What is Scope 3 Emissions?
All other indirect emissions occurring in an organisation's value chain, both upstream and downstream. Scope 3 typically represents 70-90% of a company's total carbon footprint and includes emissions from suppliers, business travel, employee commuting, and product use.
Why it matters
Scope 3 is where the majority of emissions sit for most businesses, yet it is often the least understood. Large corporates and public-sector buyers increasingly require Scope 3 data from their suppliers, making it a commercial necessity for SMEs in competitive supply chains.
Example
A UK clothing brand finds that 92% of its 4,500 tCO₂e footprint comes from Scope 3, primarily purchased fabrics from overseas mills. This data informs a decision to trial organic cotton from a lower-carbon supplier.
Related terms
Value Chain
The full range of activities needed to create a product or service, from raw material extraction through production, delivery, use, and end-of-life disposal. Understanding your value chain is essential for accurate Scope 3 emissions reporting.
Upstream Emissions
Scope 3 emissions that occur in the supply chain before a product or service reaches an organisation. This includes emissions from purchased goods and services, capital goods, fuel and energy activities, transportation, waste, business travel, and employee commuting.
Downstream Emissions
Scope 3 emissions that occur after a product or service leaves an organisation. This includes transportation and distribution, processing of sold products, use of sold products, end-of-life treatment, leased assets, franchises, and investments.
Put your knowledge into practice
Start measuring your carbon footprint with EcoHedge. Connect your accounting software and get your first carbon report in hours.