Corporate Value Chain (Scope 3) Accounting and Reporting Standard

Scope 3 Guidance

Greenhouse Gas Protocol , 2011

This document serves as a comprehensive guide on the "Corporate Value Chain (Scope 3) Accounting and Reporting Standard," a supplement to the GHG Protocol Corporate Accounting and Reporting Standard. Its primary objective is to assist companies in measuring and reporting greenhouse gas (GHG) emissions across their entire value chain, known as Scope 3 emissions. These emissions include indirect emissions that occur both upstream and downstream of a company's operations, such as those from purchased goods and services, transportation, waste disposal, and the use of sold products. The document addresses several critical questions that companies may have regarding Scope 3 emissions. It explains the categories of Scope 3 emissions, the principles of GHG accounting and reporting, and the steps required to develop a comprehensive Scope 3 inventory. It also provides detailed guidance on setting boundaries for Scope 3 emissions, collecting and managing data, and ensuring the accuracy and reliability of the reported information. Readers will find answers to questions such as how to effectively collect and verify GHG data from suppliers, the importance of improving data quality over time, and the methodologies for allocating emissions among various products and activities. By reading this document, readers will gain a thorough understanding of how to identify and manage their Scope 3 emissions. They will learn about the importance of including all relevant emissions in their GHG inventory, the methods for collecting and prioritizing data, and the principles of transparency and accuracy in reporting. The document also highlights the benefits of addressing Scope 3 emissions, such as improving operational efficiency, reducing risks, and gaining competitive advantages. Additionally, it delves into the challenges of ensuring data accuracy and transparency, setting GHG reduction targets, and the processes involved in obtaining assurance for GHG inventories. Designed to be accessible to companies of all sizes and sectors, as well as other organizations like government agencies, non-profits, and universities, the document provides practical examples and case studies to illustrate the application of the guidelines. This makes it a valuable resource for any organization looking to enhance its sustainability practices and reduce its overall carbon footprint. By the end of this document, readers will have a thorough understanding of the best practices for GHG data collection and management, the significance of Scope 3 emissions, and the strategies for setting and tracking GHG reduction targets. They will also gain insights into the methodologies for allocating emissions, the importance of data quality, and the procedures for obtaining assurance to enhance the credibility of their GHG reports. In summary, this document serves as a vital tool for companies aiming to understand and manage their Scope 3 emissions. It offers a structured approach to GHG accounting and reporting, ensuring that companies can make informed decisions and take effective actions to mitigate their environmental impact. Readers interested in comprehensive and transparent GHG reporting will find this document essential for their sustainability efforts.