycled materials enable the reduction of the Scope 3 GHG emissions in a manufacturing company. Other strategies include choosing the most ecological transportation possible for both goods and commuting/travel, and educating and working throughout the whole value chain with suppliers by creating true, committed partnerships.
In early 2025, in relation to the upcoming corporate sustainability reporting requirements and to continue our efforts in sustainability at Peikko Group, we started a Scope 1-3 GHG Emissions Calculations project to understand the carbon emissions from our different factory units. Greenhouse gas emissions are emissions that are harmful to the environment, such as Carbon dioxide (CO2). Carbon dioxide is the primary greenhouse gas, responsible for about three-quarters of emissions.
Project overview and collaboration
We organized an opportunity for LUT Circular Economy Master's students to join our project and support the Peikko Sustainability team with the calculations during Q2. KPMG did the guidance and verification of calculations, and we used the GHG Protocol, which supplies the world's most widely used greenhouse gas accounting standards and guidance.
The overall Peikko Emissions calculation project included: building a multifunctional sustainability team with sustainability responsible persons in the different units, establishing organizational boundaries to understand and document what data to gather, establishing a base year and collecting emissions data from databases, establishing a GHG management process, preparing a carbon inventory report, and identifying opportunities to reduce emissions.
Key findings
Our analysis revealed a critical insight: between 80-90% of the indirect emissions came from Scope 3 and specifically raw materials - Category 1 purchased goods and services in the GHG protocol. This is very typical for a manufacturing entity, and especially companies producing steel products, to have approximately 90% emissions deriving from raw materials.
This finding highlights where Peikko's greatest impact and opportunities for reduction lie - primarily in our supply chain and material choices rather than in our direct operations.
Next steps and industry impact
It was a very successful international collaboration with relevant groups and a good starting point to understand emissions at Peikko Group. Next steps include efforts on how greenhouse gas emissions can be reduced, for example, by having a higher % of recycled raw materials and low-carbon energy contracts.
The European Commission is leading the way, as its strategic vision is to become a climate-neutral economy by 2050.
For more information contact: Enni Karikoski
Understanding greenhouse gas scopes 1-3
Scope 1, 2, and 3 emissions are greenhouse gases which are released across an organization's entire value chain. Scope 3 emissions are the most complex, as they are released before and after a product is delivered or consumed.
Scope 1: Scope 1 emissions are greenhouse gases that an organization emits from sources it owns or controls directly.
Scope 2: Scope 2 emissions are indirect, deriving from an organization's purchase of electricity, steam, heat, or cooling.
Scope 3: Scope 3 emissions, while often harder to categorize, can potentially contribute far more to an organization's overall carbon footprint than the other two scopes. An organization's Scope 3 emissions, also known as its life cycle emissions, are those that arise across the value chain, both upstream and downstream.
Infographic courtesy of: GHGProtocol.org
