Scope 3

Scope 3 emissions encompass all indirect greenhouse gas (GHG) emissions not covered in Scope 2 that occur throughout a company's value chain. These emissions result from activities both upstream and downstream of the organization's operations, including those from suppliers, product use, and disposal. While reporting Scope 3 emissions is optional, understanding them is crucial, as they often represent the majority of a company's total GHG emissions.

Key aspects of Scope 3 emissions include:

• Upstream Activities: Emissions from purchased goods and services, capital goods, fuel and energy-related activities not included in Scope 1 or 2, transportation and distribution, waste generated in operations, business travel, and employee commuting.
• Downstream Activities: Emissions from transportation and distribution of sold products, processing of sold products, use of sold products, end-of-life treatment of sold products, leased assets, franchises, and investments.
• Comprehensive Assessment: Evaluating Scope 3 emissions provides a holistic view of a company's environmental impact, highlighting opportunities for emission reductions across the entire value chain.

By assessing and addressing Scope 3 emissions, companies can develop more effective sustainability strategies, engage stakeholders throughout their value chain, and contribute to global efforts in mitigating climate change.

Source(s):

• The Greenhouse Gas Protocol. (2004). A Corporate Accounting and Reporting Standard.
• GHG Protocol. (n.d.). Corporate Value Chain (Scope 3) Standard.
• GHG Protocol. (n.d.). Scope 3 Calculation Guidance.

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