Scope 3 emissions are the result of activities from assets not owned or controlled by the reporting organization, but that the organization indirectly affects in its value chain.
- Supply chains is known as scope 3 emissions.
- Scope 3 emissions, also referred to as value chain emissions, often represent the majority of an organization’s total greenhouse gas (GHG) emissions.
- Scope 3 emission sources include emissions both upstream and downstream of the organization’s activities.
- Three “scopes” (scope 1, scope 2, and scope 3) are defined for GHG accounting and reporting purposes.
- Scope 1 or direct GHG emissions occur from sources that are owned or controlled by the company, for example, emissions from combustion in owned or controlled boilers, furnaces, vehicles, etc.
- Scope 2 accounts for GHG emissions from the generation of purchased electricity consumed by a company.
