Scope 3
Last updated
Last updated
Scope 3 refers to the indirect greenhouse gas emissions that are produced as a result of a company's activities, but which occur in its value chain outside of its own operations. Scope 3 emissions are often referred to as "value chain emissions" and include emissions from activities such as purchased goods and services, transportation and distribution, waste generated in the supply chain, and the use and disposal of a company's products.
Scope 3 emissions are considered to be the most challenging and complex aspect of a company's greenhouse gas emissions, as they are often difficult to measure and track, and can involve multiple actors in a company's value chain. However, they are also typically the largest source of emissions for many companies, particularly those in industries such as manufacturing, retail, and food and beverage.
ESG reporting frameworks, such as the Greenhouse Gas Protocol, require companies to report on their Scope 3 emissions in addition to their direct emissions () and indirect emissions from purchased energy (). Reporting on Scope 3 emissions is important for companies to understand the full extent of their greenhouse gas footprint, and to identify opportunities for emissions reductions and improvements in their value chain.
