Scope 3 emissions are indirect emissions from your supply chain—supplier operations, customer use of your products, waste disposal, and business travel. For many organisations, scope 3 dwarfs scope 1 and 2 (direct operations). A manufacturer with modest facility emissions might have scope 3 emissions 5-10 times larger due to suppliers and product use.
Net zero commitments increasingly require scope 3 reduction, yet tracking is complex because you don’t directly control supplier operations. The World Resources Institute reports that scope 3 represents average 75% of total organisational emissions, yet only 32% of organisations measure scope 3 emissions. The measurement gap creates blind spots in sustainability efforts.
Scope 3 Measurement Complexity
Scope 3 encompasses 15 categories: purchased goods/services, capital goods, fuel/energy-related emissions, upstream transport, waste, business travel, employee commuting, upstream leasing, downstream transport, processing of sold products, use of sold products, end-of-life treatment, downstream leasing, franchises, investments. Most organisations track only a few categories, typically missing their largest sources.
Measurement is difficult. You don’t directly monitor supplier operations. Suppliers may not report emissions data. You may not know product use patterns (how long customers use products, in what conditions). Estimation is necessary, and estimation accuracy is often poor.
Why Generic Scope 3 Reduction Targets Fail
“Reduce scope 3 emissions 50% by 2030″ is difficult to achieve without understanding which scope 3 sources drive highest impact. Generic measures—”work with suppliers to reduce emissions,” “shift to sustainable transportation,” “encourage product recycling”—are vague and ineffective.
Effective reduction requires identifying your top 3-5 scope 3 sources, measuring them with precision, and deploying targeted measures. A manufacturer whose primary scope 3 source is supplier energy consumption benefits from supplier energy audits and equipment upgrades. A company whose primary scope 3 source is product use (fuel for vehicles sold) benefits from product efficiency improvements. Without source clarity, reduction efforts are scattered.
Hampshire Hospitals’ scope 3 emissions analysis revealed that waste treatment and supply chain logistics combined represented 32% of total operational emissions, substantially more than previously estimated. By implementing supplier waste reduction programmes and consolidating logistics providers, they achieved 28% scope 3 emissions reduction within 18 months, exceeding their initial 15% target for that category.
Practical Scope 3 Measurement and Reduction
Scope 3 Source Identification: Which categories apply to your organisation? Which are highest-impact? Often 80% of scope 3 comes from 2-3 categories. Prioritise measurement of high-impact categories.
Supplier Engagement: Can suppliers provide emissions data? What transparency agreements can you establish? Can you access supplier facilities for direct measurement?
Data Collection Framework: How will scope 3 emissions be measured? Supplier reporting, industry estimates, direct measurement, hybrid? What precision level is achievable for each category?
Supplier Improvement Targets: Which suppliers contribute highest scope 3 emissions? What improvement targets have you established? What support (financing, technical assistance) can you provide?
FAQ: Scope 3 Emissions
Q: Do we have to measure all scope 3 categories?
A: No. GHG Protocol allows prioritisation. You should measure material sources (those significant to overall footprint). Categories contributing <1% of total can be excluded if clearly immaterial. Document which categories are included and excluded.
Q: What if suppliers won’t provide emissions data?
A: Use estimates based on industry data. Distinguish between measured and estimated—measured data is more credible. Supplier engagement and requests for data transparency are part of responsible scope 3 reporting.
Next Steps
Scope 3 emissions reduction requires transparent measurement and supplier collaboration. Without measurement, targets are intentions without accountability.
If your organisation needs scope 3 emissions measurement and reduction strategy, contact EMSOL to discuss transparent scope 3 tracking and supplier engagement for net zero goals.