April 10, 2022
Scope 3 emissions cover most of the carbon emissions in the value chain, resulting from emissions that happen outside of the reporting company's walls and are the scopes 1 and 2 of the other organizations in the value chain. If you want to know the scope 3 emission contributing factors, how to measure them, and how to reduce them, then this is for you.
Scope 3 emissions cover upstream and downstream indirect emissions throughout the value chain from the result of assets from a reporting company but not owned or controlled by them. The scope 3 emissions of a reporting organization are the scope 1 and 2 emissions of another organization. This includes the production of purchased products and the transportation of them, and the use of sold products.
Scope 3 emissions are the largest proportion of emissions in the value chain and there are 15 categories of scope 3 emissions according to the Greenhouse Gas Protocol (GHGP). These can be anything from the value chain including procurement, business travel, waste, water, end of life treatment of sold products, franchises, investments, leased assets, use and processing of sold products, purchased goods and services, transportation of goods, capital goods, fuel and energy-related activities, and commuting.
Greenhouse gas emissions have been categorized into 3 scopes by the GHG Protocol. It is the most internationally recognized guide for carbon accounting. Additionally, Net0 emissions management platform categorizes the data you provide so you don't need to worry about improper or inaccurate reporting. All investor-grade reports will itemize emission scopes compliant with the GHGP.
Net0 enables you to analyze your carbon footprint by vendors, scopes, units, and dates. Keeping record over time, you will see the benefits of measuring scope 3 emissions and the benefits on the environment when they are offset. In the example image below, you can see that the scope 3 emissions have the most weight from Nov 1 - 30, 2021. That is because of the amount of international cargo shipping that was responsible for carbon emissions in that month in this importing business example.
Now see the same business example analysis below by units, which will show that the sources were mostly manufacturing and units (from the scope 3 emissions above).
Find out more about scope emissions reporting with one of our suggested resources:
• Article: What Are Scope 1, 2, and 3 Emissions?
• Article: Scope 4 Avoided Emissions: Everything You Need to Know
• Article: 10 Reasons Net0 Is the Best Carbon Accounting Platform
The first step of Net0's carbon accounting platform is using automation to capture raw data or entering it manually to convert it into carbon tonnage (tCO2e). Net0 was designed to completely streamline the emissions management process all in one dashboard. Using a calculator alone won't give you a clear and accurate view of the entire carbon footprint, won't issue you GHGP-compliant reports, and provide you verified offsetting projects for present, unavoidable emissions, to become carbon neutral certified. Calculating alone is great to see a rough estimation of what your company is emitting. However, using a full emissions management platform is the only way to get you to net zero until you eliminate carbon.
The GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard (referred to as the Scope 3 Standard) is a companion guide to the scope 3 standard and is the most widely recognized internationally for GHG calculations throughout value chains.
Net0 calculates all of the raw data provided by companies and automatically converts them to categorized scope 3 emissions data so outside accountants and consultancies aren't necessary. Since Net0 is a fully-loaded emissions management platform and not just a system of record, you can offset, make reduction plans with a simulation predictive technology tool, report emissions data of all 3 scopes, and get carbon neutral certified all in one place without seeking external tools and memorizing hundreds of pages of standards.
The essentials of scope 3 emissions reporting can be found in our GHG Reporting article so you don't have to study the entire GHGP technical guide unless you are seeking more in depth knowledge. Our system is GHGP-compliant so all reports are investor-grade and done in real-time. You can also filter specific dates in the system as well to get reports for a desired timeframe.
When you generate your report, you will see all of your emissions itemized by scope and categorized in each of the 15 scope 3 categories.
Inventing products with lower CO2 emissions during manufacturing and more eco-friendly life cycles, transporting larger loads to distribution centers to cut back on logistics movements, getting involved with sustainable suppliers who are like-minded in their carbon neutral goals, depending on what you produce and how, reductions will look different in your market. Obviously there are the things any industry can manage to cut like waste and unnecessary energy usage.
You can also create new ways of working which reduce emissions like less business travel, smarter commuting, and getting others involved in your company and value chain in recording the data. Net0 allows you to onboard users so entering emissions data is a shared responsibility. It is more time and cost-efficient when everyone participates.
Use the simulator tool within the Net0 platform to plan reduction strategies in the future. View your entire carbon footprint through analytics with graphs and tables over time. When you see your emissions data you will realize your sources and where you can cut back.
Plan realistic and ambitious reduction targets to get where you want to go by next year.
According to the Gold Standard on double counting:
"Double Counting: The scenario wherein the benefit of a single GHG Emission Reduction (ER) unit is used on more than one occasion to:
• Sell to third parties for the purpose of financial gain, VER offsetting or to achieve regulated targets AND/OR
• Be included in an account or inventory to avoid the requirement to purchase ER units under a regulated system"
Since carbon accounting software reports on raw data emissions accurately and all offsetting projects are verified without having to go outside to purchase carbon credits or enter trading markets, it is becoming more difficult for companies to perform double counting. Now there are emissions management platforms that report in compliance with the GHGP, so having records of the actual tCO2e along with offsets is valuable for honesty and transparency.
Scope 3 emissions can be managed more thoroughly with proper communication and data insights throughout the value chain. Scope 1 and 2 reporting that is done accurately by others in the value chain will also further you along on your net zero journey so all scope 3s do not fall on the same reporting company.
Book a demo with Net0 today and learn how converting your raw emissions data to precise calculations and tracking, reducing, offsetting, and reporting will get you carbon neutral certified faster and easier.
Again, net zero is coming to a balance between emissions and those which have been removed from the atmosphere. Gross zero means stopping all emissions, period.
You can usually start using the system within a week of contract signature. Book a call with us to start.
Yes, our team will help you set up the platform and provide you with guidance on how to use it.
We work with companies from different industries, from professional services and tech businesses to construction companies and manufacturing sites.
Net0 offers simplicity, automation, no-code integrations, and provides an activity-based approach meaning the calculations are done by co2e tonnage and not by how much money was spent on the activity that led to emissions.
Net0 is the most comprehensive solution to recording, measuring, tracking, offsetting, and certifying emissions all in one place and in minutes. Net0 also enables organizations to invite anyone they want to contribute to the dashboard, being all-inclusive and simple to use.