What are Scope 3 Greenhouse Gas (GHG) emissions?
Scope 3 Greenhouse Gas (GHG) emissions
Introduction
Scope 3 Greenhouse Gas (GHG) emissions are all indirect emissions that occur in the value chain of the reporting company; including both upstream (production, processing, and transportation) and downstream (distribution and storage, use of product) emissions. Additional information about the various Scopes of emissions can be found on the Greenhouse Gas Protocol’s website here.
Figure: From GHG-Protocol’s “Corporate Value Chain (Scope 3) Accounting and Reporting Standard” Corporate Value Chain Accounting and Reporting Standard
Value chain, or “Scope 3”, emissions are often the largest source of corporate carbon footprints, yet to-date they have been the lowest area of focus for most companies. Many have not yet taken direct action due several barriers, ranging from:
- Uncertainty about who is responsible for these indirect emissions
- Limited access to supplier emissions data
- Lack of guidance on how to account for reductions from investments in supply chains
- Inadequate recognition, and thereby reduced incentives, to invest in meaningful change beyond direct operations
Where can I find more information on accounting and reporting for interventions my company is undertaking in our value chain (Scope 3) GHG emissions?
Gold Standard’s Value Change program is currently working with major corporations in the agri-food and apparel sectors – as well as strategic partners (GHG Protocol, WWF and CDP) – to define guidance to streamline accounting for interventions to reduce and remove GHG emissions in line with corporate reporting and Science-based Targets. The draft Value Chain Interventions Guidance enables reporting on emissions reductions toward corporate performance targets within Category 1: Purchased Goods and Services, in line with common accounting frameworks like the Greenhouse Gas (GHG) Protocol. The guidance is available here.
If you have more questions on how to apply this guidance or to launch a pilot with the Gold Standard and SustainCERT, please contact help@sustain-cert.com
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