A lot of companies have decided to start calculating their Greenhouse Gas emissions in the previous years.

Some because they have committed to an initiative, such as SBTi or Amazon Climate Pledge, and others because they want to know more about how to reduce their impact most effectively.

When calculating GHG emissions, they are segmented into three scopes: scope 1, 2 and 3.

Scope 1 covers all owned direct emissions, whereas scope 2 covers all owned indirect emissions.

These two scopes are by far the easiest to calculate and collect data for.

Scope 3 on the other hand is not as easy. It covers all not owned indirect emissions, such as actions in the value chain.

But even though scope 3 takes more resources to calculate, we would argue that it is the most important scope of all three for lifestyle companies. Here’s why:

1. Largest source of emissions
   
   Scope 3 emissions are often the largest source of a company's greenhouse gas (GHG) emissions.
   
   This includes emissions from the production and use of purchased goods and services, as well as emissions from the use of a company's products by customers.
   

2. Supply chain impact
   
   By understanding and addressing these emissions, you can have a greater impact on reducing their overall GHG emissions.
   

3. Sustainability reporting
   
   Many companies are starting to develop sustainability reports, either voluntarily or because it is required by law or membership of an organisation.
   
   Including Scope 3 in these reports is very recommended.
   

4. Long-term strategy
   
   Addressing Scope 3 emissions is essential for your company, if you wish to achieve long-term sustainability goals and meet regulatory requirements, such as those under the Paris Agreement.

But calculating Scope 3 correctly is not an easy task and is very often outsourced.

At Sustaina Company, we can also help you develop your first carbon report.

Right now you even have the opportunity to get half of your expenses covered, if you are a danish SME. Read more by clicking the banner below.

Just reach out if it is something you are interested in.