What does "Scope 3" mean?
Table of Contents
Scope 3 emissions refer to the greenhouse gases produced indirectly by a company’s activities. Unlike direct emissions (Scope 1) from a company's own operations or indirect emissions (Scope 2) from the energy it purchases, Scope 3 covers all other emissions that happen in the value chain. This includes everything from the extraction of raw materials to the disposal of products after they are used.
Importance of Scope 3
Tracking Scope 3 emissions is crucial for understanding the full impact a company has on the environment. Since these emissions often represent the largest share of a company’s total carbon footprint, addressing them is key to making real progress in reducing overall greenhouse gas emissions.
Challenges with Scope 3
Measuring Scope 3 emissions can be complicated. Companies often struggle with gathering accurate data from their suppliers and other partners in the supply chain. This can lead to underestimations or inaccuracies in reporting. Without reliable data, it becomes difficult for companies to set effective sustainability goals and make informed decisions.
The Role of Transparency
For companies to improve their performance regarding Scope 3 emissions, transparency is essential. By sharing detailed information about their supply chains and emissions, they can hold themselves accountable and encourage others to do the same. This can lead to better practices across all sectors, contributing to a more sustainable future.