what is scope 3

Scope 3 emissions refer to all indirect greenhouse gas (GHG) emissions that occur in the value chain of an organization, including both upstream and downstream emissions. These 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. In other words, they include all other indirect emissions that occur in the upstream and downstream activities of an organization. Scope 3 emissions are often the majority of an organizations total GHG emissions and can have a significant impact on its overall carbon footprint. Measuring and managing Scope 3 emissions is important for organizations as it can help advance their decarbonization and sustainability efforts, identify reduction opportunities, and engage with suppliers and customers to reduce emissions across the value chain.