What are Scope 3 emissions?
Scope 3 emissions are indirect carbon emissions that occur across a company’s value chain.
Unlike Scope 1 and Scope 2 emissions, which come from direct operations and purchased energy, Scope 3 emissions include activities such as supplier operations, employee commuting, business travel and product distribution.
For many organisations, Scope 3 emissions make up the largest proportion of their overall carbon footprint.
Why Scope 3 emissions are often overlooked
Many businesses delay addressing Scope 3 emissions because they are perceived as too complex and difficult to measure.
Unlike direct emissions, Scope 3 involves data from external sources such as suppliers, logistics providers and partners.
Common challenges include:
- Limited access to supplier data
- Lack of internal resource or expertise
- Uncertainty about where to start
- Concerns about cost and time
However, avoiding Scope 3 emissions can create gaps in your sustainability strategy, particularly when developing a Carbon Reduction Plan or preparing for procurement requirements.
Understanding Scope 3 emissions in your business
Scope 3 emissions cover a wide range of activities. These can include:
- Purchased goods and services
- Business travel
- Employee commuting
- Waste generated in operations
- Transportation and distribution
- Use of sold products
The relevance of each category depends on your industry and business model.
For some organisations, supplier emissions will be the largest contributor, while others may see higher emissions from travel or logistics.
How to start measuring Scope 3 emissions
The key to tackling Scope 3 emissions is to break the process into manageable steps.
A practical starting point is to focus on areas that are easiest to measure and influence.
Step 1: Start with accessible data
Begin with emissions you can measure internally, such as business travel and employee commuting. This data is often available through expense systems, HR records or travel bookings.
Step 2: Prioritise high-impact areas
Identify which Scope 3 categories are likely to have the biggest impact on your overall footprint. This allows you to focus your efforts where they will deliver the most value.
Step 3: Engage suppliers
Work with key suppliers to understand their emissions and encourage more sustainable practices. This is often the most complex part, but also the most important.
Step 4: Build a structured approach
Use your data to inform a Carbon Reduction Plan, ensuring Scope 3 emissions are included as part of your wider sustainability strategy.
Why Scope 3 matters for Net Zero and procurement
Scope 3 emissions are becoming increasingly important in both regulatory and commercial environments.
Many organisations are now expected to:
- Include Scope 3 in their carbon reporting
- Demonstrate reductions as part of a Carbon Reduction Plan
- Show a clear pathway to Net Zero
This is particularly relevant for businesses bidding for contracts, where sustainability is often part of the evaluation process.
A structured Net Zero strategy should therefore include Scope 3 emissions as a core component.
The role of a Carbon Audit
Before tackling Scope 3 in detail, businesses should first establish a clear emissions baseline.
A Carbon Audit helps to:
- identify all emission sources
- quantify Scope 1, 2 and 3 emissions
- highlight priority areas for reduction
This provides the foundation for a more targeted and effective approach.
Taking a practical approach
Scope 3 emissions do not need to be addressed all at once.
A phased approach allows businesses to build knowledge, improve data quality and expand their efforts over time.
By starting with manageable areas and developing a structured plan, organisations can make meaningful progress without becoming overwhelmed.
Need help measuring and reducing Scope 3 emissions?
If your business is looking to better understand its carbon footprint and develop a clear strategy, support is available.
From Carbon Audits through to Carbon Reduction Plans and Net Zero consultancy, a structured approach can help you manage Scope 3 emissions and meet your sustainability goals.
Frequently Asked Questions
Are Scope 3 emissions mandatory to report?
This depends on the reporting framework, but many organisations are now expected to include Scope 3 emissions as part of their overall carbon reporting.
Why are Scope 3 emissions so high?
They often include supply chain and operational activities outside direct control, which can significantly increase total emissions.
Can small businesses measure Scope 3 emissions?
Yes. Starting with simple areas such as travel and supplier data allows smaller organisations to begin building a clear picture over time.
Start Building Your Scope 3 Strategy
A structured approach to Scope 3 emissions can help your business improve reporting, support procurement requirements and make measurable progress towards Net Zero.