Overview
Scope 3 emissions encompass all indirect emissions across a company's value chain, including supply chain activities, product use, employee commuting, and end-of-life treatment. They typically represent 70-90% of a company's total carbon footprint. Managing Scope 3 requires collaboration across entire value chains, data collection from suppliers, and lifecycle assessment expertise. New regulations and investor expectations are making Scope 3 reporting mandatory. Companies leading in Scope 3 management gain competitive advantages through lower costs and stronger stakeholder relationships.
Tags
emissions accountingvalue chainGHG protocolcarbon footprint
Economic Impact
High Impact
Addressing 70-90% of corporate emissions, unlocking supply chain efficiency and compliance.
Emerged
2011
Related Topics
Finance
Carbon Credit Trading
Market-based approach allowing companies to buy and sell emission allowances.
Policy
ESG Reporting Standards
Frameworks for disclosing environmental, social, and governance performance.
Social
Sustainable Supply Chains
Integrating environmental and social standards across global supply chain operations.