What is SCOPE 3
SCOPE 3 is a category of greenhouse gas emissions that includes all other indirect emissions not covered by SCOPE 2. These emissions occur in the organization's value chain, including supplier and customer activities. SCOPE 3 emissions are often the most extensive and complex part of an organization's carbon footprint because they cover a wide range of activities outside the organization's direct control. This framework is defined by the GHG Protocol (Greenhouse Gas Protocol) and includes 15 categories of emissions.
Main Categories of SCOPE 3 Emissions
SCOPE3 emissions are divided into 15 categories, covering the entire value chain of an organization:
- Purchased Goods and Services: Emissions associated with the production and delivery of goods and services that the organization purchases.
- Capital Goods: Emissions related to the production and delivery of capital goods, such as buildings, machinery, and equipment.
- Fuel- and Energy-Related Activities: Emissions from the extraction, production, and transportation of fuels and energy not included in SCOPE 1 or 2.
- Transportation and Distribution (Upstream): Emissions from the transportation and distribution of products and materials that the organization purchases.
- Waste Generated in Operations: Emissions associated with the treatment of waste generated during the organization's operations.
- Business Travel: Emissions related to employees' business travel.
- Employee Commuting: Emissions associated with the transportation of employees to and from work.
- Leased Assets (Upstream): Emissions from leased assets that the organization does not own but uses for operational purposes.
- Transportation and Distribution (Downstream): Emissions from the transportation and distribution of products that the organization sells.
- Processing of Sold Products: Emissions associated with the energy processes and operations that occur during the processing of sold products by customers.
- Use of Sold Products: Emissions related to the use of products by customers.
- End-of-Life Treatment of Sold Products: Emissions related to the disposal and end-of-life treatment of products.
- Leased Assets (Downstream): Emissions from leased assets that the organization owns but leases to other parties.
- Investments: Emissions associated with the organization's investments.
- Franchises: Emissions related to activities within franchise operations.
How SCOPE 3 Works
- Identifying Emission Sources: Organizations identify all relevant emission sources within their value chain that fall under Scope 3 categories.
- Measuring and Quantifying Emissions: Using emission factors and methods for calculating greenhouse gas emissions, organizations quantify emissions from each category. These methods may include data collection from suppliers and partners.
- Reporting and Monitoring: Emissions are regularly reported in internal and external sustainability reports, and the organization monitors progress in achieving emission reduction goals.
Examples of Initiatives to Reduce SCOPE 3 Emissions
- Collaboration with Suppliers: Organizations can collaborate with suppliers to improve their processes and reduce emissions in the supply chain.
- Supporting Circular Economy: Implementing strategies to support recycling and reuse of materials can reduce emissions associated with the production and disposal of products.
- Energy Efficiency: Improving the energy efficiency of products and services can reduce emissions during their use by customers.
- Innovation in Transportation: Optimizing logistics and using low-emission transportation methods can reduce emissions from transportation and distribution.
SCOPE 3 emissions represent a key aspect of managing an organization's carbon footprint and are crucial for its efforts to reduce greenhouse gas emissions. Although managing SCOPE 3 emissions can present certain challenges, effective implementation offers several benefits, including improved supply chain management, enhanced reputation, and contribution to achieving climate goals.
