modern businesses are links in a long and complex value chain. These businesses contract with third parties for services such as raw material sourcing, waste management operations, transportation logistics, and so on. As a result, most businesses learn that more than 80 percent of their emissions fall under Scope 3.

Since the sources that contribute to Scope 3 emissions, also known as value chain emissions, are not directly within your company’s control, mitigating them might be difficult. But ignoring them is not an option worth considering. Carbon reporting standards such as the Science-Based Targets initiative (SBTi) and the International Sustainability Standards Board (ISSB) require that Scope 3 be included. Even if SECR encourages this, it is still totally up to the individual to engage in it. The reality is that Scope 3 must be included by any credible strategy for reaching net zero. You need to have the right steps to reduce scope 3 emissions there.

Making products and providing services

The potential for the businesses you partner with will be affected by the decisions you make inside your own organization. By shelling out more cash for eco-friendly waste removal, you’re sending a message to the market that you approve of this practice. When you develop emission-friendly processes, products, or packaging, you provide other businesses new options for cutting emissions across their supply chains.

Reducing the total emissions generated throughout the life cycle of your products and services may have a beneficial impact on the environment and may also provide you an edge in the marketplace. Businesses are under growing pressure to provide more information about their goods’ environmental impact since this is becoming an increasingly important concern for customers. It’s possible that manufacturing costs will go down for products that produce less pollutants.

ISO regulations mandate that suppliers pledge to work toward “net zero” emissions

Saving money is one of the most powerful tools you have for reducing emissions across the whole value chain of your company. Companies who are committed to becoming zero carbon are therefore placing more pressure on their suppliers to do the same. Examples include NHS England, which factors emissions into procurement choices and produced a road map in February 2023 to help suppliers fit with its aim of attaining net zero emissions. Tesco, a worldwide grocery operator, plans to have a supply chain with zero waste by 2050 and is pushing all of its vendors to do the same.

Suppliers will be prioritized based on a variety of factors, including their climate action plan, past performance, and transparency about their emission statistics.


One of the most challenging challenges in trying to acquire control of Scope 3 emissions is the lack of visibility. According to the conclusions of a study that was released by Accenture in 2022, “Scope 3 emission hot spots” are more likely to emerge in the downstream supply chain in connection with the purchase of raw materials. However, a lack of monitoring is an issue across the whole value chain. Again, your company may use its purchasing power to its advantage by enforcing an honest emissions reporting system among its business partners via a strict procurement policy. Your company may then maximize its buying power as a result.