» Resources » What are scope 3 emissions and why do they matter? Glossary What are scope 3 emissions and why do they matter? What are scope 3 emissions? In order for organisations to reach their net zero targets, a carbon strategy should be at the forefront of their minds. As part of that carbon strategy, it’s crucial that organisations, both SMEs and global conglomerates, are accurately measuring and managing their carbon emissions. For organisations to be able to measure their carbon footprint, they need to be able to calculate the greenhouse gas emissions that they’re responsible for. To do this, organisations must collect their operational data and use official multipliers (known as conversion factors) to translate those into carbon emissions. There are three different types of carbon emissions: scope 1, 2 and 3. Scope 1 are defined ‘direct emissions’ that you have produced from your own controlled sources, i.e. vehicle emissions from your organisation’s vehicle fleet. Scope 2 are defined as ‘indirect emissions’ from the consumption of electricity, steam, heating and cooling. Scope 3 emissions are all other indirect emissions. This can range from the carbon embodied in the materials you purchase through to emissions associated with the processing of the waste you have generated. For most organisations, these will be the largest contributor to their footprint. Why do they matter? They are incredibly important as for most organisations, in particular larger organisations of over 250 employees, they will count for the majority of the greenhouse gas emissions they emit. For organisations to effectively reduce their carbon footprint and achieve their net zero targets by either 2030 or 2050, reducing scope 3 emissions is crucial. Depending on where you sit in the supply chain, they can account for between 80-99% of your overall emissions. This means it’s crucial to be able to accurately measure your scope 3 emissions as they’ll be responsible for the majority of your organisation’s entire carbon footprint. This also means that as long as they’re measured accurately, you’ll be able to identify carbon hotspots within your supply chain and create action plans to reduce these emissions. Discover our carbon & climate change consultancy services. Billy Wilkinson Growth Marketing Manager Aug 30, 2024 Share: Related Articles April 2025 Blog Getting Started with Social Value: What It Is and Why It Matters Sam Walker April 2025 Blog Getting Started with Social Value: What It Is and Why It Matters In recent years, Social Value has emerged as a significant element within the framework of sustainable development, particularly in the context of public procurement. But whilst some organisations may be confident in their understanding and delivery of Social Value, many organisations – in particular SMEs – are being introduced to the concept for the first […] Keagan Allin April 2025 Modern Slavery & Human Rights The EU’s Omnibus Package: What’s Changing in CSRD and CSDDD Action Sustainability Staff April 2025 Modern Slavery & Human Rights The EU’s Omnibus Package: What’s Changing in CSRD and CSDDD In 2021 and 2022, the European Union introduced two groundbreaking sustainability laws: the Corporate Sustainability Due Diligence Directive (CSDDD) and the Corporate Sustainability Reporting Directive (CSRD). Now, more than three years later and with implementation just around the corner, the European Commission has put forward an ‘Omnibus Simplification Package’. This new proposal aims to ease […] Keagan Allin March 2025 COâ‚‚ Performance Ladder Comparing the Science-Based Targets Initiative (SBTi) with the CO2 Performance Ladder Action Sustainability Staff March 2025 COâ‚‚ Performance Ladder Comparing the Science-Based Targets Initiative (SBTi) with the CO2 Performance Ladder The Science-Based Targets initiative (SBTi) and the CO2 Performance Ladder (the Ladder) are two powerful tools for organisations aiming to address climate change and reduce carbon emissions. While both share common goals, they differ in approach, scope, and application. This article provides a comprehensive comparison to help organisations understand their similarities, differences, and potential complementarities. […] Keagan Allin