Scope 3
How to calculate scope 3
Scope 3 emissions typically represent the largest share of a company’s carbon footprint, as they cover the full value chain—from raw material sourcing to product use and end-of-life disposal. The Greenhouse Gas Protocol outlines 15 categories of Scope 3 emissions, though not all are relevant to every business. Understanding which categories apply is essential for prioritizing efforts. You can explore the full list in the Corporate Value Chain (Scope 3) Standard and the Scope 3 Calculation Guidance.
There are several ways to calculate Scope 3 emissions, depending on the availability of data. A common starting point is a spend-based assessment that uses financial data to estimate emissions and identify carbon hotspots. Since financial data is typically accessible within your company’s systems and is already being tracked, it serves as a good initial approach. For the most significant categories, more accurate activity-based data can be collected, such as the weight of materials or transport distances.
Collaborating with suppliers is essential for refining estimates and improving data quality over time. This is what deSter is currently doing through our supplier engagement program focused on carbon emissions, and we are sharing these resources. If you have any questions, please don’t hesitate to reach out.
Set Emissions Reduction Targets
Setting clear targets to reduce Scope 3 emissions is a crucial step in addressing climate change. These targets define how much a company plans to cut its direct and indirect emissions over a specific period and provide a foundation for meaningful progress. There are two common types of carbon reduction targets. Absolute targets focus on reducing total emissions by a fixed amount, such as cutting emissions by 25% by 2030, regardless of business growth. Intensity targets, on the other hand, measure emissions relative to an activity, like emissions per product or per unit of revenue, allowing companies to grow while improving efficiency.
To ensure targets are credible and effective, the Science Based Targets initiative (SBTi) offers a globally recognized framework to help companies align their goals with climate science. Targets aligned with SBTi support efforts to limit global warming to 1.5°C, as outlined in the Paris Agreement. deSter recommends that suppliers adopt SBTi-aligned targets and pursue official validation to demonstrate a serious commitment to climate action.
Back to Basics: What are Scope 1, 2 and 3 emissions? – YouTube Setting Science-Based Targets – UN Global Compact
Contact us
If you are looking for guidance or more information, don’t hesitate to get in touch!
- Fien Van Den Heuvel, Environmental Footprint Manager
fvandenheuvel@gategroup.com - Stef Oud, Sourcing & Procurement Specialist
SOud@gategroup.com
Explore more
ESG supplier portal
At deSter, sustainability is a core part of our business strategy. As we work to reduce greenhouse gas (GHG) emissions across our entire value chain, strong collaboration with our suppliers is essential.
Scope 1 emissions
Scope 1 emissions typically come from fuel combustion in company-owned vehicles or
machinery, heating systems powered by fossil fuels, industrial processes, and fugitive
emissions from refrigeration or cooling equipment.
Scope 2 emissions
Scope 2 emissions result from the purchase of electricity, steam, heating, or cooling from external providers. These indirect emissions depend on the carbon intensity of the energy supplied, which varies by country and energy mix.