Written by

In this article

Supply Chain Glossary
Published: 

Scope 3 emissions

What are Scope 3 emissions?

Scope 3 emissions refer to indirect greenhouse gas emissions generated by activities associated with an organization's value chain, including its upstream and downstream activities such as procurement, transportation, product use, and disposal. These emissions occur outside of an organization's direct control but are a result of its business activities.

How to calculate Scope 3 emissions

Calculating Scope 3 emissions involves identifying and quantifying the greenhouse gas emissions associated with various activities across the entire value chain. This includes gathering data on supplier emissions, employee commuting, business travel, product transportation, and end-of-life disposal. Specialized emissions reporting tools and methodologies, such as the Greenhouse Gas Protocol, are often used to measure and report scope 3 emissions.

How to reduce Scope 3 emissions

Reducing Scope 3 emissions requires collaboration and engagement with suppliers, customers, and other stakeholders to address emissions throughout the value chain. Strategies may include improving energy efficiency, sourcing materials from sustainable suppliers, optimizing transportation routes, promoting circular economy practices, and encouraging responsible product usage and disposal.

Related terms