Scope 3 GHG emissions are all indirect emissions that occur in the value chain of the reporting company, including both upstream (production, processing, and transportation) and downstream (distribution and storage, use of product) emissions. Additional information about the various Scopes of emissions can be found on the Greenhouse Gas Protocol’s website here.
Figure: From GHG-Protocol’s “Corporate Value Chain (Scope 3) Accounting and Reporting Standard” https://ghgprotocol.org/sites/default/files/standards/Corporate-Value-Chain-Accounting-Reporing-Standard_041613_2.pdf
Value chain, or “Scope 3”, emissions are often the largest source of corporate carbon footprints, yet to-date they have been the lowest area of focus for most companies. Many have not yet taken direct action due several barriers, ranging from:
- Uncertainty about who is responsible for these indirect emissions
- Limited access to supplier emissions data
- Lack of guidance on how to account for reductions from investments in supply chains
- Inadequate recognition, and thereby reduced incentives, to invest in meaningful change beyond direct operations