Scope 3 Emissions
Addressing climate change has become a critical part of business management, as companies respond to the wide variety of physical, transitional, and reputational risks caused by climate change - in addition to meeting stakeholder expectations that businesses play a significant role in mitigation. Fortunately, the market is shifting in a way that rewards those who understand the risks and opportunities and are willing to innovate and show leadership to adapt to a low-carbon economy.
As climate change accelerates, businesses will face more frequent disruptions to operations and supply chains, whilst at the same time needing to respond to increasing regulatory compliance and demand from stakeholders. Businesses that proactively respond to the risks and opportunities of climate change will be in a greater position to attract and retain talent, build customer loyalty, future-proof their business models, and secure investment.
Effective climate action begins with understanding business emissions from direct operations and supply chains and taking steps to mitigate these impacts through best practice target setting and transition planning. The UN Global Compact Network UK offers programming to help businesses understand the basics of corporate climate action, from the complexities of value chain emissions, to setting targets with the Science Based Targets Initiative, and developing business models that prioritise climate action through impactful Transition Plans.
The Greenhouse Gas Protocol Corporate Standard classifies a company's GHG emissions into three 'scopes':
- Scope 1 emissions: direct emissions from owned or controlled sources.
- Scope 2 emissions: indirect emissions from the generation of purchased energy.
- Scope 3 emissions: all indirect emissions (not included in Scope 2) that occur in the value chain of the reporting company, including both upstream and downstream emissions.
As Scope 3 emissions usually account for more than 70 per cent of a business’s carbon footprint, it is crucial that companies tackle Scope 3 emissions to meet stakeholder expectations for meaningful climate action.
There are numerous benefits associated with measuring and reducing Scope 3 emissions. By measuring Scope 3 emissions, organisations can:
- assess where the emission hotspots are in their value chain;
- identify resource and energy risks in their supply chain;
- identify which suppliers are leaders and which are laggards in terms of their sustainability performance;
- identify energy efficiency and cost reduction opportunities in their value chain;
- engage suppliers and assist them to implement sustainability initiatives;
- improve the energy efficiency of their products; and
- positively engage with employees to reduce emissions from business travel and employee commuting.
Many companies now recognise the value of addressing Scope 3 emissions to achieve their sustainability commitments. Yet, challenges around measurement and reduction are still causing a distinct lack of progress in comparison to operational emissions.
Please contact Alexandra Ranft, Climate Lead for further information.
2025 Webinar Series: Elevating Scope 3 Strategy
Overview
Scope 3 emissions is facing considerable attention from policymakers, standard setters, customers, and the financial sector as they seek to promote greater accuracy, transparency, and progress among businesses and their approach to value chain emissions. This is reflected in the rise of net-zero-aligned policies, updated guidance on target setting, and increasing expectations from investors.
Retaining competitiveness and resilience in the face of these changes will demand that companies accelerate their progress by recognising Scope 3 as a source of business intelligence and value creation. This webinar series aimed to help companies of all sizes elevate their Scope 3 strategy by aligning on the latest and most effective measurement techniques, incorporating Scope 3 into business strategy, and ultimately adapting business models to realise a decarbonised value chain.
This series helped participants:
- Understand how they can respond to the growing regulatory pressures, target-setting guidance, disclosure requirements, and investor expectations around Scope 3;
- Build confidence in understanding their Scope 3 footprint through aligning with emerging best practices in emissions accounting;
- Build the confidence and capacity needed to set and validate Scope 3 targets;
- Understand how to leverage Scope 3 insights for business model adaptations and transformations, including addressing emissions through the lens of circularity, nature, and climate risk.
Past Sessions
Past Speakers:
Maria del Mar Rojas
Europe Engagement Manager
SBTi
Sonya Bhonsle
Global Head of Value Chains and Regional Director Corporations
CDP
Andres Casallas
Managing Climate Accounting & Standards
WBCSD
Félix Fouret
Sustainable Investment Research Lead
London Stock Exchange Group
George Sandilands
Vice President Carbon Accounting
Sage
Namma Avni- Kadosh
Director of PACT
(WBCSD)
Felix Prettejohn
Associate Director
The Carbon Trust
Martin Smith
Founder
Global Footprinting System (Imperial College London)
Riara Woodley
Managing Consultant Supply Chain Decarbonisation
ERM
Lindsey Rowe
Head of Strategic Programmes & Sustainability GTM / AI Incubation
SAP
Chris Low
Head of Sustainable Procurement & Packaging
Haleon
Frederike Kress
ESG Officer
PAI Partners
Charmaine Che
Associate Director
103 Ventures
Matt Manning
Head of Sustainability
BT Group
Ian Knight
Global Sustainability Senior Manager
Mars
Maximilian Schnippering
Head of Sustainability
Siemens Gamesa
2024 Webinar Series: Collecting Scope 3 Data
For many businesses, measuring, reducing, and reporting on the organisation’s Scope 3 emissions is the most challenging aspect of achieving a science-based net zero target. Collecting robust and accurate data can be difficult, yet it is a critical process to understand the company’s true impact on the climate, present trustworthy information to customers, investors, and suppliers, and back-up net zero claims and targets.
The UN Global Compact Network UK hosted a four-part webinar series to support businesses to efficiently collect Scope 3 emissions data from across their value chain. This series explored how companies could collect Scope 3 data using a variety of tools, surveys, and software and featured case studies and insight from businesses on good practice in this area.
2024 Past Sessions
2022 Webinar Series: Reducing Scope 3 Emissions
In 2022, the UN Global Compact Network UK hosted a series of nine webinars exploring how companies can tackle each category of Scope 3 emissions as defined by the GHG Protocol. Participants heard from climate specialists and business leaders as they shared best practices for identifying, measuring, and reducing their Scope 3 emissions.
2022 Past Sessions
Special thanks to:
