Introduction
Greenhouse gas (GHG) emissions play a pivotal role in discussions surrounding climate change and corporate sustainability. To facilitate standardized measurement and reporting, the Greenhouse Gas Protocol classifies emissions into three distinct scopes: Scope 1, which encompasses direct emissions from owned or controlled sources; Scope 2, which includes indirect emissions from purchased electricity, steam, heating and cooling; and Scope 3, which comprises all other indirect emissions occurring across a company’s value chain. Among these, Scope 3 emissions represent the most intricate and extensive category, as they encompass emissions not directly owned or controlled by the reporting entity yet significantly contribute to an organization’s overall carbon footprint.
Scope 3 emissions often constitute the largest share of an organization’s total emissions, covering a broad spectrum of upstream and downstream activities, including supply chain operations, business travel, product utilization and waste management. Given their indirect nature, accurately quantifying and effectively mitigating Scope 3 emissions present substantial challenges, necessitating industry-wide collaboration and the adoption of sustainable business strategies. Nevertheless, addressing Scope 3 emissions is imperative for organizations striving to achieve net-zero targets and strengthen their corporate social responsibility (CSR) initiatives.
Learning Objectives
- To understand the complexity and significance of Scope 3 emissions.
- To study Challenges in Measuring Scope 3 Emissions
- To understand the Role of Technology in Tracking Scope 3 Emissions – AI, Blockchain, and Carbon Accounting Software
