Scope 3 Emissions
The GHG Protocol categorizes GHG emissions into three scopes:
- Scope 1: Direct emissions from sources a company owns or controls, such as fuel combustion.
- Scope 2: Indirect emissions from purchased energy, such as electricity.
- Scope 3: All other indirect emissions resulting from a company's value chain, both upstream and downstream.
Often referred to as value chain emissions, Scope 3 emissions are typically the largest contributor to a company’s total GHG emissions.
Upstream emissions are associated with external suppliers and the production of goods or services it purchases. These emissions arise from initial processes like raw material extraction, manufacturing, and transportation of goods. On the other hand, downstream emissions occur after a company’s product is sold and out of its direct control. They originate from end processes such as distribution, use, and disposal.
For example, an airplane manufacturer’s Scope 3 emissions would cover a wide range. From the fuel burnt in planes to the energy used to make steel for the aircraft, and even the fumes from employees’ commutes to work, these are just some factors that contribute to extensive indirect emissions.
While Scope 3 emissions are the most difficult to measure and reduce, the data allows organizations to identify emission hotspots and pinpoint specific activities that significantly contribute to their carbon footprint. This presents opportunities for mitigation efforts and drives towards creating a more sustainable supply chain.
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