Scope 3 covers all indirect greenhouse gas emissions in an organisation’s value chain: from purchased materials and transport to the use and end of life of sold products. It is the third category in the GHG Protocol, next to direct emissions from own operations (scope 1) and emissions from purchased energy (scope 2). For most organisations, scope 3 is by far the largest part of the footprint. According to CDP, it is on average about three quarters of the total footprint, and in many sectors 70 to 90 percent or more. It is therefore also the place where most reduction potential can be found.
Scope 1, 2 and 3 briefly explained
- Scope 1 — direct emissions from owned or controlled sources, such as fuel in vehicles and heating systems.
- Scope 2 — indirect emissions from purchased energy, such as electricity and heat.
- Scope 3 — all other indirect emissions in the value chain, both before (upstream) and after (downstream) direct operations.
The classification comes from the GHG Protocol, the global standard for measuring and reporting greenhouse gas emissions.
Which categories fall under scope 3?
The GHG Protocol distinguishes fifteen scope 3 categories, divided into upstream and downstream emissions. Common categories include:
- Purchased goods and services — often the largest category, including the production of materials and raw materials.
- Transport and distribution — upstream and downstream transport in the value chain.
- Employee commuting and business travel — travel by employees.
- Use of sold products — emissions during the customer use phase.
- End of life of products — processing and waste after use.
Why scope 3 is difficult and crucial
Scope 3 lies outside direct organisational control and depends on data from suppliers and customers. It is therefore the most difficult scope to measure, but also the most important one. Without scope 3, the largest part of the footprint remains invisible. A good baseline measurement maps scope 3 as completely as possible, so that reduction targets land in the right places.
Scope 3 and the CSRD
Under the CSRD and the related ESRS standards, scope 3 reporting is mandatory when those emissions are material. For most organisations, scope 3 is material. A substantiated scope 3 calculation is therefore relevant not only for climate goals, but also for compliance. See Baseline Compliance.
How New Economy maps scope 3
New Economy calculates scope 3 on a data-driven basis, using life-cycle assessments and value-chain data as substantiation. Within Baseline Footprint and Product Footprint, emissions are made visible by category and life-cycle phase, showing where the largest reduction opportunities are located.
Frequently asked questions about scope 3
Scope 1 covers direct emissions from owned or controlled sources. Scope 2 covers emissions from purchased energy. Scope 3 covers all other indirect emissions in the value chain, both upstream and downstream.
The GHG Protocol distinguishes fifteen scope 3 categories, divided into upstream categories such as procurement and transport, and downstream categories such as product use and end of life.
Most impact often sits outside direct operations: in the production of purchased materials and in the use of sold products. According to CDP, scope 3 is on average about three quarters of a footprint, and in many sectors 70 to 90 percent or more.
Under the CSRD, scope 3 reporting is mandatory when those emissions are material. For most organisations, that is the case.
Scope 3 measurement starts with a baseline that maps the value chain and identifies the largest categories. After that, targeted data collection and reduction goals can be developed.
For insight into the size of scope 3 emissions, see Baseline Footprint, Product Footprint or Contact.