Understanding Scope 3 indirect emissions

What are Scope 3 emissions?

Scope 3, or ‘indirect emissions’, are those that are not directly caused by your organisation but instead you are indirectly causing or influencing those emissions from another organisation, commonly in your supply chain.

Common examples of Scope 3 emissions

Business travel, employee commutes, waste, purchased goods and services, the goods you produce, end-of-life disposal of your products, transportation and distribution of goods/ services.

But there are so many - what Scope 3 emissions do I include?

To align with the most recent global Greenhouse Gas Reporting standards, an organisation must endeavour to include in its footprint all significant Scope 3 emission sources. The definition of ‘significant’ Scope 3 is commonly anything above 2 -3% of your total footprint, and certainly include if it is 5% or more.

Where do I start?

It is common for organisations to first start with emission sources such as waste, travel and freight - as they are often significant and should either have data available or can be modelled.

Remember how your Reduction Target will fit into your Scope 3 reporting

When setting an Emissions Reduction Target, best practice generally sees companies adopt a two-target approach: an absolute Scope 1 and 2 emission reduction e.g. 42% by 2030; and a separate Scope 3 emissions reduction target.

There is more variation seen with Scope 3 emissions targets. This acknowledges the fact that some emissions are particularly difficult to reduce, and that companies are reliant on other parties (their suppliers) to act as well.

Wherever possible, companies should seek to reduce any emissions that they can exert a reasonable degree of influence over.