Scope 3 Emissions: Best Practices for Businesses

Technician measuring emissions

Scope 3 is a series of mutually exclusive activity classes that are designed to seize emissions from business and client practices over which businesses have indirect control but can influence in some way. Businesses can participate in scope 3 reporting and management, although it is not a regulatory requirement. This post will explore this topic more.

Business practices regarding scope 3 emissions

Several companies are measuring and managing Scope 1 and 2 emissions (direct and indirect). However, Scope 3 emissions are harder to measure and manage. However, this is a challenge that companies should be willing to take. There are many reasons why this is the case. Firstly, customers want to support businesses that play a role in reducing emissions from greenhouses. Secondly, suppliers and other business stakeholders also seek for companies that they can partner with in helping reduce their carbon footprint by participating in practices like sustainable sourcing. Thirdly, Scope 3 Emissions measurement and management is important because companies need to comply with the ever-evolving regulations on climate disclosure.

Most importantly, coming up with a plan to measure, manage, and reduce emissions is essential for companies to build a positive brand reputation. By doing so, a company will be able to attract new clients, earn confidence from their investors, earn business deals with important vendors, and also get partnerships with businesses on similar journeys.

The best business practices for Scope Emissions management

There are many strategies that businesses can take to manage scope 3 emissions. Below are some of the key ones:

Become familiar with the GHG protocol

The GHG (Greenhouse Gas) protocol has set up global standard frameworks that issue guidance on measuring and managing greenhouse emissions across the value chain. The frameworks also help companies identify areas where they can potentially reduce emissions. Understanding the GHG protocol can help a business come up with strategies for scope 3 emissions management. However, it is worth mentioning that currently, the GHG protocol does not mandate scope 3 reporting. However, it does still encourage it strongly.

Scope 3 emissions assessment

Before anything else, companies also have to make an early assessment of scope 3 emissions. This applies to the emissions by the company and any upstream emissions generated by suppliers, partners, and other stakeholders. These are upstream and downstream emissions. Upstream emissions cover all emissions from partners of the company, including those from business travels, employee commissions, and more. This information will help a company understand the level of its indirect emissions and come up with the best strategies for management and reporting.

Other things that companies can do to come up with scope three emissions management strategies include:

  • Increasing an understanding of a company’s supplier data inputs
  • Working to eliminate all global complexities when it comes to the value chain
  • Seek buy-in from industry leaders across the initiative


Identifying, calculating, and analysing scope 3 emissions is not easy. However, it is a worthwhile practice. You should know that scope 3 emissions occur at varying degrees, depending on the company and its products or what it produces. Therefore, the practices may differ depending on the company in question. Regardless, a lot of effort has to be put into coming up with scope 3 emissions strategies. It all starts with gathering as much data and knowledge as possible.

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