Scope 3 emissions represent the largest share of a company’s carbon footprint. The GHG Protocol divides them into 15 categories – and their measurement and disclosure have become both an environmental and an economic necessity.
In tackling climate change, corporate responsibility extends far beyond reducing smokestack emissions or lowering office electricity use. Companies are now expected to adopt a comprehensive approach to carbon accounting that covers the entire value chain. The true climate impact often occurs in the less visible areas – within supply chains, during product use, and at the end of the lifecycle.
This is where Scope 3 emissions take center stage in sustainability agendas. They are the hardest to measure, but also the most critical. Today, investors, regulators, and consumers often look first at a company’s Scope 3 performance. In other words: a net-zero vision is impossible without Scope 3.
1. The GHG Protocol: Scope 3 and the 15 Categories
The GHG Protocol – Corporate Value Chain (Scope 3) Standard covers all indirect emissions along the value chain and groups them into 15 categories. This structure goes beyond supply chain emissions and reflects the entire product lifecycle.
Upstream categories:
Purchased goods and services
Capital goods
Fuel- and energy-related activities (not included in Scope 1 or 2)
Upstream transportation and distribution
Waste generated in operations
Business travel
Employee commuting
Upstream leased assets
Downstream categories:
9. Downstream transportation and distribution
10. Processing of sold products
11. Use of sold products
12. End-of-life treatment of sold products
13. Downstream leased assets
14. Franchises
15. Investments
Through this structure, companies can capture not only their direct emissions but also the full climate impact across the value chain and prioritize where action is most urgent.
2. First Step in Measurement: Screening and Data Management
Scope 3 accounting typically begins with a screening process to identify the most emission-intensive categories. Companies then either collect primary data directly from suppliers or rely on sector averages and secondary data. Over time, as better data is gathered, the accuracy of calculations improves.
3. International Regulation: The EU CSRD
The European Union’s Corporate Sustainability Reporting Directive (CSRD) requires large and publicly listed companies to provide extensive sustainability disclosures – explicitly including Scope 3 emissions.
For businesses operating in EU markets, Scope 3 reporting has become not only an environmental responsibility but also a legal obligation.
4. Challenges and Opportunities
The greatest challenge in Scope 3 reporting is data collection within complex supply chains. Multiple layers of suppliers make access to reliable data difficult and resource-intensive.
At the same time, well-managed Scope 3 strategies offer major opportunities:
Efficiency gains within the supply chain
Cost savings from reduced energy and resource use
Transparency and credibility in sustainability reporting
Competitive advantages in international markets
The GHG Protocol is currently working on updating the Scope 3 Standard. The goal is to improve data accuracy, strengthen comparability, and better support low-carbon investment decisions – ensuring the framework remains relevant and future-proof.
6. Turkey’s Perspective: Growing Imperatives
Carbon reporting has gained momentum in Turkey in recent years. Although Scope 3 is not yet widely implemented, international regulatory pressure is driving change:
The EU’s Carbon Border Adjustment Mechanism (CBAM) requires Turkish exporters to consider indirect emissions.
Turkey’s 2053 Net-Zero Target makes a broader national climate policy framework inevitable.
Globally integrated Turkish companies must ensure transparency and methodological consistency in Scope 3 reporting to remain competitive.
In this sense, Scope 3 accounting in Turkey is no longer just an environmental initiative – it has become a strategic requirement for sustainable growth and export market access.
Conclusion
Scope 3 emissions are the most decisive part of a company’s climate impact. While measurement is complex, it also opens pathways to reduce risks and create value:
Building investor trust
Ensuring compliance and market access
Demonstrating a credible contribution to a net-zero future
For businesses in Turkey, Scope 3 has become not only an environmental issue but an economic necessity. Companies that want to remain sustainable and competitive in the future must place Scope 3 at the top of their agenda.
Greenhouse Gas Protocol: Corporate Value Chain (Scope 3) Standard
Greenhouse Gas Protocol: Technical Guidance for Calculating Scope 3 Emissions
European Commission: Corporate Sustainability Reporting Directive (CSRD)