The Definition of Scope 3 Emissions

Definition of Scope 3 Emissions

Scope 3 emissions are the indirect greenhouse gas emissions that occur in a company's value chain but come from sources it does not own or control. For most companies they are the largest share of their total footprint, often far larger than Scope 1 and Scope 2 combined.

The 15 Scope 3 Categories

The GHG Protocol Scope 3 Standard groups value chain emissions into 15 categories. Upstream categories include purchased goods and services, capital goods, fuel- and energy-related activities, upstream transport, waste generated in operations, business travel and employee commuting. Downstream categories include transport and distribution of sold products, use of sold products, end-of-life treatment, leased assets, franchises and investments.

Why Scope 3 Is Hard to Measure

• Data comes from suppliers and customers, not from your own meters.
• Many companies start with spend-based estimates, then move to supplier-specific data over time.
• Results can change significantly as data quality improves.

Example of Scope 3 Emissions

An oil and gas services company found that its biggest Scope 3 sources were purchased steel and chemicals, contractor fleet travel to remote sites and flights for fly-in fly-out crews. It started by using spend data, then asked its ten largest suppliers for product-level emissions figures.

Frequently Asked Questions: Scope 3 Emissions

Do I have to report all 15 categories?

Not all categories apply to every business. Companies should screen each one and explain any they exclude.

Are contractor emissions Scope 3?

Usually, yes. Emissions from contractors' own vehicles and equipment fall in Scope 3 unless the company controls those assets.

Is Scope 3 reporting required?

Some regulations and standards require it for large companies, and many customers ask suppliers for it. Requirements vary by jurisdiction and are changing, so check the rules that apply to you.