Scope 3 Emissions
All indirect greenhouse gas emissions in a company's value chain — both upstream (suppliers) and downstream (customers, product use, end-of-life) — not covered by Scope 1 or Scope 2.
Scope 3 emissions encompass all indirect greenhouse gas emissions that occur in a company’s value chain beyond Scope 1 (direct) and Scope 2 (purchased energy). GHG Protocol defines 15 Scope 3 categories covering upstream activities (purchased goods, business travel, employee commuting) and downstream activities (use of sold products, end-of-life treatment, investments).
Why Scope 3 is complex
Scope 3 typically represents 70–90% of a company’s total emissions footprint, but is the most difficult to measure because it depends on data from suppliers and customers outside the company’s direct control. Calculation relies on spend-based estimates, supplier-reported data, or industry average factors — all with higher uncertainty than Scope 1 & 2.
Current status for Indian manufacturers
BRSR currently requires only Scope 1 and Scope 2. Scope 3 is listed as an aspirational disclosure under BRSR Core. Sustaineve is built to expand to Scope 3 as regulatory requirements evolve.
Scope 3 and CCTS
CCTS focuses on Scope 1 & 2 intensity — Scope 3 is not part of the current CCTS calculation methodology. However, as CCTS evolves and buyer pressure for value chain data increases, Scope 3 tracking will become increasingly important for manufacturers in CCTS sectors.
Scope 3 and EU Buyer Requirements
EU buyers under CSRD require their Scope 3 emissions data, which includes supplier Scope 1 & 2 data as Category 1 (Purchased Goods & Services). Indian manufacturers supplying EU brands are the upstream Scope 3 source their buyers are required to disclose. When an EU buyer requests Scope 3 data from an Indian supplier, they are typically asking for that supplier’s Scope 1 & 2 emissions — to include as Category 1 in their own Scope 3 inventory.