When it comes to measuring greenhouse gas (GHG) emissions, businesses typically categorize them into three scopes: Scope 1, Scope 2, and Scope 3. Each of these scopes serves a purpose in understanding a company’s overall impact on the environment, but they vary significantly in terms of measurement complexity and the degree of control businesses have over them.
What Even Are Scope 3 Emissions?
Scope 3 emissions are indirect greenhouse gas (GHG) emissions that occur throughout a company’s value chain, both upstream (from suppliers) and downstream (from product use and disposal). Unlike Scope 1 (direct emissions from company-owned sources) and Scope 2 (indirect emissions from purchased electricity), Scope 3 covers emissions from activities that a company does not directly control.
Types of Scope 3 Emissions
Scope 3 includes 15 categories, such as:
- Upstream (supplier-related emissions): Purchased goods and services, business travel, employee commuting, transportation, and waste.
- Downstream (customer and product-related emissions): Use of sold products, end-of-life treatment, and investments.
Approximately 78% of a company’s total emissions come from Scope 3 sources, making it the largest but least reported category. Yet, without tackling Scope 3, any corporate net-zero commitment remains incomplete. So, that leads one to ask, if we know where they come from, then why are they so difficult to measure?
Why Are Scope 3 Emissions the Most Difficult to Measure?
- Complex Data Collection: Accurately measuring Scope 3 requires reliable, granular data from suppliers, logistics partners, and customers—yet most companies are forced to rely on proxy data, industry averages, and estimates.
- The Fractured Nature of Global Supply Chains: Unlike direct (Scope 1) or energy-related (Scope 2) emissions, Scope 3 emissions are deeply embedded in vast, interconnected global supply chains. Companies rely on hundreds or even thousands of suppliers, each with varying levels of transparency, reporting standards, and regulatory oversight.
- Consumer Behaviour and End-of-Life Impact: Scope 3 emissions extend beyond production, influenced by how products are used and disposed of.
- Financial Disincentives and the Cost of Transparency: Measuring Scope 3 emissions poses financial and strategic challenges.
So How Can We Reduce Scope 3 Emissions- Solutions Anyone?
To tackle Scope 3 emissions, companies are adopting several strategies:
-
Supplier Collaboration: Businesses work closely with suppliers to track emissions and set reduction targets, ensuring alignment across the supply chain.
-
Advanced Data Tools: Companies use carbon accounting software and tools like CDP to improve accuracy in measuring Scope 3 emissions.
-
Decarbonizing the Supply Chain: Many companies are pushing suppliers toward renewable energy and sustainable practices to reduce emissions at the source.
-
Circular Economy: Focusing on recycling, reuse, and repair, companies are extending product lifecycles and minimizing waste.
-
Consumer Engagement: Brands educate customers on making sustainable choices to reduce emissions during product use and disposal.
-
Carbon Offsetting: Some businesses invest in offset projects, like reforestation, to balance out emissions they cannot eliminate.
The Nitty Gritty: Breaking It Down
- Complex Data Collection: Accurately measuring Scope 3 requires reliable, granular data from suppliers, logistics partners, and customers—yet most companies are forced to rely on proxy data, industry averages, and estimates.
- Lack of primary data: Many suppliers don’t measure their emissions, leaving companies to estimate impact using generic industry figures.
- Aggregation challenges: Different suppliers use different carbon accounting methodologies, making it difficult to standardise and compare data.
- Inability to verify accuracy: Even when suppliers report emissions, companies often lack auditing mechanisms to confirm the data’s reliability.
- The Fractured Nature of Global Supply Chains: Unlike direct (Scope 1) or energy-related (Scope 2) emissions, Scope 3 emissions are deeply embedded in vast, interconnected global supply chains. Companies rely on hundreds or even thousands of suppliers, each with varying levels of transparency, reporting standards, and regulatory oversight.
- Multi-tier opacity – Most businesses only see first-tier suppliers, while significant emissions originate further upstream (e.g., raw material extraction, manufacturing).
- Uneven reporting standards – Smaller suppliers, especially in developing regions, often lack the resources or expertise to measure emissions accurately.
- Regulatory fragmentation – Varying sustainability regulations across markets create data inconsistencies and reporting gaps.
- Consumer Behaviour and End-of-Life Impact: Scope 3 emissions extend beyond production, influenced by how products are used and disposed of.
- Usage variability – A product’s carbon footprint depends on user behaviour (e.g., an EV’s emissions vary based on energy source).
- End-of-life uncertainties – Companies have little control over whether products are recycled, landfilled, or repurposed.
- Circular economy challenges – Inconsistent global waste management systems make it difficult to quantify emissions reductions from reuse and recycling.
- Financial Disincentives and the Cost of Transparency: Measuring Scope 3 emissions poses financial and strategic challenges.
- Costly data collection – Detailed emissions tracking requires investment in reporting tools, audits, and sustainability teams, which smaller companies may struggle to afford.
- Potential reputational risk – Transparency can reveal higher-than-expected emissions, prompting difficult conversations with investors, customers, and regulators.
- Supply chain resistance – Many suppliers view emissions reporting as an administrative burden and may withhold data to avoid compliance costs or competitive risks.
Put It Into Practice: Apple and Scope 3 Emissions
Apple’s Scope 3 emissions account for the vast majority of its total carbon footprint, primarily from:
- Supply Chain (Purchased Goods & Services) – Emissions from the manufacturing of iPhones, MacBooks, and other products, mostly by suppliers.
- Product Use – The electricity consumed when customers charge and use Apple devices over their lifetime.
How Apple Tackles Scope 3
Supplier Decarbonization – Apple has committed to making its entire supply chain carbon neutral by 2030, pushing suppliers to use renewable energy.
Efficient Products – Devices are designed to be more energy-efficient, reducing lifetime emissions.
Recycling & Circular Economy – Apple promotes recycled materials and programs like Apple Trade-In to minimise waste.
Key Takeaway: While Apple has begun to reduce its direct (Scope 1 & 2) emissions, Scope 3 remains the biggest challenge due to dependence on global suppliers and consumer behaviour.
The Bottom Line: A Business and Climate Imperative
As regulations tighten and consumers demand accountability, ignoring Scope 3 is no longer an option. Companies investing in transparent supply chains, better data, and collaborative solutions will lead in the low-carbon economy. By tackling Scope 3, businesses don’t just reduce emissions—they drive resilience, innovation, and long-term value.
Sources:
https://climateactionnavigator.oliverwymanforum.com/scope-3-emissions
https://ghgprotocol.org/sites/default/files/standards/ghg-protocol-revised.pdf
https://www.eesi.org/papers/view/fact-sheet-the-growth-in-greenhouse-gas-emissions-from-commercial-aviationhttps://www.cdp.net/en/investor/ghg-emissions-dataset
https://ghgprotocol.org/sites/default/files/standards_supporting/FAQ.pdf
