Scope 3 Emissions
Scope 3 Emissions are the indirect greenhouse-gas emissions that occur across a company's value chain — both upstream and downstream — as opposed to Scope 1 (direct emissions from owned sources) and Scope 2 (purchased energy). Under the GHG Protocol, Scope 3 spans fifteen categories including purchased goods and services, upstream and downstream transportation and distribution (freight), business travel, and use of sold products.
For most companies, Scope 3 is by far the largest share of the carbon footprint — often the great majority — and logistics and freight are a major component. It is also the hardest to measure and reduce, because it depends on data from suppliers and carriers outside the company's direct control. Growing regulation and disclosure requirements (and customer pressure) are pushing companies to measure and cut Scope 3, which puts a spotlight on the emissions of their transport and supply chains — driving demand for freight-emissions data, greener modes and low-carbon carriers. Scope 3 is why decarbonising logistics has become a board-level concern for shippers, not just carriers.
For most shippers, the carbon that matters isn't in their factories — it's in their supply chain, and freight is a big slice of it. As Scope 3 disclosure becomes mandatory, companies are forced to measure and cut their logistics emissions, turning carrier choice and freight-emissions data into a board-level issue. It is why decarbonisation now reaches every link of the chain.
How does Scope 3 relate to logistics?
Upstream and downstream transportation and distribution are major Scope 3 categories, so a company's freight emissions form part of its Scope 3 footprint.
Why is Scope 3 hard to manage?
It depends on data from suppliers and carriers outside the company's direct control, making it difficult to measure and reduce.