What Are Scope 3 Emissions?

When discussing emissions, companies categorize them into "Scopes" to identify their sources and level of control. Scope 3 emissions are indirect emissions occurring throughout a company's supply chain.

Why Are Scope 3 Emissions Important?

Scope 3 emissions typically constitute over 80% of a company's total carbon footprint. Unlike Scope 1 and 2 emissions which companies directly control, Scope 3 includes emissions from purchased goods, employee commuting, business travel, and other activities integral to operations.

Examples of Scope 3 Emissions

To illustrate Scope 3 emissions, they are classified into 15 categories by the Greenhouse Gas Protocol. Here are some examples with real-world impacts:

Type of Scope 3	Category	Description	Real-world Examples of Carbon Emissions
UPSTREAM	1. Purchased Goods and Services	Emissions from making and transporting the goods and services a company buys.	Office supplies, IT services, and other daily use items.
	2. Capital Goods	Emissions from producing and transporting long-term assets and equipment.	Machinery, vehicles, and equipment used for a long time.
	3. Fuel and Energy-Related Activities	Emissions from extracting, producing, and transporting energy.	Emissions from fuel used in company vehicles or energy used in the office.
	4. Upstream Transportation and Distribution	Emissions from moving goods before and after they reach the company.	Shipping products to the company.
	5. Waste Generated in Operations	Emissions from disposing of the company’s waste.	Waste from office activities, which can be reduced by recycling or reusing.
	6. Business Travel	Emissions from employees traveling for work or commuting to the office.	Flights and other travel for business meetings.
	7. Employee Commuting	Emissions resulting from employees' commuting activities.	Staff driving or using public transport to get to work.
	8. Upstream Leased Assets	Emissions from using and disposing of the products sold by the company.	Emissions from vehicles or equipment leased by the company.
DOWNSTREAM	9. Downstream Transportation and Distribution	Emissions from moving goods after they leave the company.	Transporting products to retailers or customers.
	10. Processing of Sold Products	Emissions from further processing of products sold by the company.	Manufacturing stages after the company sells a product.
	11. Use of Sold Products	Emissions from the use of products sold by the company.	Emissions from customers using a car made by the company.
	12. End-of-Life Treatment of Sold Products	Emissions from disposing of products at the end of their life cycle.	Emissions from recycling or disposing of e-waste.
	13. Downstream Leased Assets	Emissions from assets leased by customers or other entities.	Emissions from office equipment leased to clients.
	14. Franchises	Emissions from franchise operations.	Emissions from a fast-food franchise operated by a franchisee.
	15. Investments	Emissions from the company’s investments.	Emissions related to another company that the first company invests in.

Reducing Scope 3 Emissions

Reducing Scope 3 emissions involves collaborating with suppliers and customers. Here are some key strategies:

• Work with suppliers: Encourage suppliers to adopt sustainable practices and reduce their emissions.

• Design sustainable products: Make products that last longer, can be recycled, and have a lower environmental impact.

• Optimize transportation: Reduce emissions by improving logistics, using alternative transport methods, and leveraging technology.

• Engage employees and customers: Promote sustainable practices among employees and customers to reduce emissions from travel and product use.

Understanding and managing Scope 3 emissions is important for any company that wants to be environmentally responsible. By addressing indirect emissions and working together on solutions, businesses contribute to a sustainable future. Remember, sustainability is an ongoing journey, and every organization has a key role in making the world greener.

Understanding and Reducing Scope 3 Emissions

What Are Scope 3 Emissions?

Why Are Scope 3 Emissions Important?

Examples of Scope 3 Emissions

Reducing Scope 3 Emissions

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