What is Scope 3, and why is it important?
To take action to reduce emissions, we need to understand and measure where they’re sourced from in the first place. Greenhouse gas (GHG) emissions are categorised into three scopes that reflect the different kinds of emissions a company creates in its own operations and wider value chain.
Scope 1 emissions – from sources an organisation owns or controls directly – for example, from burning fuel in a company-owned vehicle fleet (if they’re not electrically powered).
Scope 2 emissions – caused indirectly by a company, through the production of energy it purchases and uses. For example, the emissions caused when generating electricity for a company’s offices would fall into this category.
Scope 3 emissions – encompass emissions that are not the result of activities from assets owned or controlled by a company but by those that it is indirectly responsible for up and down its value chain. Scope 3 emissions include all sources not within the Scope 1 and 2 boundaries. They cover the extraction and transformation of raw materials and the manufacturing, distribution, use and end-of-life of products.
‘Scope 3 affects all of us. It is very complex and demands collaboration, consistency, leadership, accurate data, transparency and, above all, action.’ John Herbert, General Secretary, EDRA/GHIN
Source - GHG protocol