Scope 3: definition

Scope 3 emissions are the rest of emissions that are produced that don’t fall under scope emissions 1 or 2. Scope 3 emissions occur from activities that happen outside of the company: such as from the manufacturing of purchased materials or the emissions created from business travel.

Scope 3 emissions are the additional non-energy, indirect, or value chain emissions that are produced that don’t fall under scope emissions 1 or 2. Scope 3 emissions occur from activities that happen outside of the manufacturing of purchased materials or employees or the emissions created from business travel.

Scope 3 covers both upstream (before the company’s operations) and downstream (after the company’s operations) activities, making it typical this the most difficult to reduce emissions category – with Scope 3 emissions sometimes accounting for over 70% of total emissions.

Examples of Scope 3 emissions:

• Upstream Scope 3 emissions which could occur before the productor service reaches the company, such as emissions from the extraction process, production, or transportation of materials. Upstream Scope 3 emissions could also include business travel, employee commuting, or waste generated from operations.
• Downstream Scope 3 emissions, which refer to the emissions created after the product/service leaves the company, could include emissions from the use of those sold products, how those products are distributed or transported, or their end of life treatment – such as by throwing away or recycling the product.

Scope 3 emissions are important seeing as these emissions are outside a company’s direct control, meaning they are inherently more difficult to measure and reduce. Despite this, it is still crucial for organizations to address them for a meaningful transition to sustainable business operations – which often requires collaboration with suppliers, customers, and other stakeholders.

FAQ

How is Scope 3 different from Scope 1 and Scope 2?

Scope 3 covers all other miscellaneous emissions across the value chain, whereas Scope 1 emission refers to direct emissions from owned or controlled sources and Scope 2 emissions refer to indirect emissions from purchased energy.

Why are Scope 3 emissions difficult to track?

Scope 3 emissions are more difficult to track seeing as they often involve third parties, nations outside of an organization’s origin store or production site, and complex supply chains with limited data transparency.

Are companies required to report Scope 3 emissions?

Scope 3 emissions are encouraged or even required for several reporting frameworks, such as the GHG Protocol and CDP.

How can companies reduce Scope 3 emissions?

Companies can reduce scope 3 emissions by sourcing sustainable materials, engaging suppliers on emission reduction, partaking in eco-design, and influencing customer use.

Do Scope 3 emissions apply to service-based businesses?

Yes, Scope 3 emissions can also apply to service-based business – such as the emissions created from travel, IT equipment manufacturing, cloud service electricity use, and employee commuting.