Scope 3 emissions are a category of greenhouse gas (GHG) emissions that occur as a consequence of the operations of an organization but are not directly controlled or owned by the organization.
They are part of the broader GHG Protocol Corporate Standard, which categorizes emissions into three scopes:
Scope 1: Direct emissions from owned or controlled sources, such as emissions from company vehicles or on-site fuel combustion.
Scope 2: Indirect emissions from the generation of purchased electricity, steam, heating, and cooling consumed by the reporting company.
Scope 3: All other indirect emissions that occur in the value chain of the reporting company, including both upstream and downstream emissions.
Scope 3 emissions are often the largest part of an organization's carbon footprint and can 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
Franchises and investments
Managing and reducing Scope 3 emissions can be complex due to the broad and varied nature of these emissions, often requiring collaboration with suppliers, customers, and other stakeholders throughout the value chain.