All terms

Scope 3 Emissions

All other indirect greenhouse gas emissions that occur in a company's value chain.

What are Scope 3 Emissions?

Scope 3 emissions are all other indirect greenhouse gas (GHG) emissions that occur in a company's value chain, both upstream and downstream. They are not controlled by the reporting organization but are a consequence of its activities. Examples include emissions from purchased goods and services, business travel, employee commuting, waste generated, and the use and end-of-life treatment of sold products.

Why are Scope 3 Emissions important?

Scope 3 emissions often represent the largest portion of a company's total carbon footprint, particularly for industries with complex supply chains or product lifecycles. Addressing them is crucial for comprehensive decarbonization and requires collaboration across the entire value chain, driving broader systemic change.

Related terms

Want to explore this topic further? Browse connected glossary terms below.

Carbon Accounting

The process of measuring, tracking, and reporting greenhouse gas emissions and removals.

Core definitions
Scope 1 Emissions

Direct greenhouse gas emissions from sources owned or controlled by an organization.

Removal methods
Scope 2 Emissions

Indirect greenhouse gas emissions from the generation of purchased electricity, heating, or cooling.

Removal methods

Frequently asked questions

What are some common categories of Scope 3 emissions?

Common categories include purchased goods and services, capital goods, fuel- and energy-related activities not included in Scope 1 or 2, upstream transportation and distribution, waste generated in operations, business travel, employee commuting, downstream transportation and distribution, processing of sold products, use of sold products, end-of-life treatment of sold products, and franchises and investments.

Why are Scope 3 emissions difficult to measure?

Scope 3 emissions are challenging to measure due to their extensive nature, reliance on data from third parties (suppliers, customers), and the complexity of quantifying indirect impacts across a global value chain.

Do all companies need to report Scope 3 emissions?

While not always mandatory, a growing number of reporting frameworks and stakeholders expect companies to measure and disclose their material Scope 3 emissions, especially for setting robust net-zero targets (e.g., SBTi).