Scope 3 is the most comprehensive and often the most significant category of greenhouse gas emissions under ESRS E1. These emissions are not produced by the entity and do not result from purchased energy, but occur throughout the entire value chain - from the production of raw materials to the use and disposal of products.<\/p>\n
According to paragraph 44 of ESRS E1, Scope 3 includes all other indirect emissions that occur in the entity's upstream and downstream activities. These emissions are divided under the GHG Protocol into 15 distinct categories such as:<\/p>\n
procurement of goods and services<\/p>\n
upstream transport and distribution<\/p>\n
utilisation of products sold<\/p>\n
end-of-life disposal<\/p>\n
business travel<\/p>\n
investments held.<\/p>\n
The standard requires full assessment of these emissions to the extent that they are significant in terms of impact and materiality.<\/p>\n
According to RD E1-6, entities must provide:<\/p>\n
Identification and classification of categories - the organisation assesses each of the 15 categories for relevance and materiality<\/p>\n
Data collection - supply chain data, product life cycle data, commercial contracts and standardised estimation tools are used<\/p>\n
Application of calculation methodologies - GHG Protocol guidelines, sectoral methodologies and material and process carbon footprint databases can be used<\/p>\n
Consolidation and documentation of estimates - indicate exactly which categories have been included, what methods have been used and what are the limitations in terms of reliability.<\/p>\n
Scope 3 reporting should be clear, justified and proportionate to the significance of the emissions. It is recommended to structure the information by categories, mention sources of uncertainty, relate the results to the organisation's transition plans, explain deviations from previous years, to the extent that they are relevant.<\/p>\n