Scope 3 calculation:

For many companies, Greenhouse Gas (GHG) emissions can occur in the value chain rather than in direct operations or purchased energy. Scope 3 calculation and reporting quantifies these upstream and downstream emissions and allows you to gain insight into the climate impact of your value chain. This can then be used as a basis for target setting and decision making.

Scope 3 includes activities such as purchased goods and services, transportation and distribution, product use, waste disposal, and employee commuting. In total, there are 15 mutually exclusive categories (see figure below) of Scope 3 emissions which are defined in the GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard (also referred to as the Scope 3 Standard). This Scope 3 standard provides requirements and guidance for companies to calculate and publicly report a GHG emissions inventory for their Scope 3.

Scope 1, 2 and 3 emissions adapted from the GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard.

Scope 3 calculation and reporting can be a valuable tool for companies that want to understand the carbon footprint of their entire value chain, rather than just their direct emissions.

Scope 3 calculation and reporting helps companies to:

• Strengthen data management: Set up effective data management systems for collecting, structuring and maintaining GHG data.

• Set and track targets: Develop a baseline for setting and tracking emission reduction targets over time.

• Identify hotspots and reduction opportunities: Identify emissions hotspots and opportunities to reduce emissions. Reducing emissions and improving sustainability performance can result in cost savings, added value and improved reputation.

• Engage the value chain: Build stronger relationships and promote sustainability throughout the value chain by working closely with upstream suppliers and downstream stakeholders.

• Meet reporting and regulatory expectations: Meet regulatory requirements and stay ahead of emerging sustainability trends, reporting frameworks and best practices.

The process of calculating Scope 3 emissions involves several steps:

Scope 3 inventories are typically updated on an annual basis, aligned with the company’s reporting cycle. Each update is an opportunity to refine data, expand coverage and adjust methods where needed. This approach allows companies to gradually increase the robustness of their Scope 3 reporting while keeping the process manageable.

At Ecomatters, we help companies calculate and report on their Scope 3 emissions. We support with the development of GHG inventories, data collection, the implementation and tracking of GHG reduction initiatives, as well as the development of GHG accounting and auditing systems to ensure accuracy and reliability. With over 10 years of experience we understand that every business is different. Therefore we strive to provide tailored solutions that meet the individual needs of our clients.

Due to complex reporting requirements and dependence on external data, Scope 3 calculation is often more challenging than Scope 1 and 2 reporting. Contact us to learn how we can support you.