What is an example of a scope three carbon emission?

License and Republishing World Economic Forum articles may be republished in accordance with the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International Public License, and in accordance with our Terms of Use. The views expressed in this article are those of the author alone and not the World Economic Forum.

In our previous newsletter , we conducted an in-depth analysis on the broad spectrum of emissions, while in our forthcoming editions, we will place an exclusive focus on Scope 3 emissions. Scope 3 emissions embody the majority of carbon emissions prevalent in the value chain. They are specifically derived from emissions produced outside the boundaries of the reporting entity and effectively represent Scope 1 and 2 emissions from the remaining organizations within the value chain. If your interest lies in understanding the contributing elements of Scope 3 emissions, the methodology for their What are Scope 3 emissions? Scope 3 emissions encapsulate both upstream and downstream indirect emissions present throughout the value chain, stemming from the assets of a reporting company, which are not directly owned or controlled by the said company. Essentially, the Scope 3 emissions of a reporting organization can be classified as the Scope 1 and 2 emissions of a different organization. These emissions entail the production and transportation of purchased products as well as the utilization of sold products. To illustrate this further, let's delve into some examples of Scope 3 emissions. Scope 3 emissions form the most substantial share of emissions within the value chain, with the Greenhouse Gas Protocol (GHGP) outlining 15 distinct categories of Scope 3 emissions. The range of these emissions spans the entire value chain and includes procurement, business travel, waste managemen...

This article is sponsored by Like so many companies, you’re likely working hard to reduce greenhouse gas (GHG) emissions while also reporting your progress. It’s a big effort, assessing energy use across your operations: offices, factories, warehouses and fleets. Even so, it’s only a start. The real work — and business advantages — come when focusing on Scope 3 emissions generated beyond your company’s walls. Because these emissions are mostly carbon, they’re often referred to as carbon emissions and arise from activities in your wider value chain. Material Scope 3 impacts will vary by industry and business model, but for many companies, a large amount of emissions occur upstream via suppliers and raw materials. While reporting on Scope 3 isn’t yet a U.S. mandate (but could be later this year should the current version of the Why you need a Scope 3 strategy now Developing a Scope 3 strategy starts with understanding the implications for your specific business. You’ll then move on to measuring and managing those emissions, working closely with suppliers and customers. Many companies have begun to set specific targets on Scope 3, with the more advanced companies setting science-based ones. When you approach Scope 3 systematically and strategically, you not only can progress on commitments but can also reap significant benefits such as growing your market share. As with most environmental, social, and governance (ESG) areas, Scope 3 requires the attention of the full leadersh...

Many companies are implementing their own sustainability goals to comply with standards, meet environmental, social and governance (ESG) goals, and find areas of improvement for efficiency. Before you can build a strategy to reduce your company’s greenhouse gas (GHG) emissions, you must assess your current carbon footprint. The In this second installment of our sustainability series, we explain the three scopes of emissions and explore a few key tactics that can be used to reduce them. (For a primer on greenhouse gases, make sure to read the Three Scopes of Carbon Emissions Your company’s greenhouse gas emissions can be categorized into three scopes, as defined by the GHG Protocol. This allows you to measure your emissions and think strategically about how to reduce them more effectively. Scope 1 emissions are direct emissions from sources owned or controlled by a company, such as onsite generation, natural gas use, and fleet fuel consumption. In other words, these emissions are a direct result of a company’s activities. Because of this, scope 1 emissions are generally considered the easiest for a company to control and reduce. Scope 1 emissions can be broken down into four categories: • Stationary combustion: This includes emissions that come from the combustion of fossil fuels, like a boiler that heats a building. Other fuels that may be included in these activities include natural gas, liquified petroleum gas, oil and propane. • Mobile combustion: This category covers t...

If you’ve been keeping up with our Trust Geek Glossary, you may feel like you’re becoming an expert on • What’s the GHG Protocol? How’s it related to scope emissions? • What’s the GHG Protocol Corporate Standard? • Why is the GHG Protocol important for companies? What are the benefits? • What are Scope 1 2 and 3 emissions? What are direct vs indirect emissions? • (Direct) Scope 1 emissions • (Indirect) Scope 2 emissions • (Indirect) Scope 3 emissions • Who uses the GHG Protocol? • How does GHG Protocol reporting work? • How can OneTrust help? The Greenhouse Gas Protocol (GHG Protocol) is a The first GHG Protocol Corporate Standard was published in 2001 to provide a global framework and guidance to companies on how to calculate and report on their GHG emissions. The standard covers the accounting and reporting of seven GHGs covered by the Kyoto Protocol – carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PCFs), sulphur hexafluoride (SF6) and nitrogen trifluoride (NF3). It defines clear requirements for data collection, as well as what the content and structure of corporate carbon reports should look like. GHG emissions are classified into three categories for accounting and reporting purposes: Scope 1 (direct), Scope 2 (indirect from purchased energy), and Scope 3 (indirect other). This is to help ensure that companies won’t double count emissions in the same scope. By leveraging a standardized approach based on best prac...

Climate action concerns us all. There is broad consensus on this both in the scientific community and across the world. Businesses in particular are seen as playing a key role in climate action. More and more companies of different sizes and from different sectors are becoming increasingly aware of this responsibility. They recognise that they must drive the The basis for a corporate climate action strategy is the calculation of a company’s greenhouse gas (GHG) emissions and an accurate understanding of the different emission sources. This can present a challenge for companies of all sizes, but it is a crucial step in setting and achieving This guide explains how to identify a company’s major emission sources, correctly delineate them, and categorise them into scope 1, scope 2, and scope 3 emissions. The international community has long recognised the necessity of reducing emissions to prevent further global warming. With the Greenhouse gases refer to the different types of gases that trap heat in the atmosphere. By absorbing the sun’s energy and slowing the rate at which the energy escapes to space, GHGs act like a blanket insulating the Earth. This effect is called the greenhouse effect. The greenhouse effect is a natural phenomenon; without it there would be no life on Earth. This is because it stores heat in the atmosphere and prevents the planet from freezing. However, over generations, humans have disrupted the balance of the greenhouse effect. According to the There...