Scope 3 Carbon Emissions Explained

Reducing carbon emissions is critical for businesses aiming for net zero.
It’s important to understand the three scopes of emissions and how they affect your business’s carbon footprint.

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Scope 1 Emissions:

Scope 1 covers direct emissions from sources owned or controlled by the business, such as fuel used in company vehicles or boilers. These are the easiest to track because the business has direct control over them.

Scope 2 Emissions:

Scope 2 refers to indirect emissions from the consumption of purchased energy, like electricity. Switching to renewable energy sources such as solar power, as offered by Shawton Energy, can significantly reduce Scope 2 emissions.

Scope 3 Emissions:

Scope 3 emissions include all other indirect emissions occurring in the company’s value chain, such as emissions from suppliers, product use, waste, and transportation. These typically account for the majority of a business’s carbon footprint and are the hardest to manage, but reducing them is key to achieving net zero.

infographic explaining how scope, 1, 2, 3 emissions work

How to Calculate Scope 3 Emissions

Calculating Scope 3 emissions involves gathering data across various activities and partners in your value chain. The Greenhouse Gas Protocol and UK government resources like DEFRA offer tools and emission factors to calculate your impact.

Steps for calculating Scope 3 emissions:

  1. Identify key emission categories (e.g., supply chain, product use, business travel).
  2. Gather data from suppliers, partners, and internal departments.
  3. Apply emission factors from trusted sources like the GHG Protocol to estimate emissions.

Reducing Scope 3 Emissions

To effectively reduce Scope 3 emissions, businesses can:

  1. Engage suppliers:  Work with suppliers who adopt sustainable practices and renewable energy.
  2. Optimise logistics:  Minimise transportation emissions by improving efficiency and reducing waste.
  3. Improve product design:  Focus on sustainable materials and reducing emissions during product use.
  4. Educate employees: Implement sustainable practices for business travel and commuting.
Understanding Scope, 3 Emissions

Standards & Frameworks for Carbon Management

Several standards and frameworks guide businesses in managing their emissions:

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Greenhouse Gas Protocol

Industry standard for calculating and reporting emissions.
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Science Based Targets Initiative (SBTi)

Aligns company targets with the Paris Agreement.
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ISO 14064

Provides guidance on quantifying and reporting greenhouse gas emissions.

Useful Resources

  1. Greenhouse Gas Protocol: Tools for calculating Scope 1, 2, and 3 emissions.
  2. DEFRA: UK government emission factors.
  3. CDP: Provides reporting frameworks for managing carbon emissions.
  4. Calculate your business carbon savings using Shawton Energy’s Commercial Solar Calculator

Case Study: Shawton Energy’s Impact With Princes Group

Shawton Energy partnered with international food and drink manufacturing business Princes Group to help them reduce their carbon footprint through commercial solar energy solutions. In the first year alone, the installation resulted in a significant carbon savings of 135,776 kg. This initiative highlights the powerful role solar energy can play in reducing Scope 2 and Scope 3 emissions, helping companies make meaningful progress towards their net zero goals.

This case also demonstrates how businesses like Princes Group, can achieve large-scale carbon reduction through renewable energy investments.

Shawton Energy is committed to helping businesses reduce emissions through sustainable, scalable solar energy solutions that align with their net zero goals. Contact us today to see how we can help you reduce your carbon footprint.

FAQ on Scope 1, 2, and 3 Emissions

What are Scope 3 emissions?
Scope 3 emissions include indirect emissions from activities outside your direct control but within your value chain, such as supplier emissions, transportation, and product use.
What are Scope 1, 2, and 3 emissions?
  • Scope 1: Direct emissions from owned sources (e.g., company vehicles).
  • Scope 2: Indirect emissions from purchased energy (e.g., electricity).
  • Scope 3: All other indirect emissions in the value chain (e.g., supply chain, product lifecycle).
Why are Scope 3 emissions important?
Scope 3 emissions typically account for the largest share of a company’s total carbon footprint, making their reduction essential to achieving meaningful sustainability and net zero goals.
How can you calculate Scope 3 emissions?
To calculate Scope 3 emissions, identify relevant activities in your value chain, gather data from suppliers and partners, and apply emission factors using frameworks like the GHG Protocol.
How can you reduce your business’s Scope 3 emissions?
You can reduce Scope 3 emissions by:

  • Engaging with suppliers to adopt sustainable practices.
  • Improving product design for sustainability.
  • Minimising transportation emissions.
  • Encouraging sustainable business travel and commuting.
What is the GHG Protocol?
GHG stands for Greenhouse Gas Protocol which is an international standard that provides guidelines for calculating and reporting greenhouse gas emissions, including Scope 1, 2, and 3.
What are the categories of Scope 3 emissions?
The 15 categories of Scope 3 emissions include upstream activities (e.g., purchased goods, transportation) and downstream activities (e.g., product use, end-of-life treatment). A full list can be found in the GHG Protocol documentation.
Where to start with reducing your Scope 3 emissions?
Start by mapping your value chain to identify key emission sources. Focus on suppliers, transportation, and product lifecycle, and engage stakeholders in reducing their environmental impact.
Are financed emissions Scope 3?
Yes, financed emissions, such as those related to investments and lending, are considered part of Scope 3 emissions, particularly for financial institutions.
Are Scope 3 emissions mandatory?
In the UK, reporting Scope 1 and 2 emissions is mandatory for some businesses, but Scope 3 emissions reporting is generally voluntary, although it’s increasingly becoming a requirement in sustainability reporting.
How are Scope 3 emissions calculated?
Scope 3 emissions are calculated by assessing emissions across your value chain, applying emission factors to relevant activities, and using tools such as the GHG Protocol or DEFRA’s guidance.
How many companies report Scope 3 emissions?
More companies are reporting Scope 3 emissions as part of their net-zero strategies. Major frameworks like CDP and SBTi have encouraged thousands of businesses globally to track and disclose these emissions.

For more information, you can explore the GHG Protocol or the CDP for guidelines and resources to assist with Scope 3 emissions reporting.

What are some challenges in tracking Scope 3 emissions?
Challenges include the complexity of gathering data across the value chain, lack of direct control over third-party emissions, and data accuracy.
How do Scope 3 emissions affect a business’s net zero strategy?
Since Scope 3 emissions make up a large portion of total emissions, addressing them is critical to reaching net zero targets. Failing to manage these emissions can limit a company’s progress toward carbon neutrality.