Scope 3 Emissions: The Invisible Carbon You cannot Ignore

Written by: Energy Guardians

Last Updated: July 5, 2025

If climate goals were a game of hide-and-seek, Scope 3 emissions would be the champion. They are vast, slippery, and often overlooked, but they make up the bulk of most organisations’ carbon footprint.

Ignoring Scope 3 is not just risky, it is outdated. As pressure mounts for transparency and climate credibility, real sustainability means owning your full impact and not just the bits within your walls.

What Are Scope 3 Emissions?

In carbon accounting, emissions are grouped into three scopes:

• Scope 1: Direct emissions from owned operations (e.g., fuel burned on-site)

• Scope 2: Indirect emissions from purchased energy (e.g., electricity)

• Scope 3: All other indirect emissions across your value chain; from raw materials to customer use and disposal

Scope 3 includes:

• Business travel and employee commuting

• Purchased goods and services

• Waste and water treatment

• Transportation and distribution

• Use of sold products

• Investments and leased assets

For most companies, Scope 3 accounts for 70–90% of their total emissions. Yet it is also the least measured and least managed.

Why Accountability for Scope 3 Matters

1. You cannot manage what you do not Measure

Without understanding Scope 3, your net zero plan is missing most of the emissions picture. It is like trying to balance your finances but ignoring your biggest expenses.

2. Your stakeholders are watching

Investors, regulators, and customers are no longer satisfied with half the story. ESG ratings, green finance, and supply chain audits increasingly demand full carbon visibility, including Scope 3.

3. It Builds Real Climate Credibility

Greenwashing thrives in the shadows. Scope 3 disclosure is a light switch. It signals that you are not just offsetting emissions, you are transforming systems.

How to Tackle Scope 3 Emissions

1. Map Your Value Chain

Start with a materiality assessment. Where do the biggest emissions lie? For some, it is upstream in purchased goods. For others, it is downstream in product use.

2. Engage Your Suppliers

You cannot cut what you do not control, but you can influence. Work with suppliers to collect data, improve transparency, and co-develop low-carbon solutions.

3. Improve Data, Step by Step

Do not wait for perfect information. Start with spend-based estimates. Refine over time with activity data and supplier disclosures.

4. Integrate Scope 3 Into Strategy

Make emissions data part of procurement, product design, and investment decisions. Climate risk should shape how you buy, build, and sell.

5. Report openly, Act continuously

Use credible standards like the GHG Protocol, CDP, or SBTi to report your Scope 3 emissions. But do not stop there; set targets, track progress, and share what is working.

The Shift from Excuses to Action

Scope 3 used to be seen as 'too hard to measure.' But that is changing very fast. Today, tools, data platforms, and consultancy support make Scope 3 manageable, even for mid-sized organisations.

And soon? It will not be optional. The EU’s CSRD, the UK’s PPN 06/21, and investor-led frameworks like TCFD are setting a new norm: full carbon accountability.

The Bigger Picture

Accounting for Scope 3 is not just about climate math. It is about systems thinking.

It means recognising that your operations are part of a bigger network; that your emissions do not end at your door. That sustainability is collective, not siloed.

By stepping up to Scope 3, you are not just reporting. You are reshaping how your organisation relates to the world around it.

Final Word

In a carbon-conscious future, Scope 3 is the new frontline. And those who embrace it now will not just comply; they will lead.

So the question is not whether Scope 3 matters. It is whether you are ready to own it.