SUSTAINABILITY SPOTLIGHT | 36 SUSTAINABILITY SPOTLIGHT | 37 More than two decades ago, the Greenhouse Gas individuals. While these emissions are not fully under Protocol (GHG Protocol) defined emissions scopes a firm’s control, that firm may be able to aect the as a way of classifying carbon sources. According to activities that result in them, influence its suppliers and/ Understandin the GHG Protocol, Scope 3 emissions encompass all or choose which suppliers to engage with. indirect emissions not included in Scope 2, which occur throughout the value chain of the company reporting The GHG Protocol corporate standard classifies Scope ndustria Scope 3 them, including those from upstream and downstream 3 emissions into 15 dierent categories, as shown in sources. Figure 1. Although not all categories are relevant to every organisation, they provide a structured framework In other words, most of a business’s Scope 3 emissions to understand, measure, report and monitor Scope 3 mi i: are the Scope 1 and 2 emissions of another business/ sources of emissions across a value chain. WHAT, WHY, HOW Although initially seen as secondary by most corporate-level standards, Scope 3 is now an important focus for corporations in the push to net zero, as new evidence points to its significance. Here, Cambridge Industrial Innovation Policy’s Dr David Leal-Ayala explores the meaning of Scope 3, its relevance and how businesses can approach this challenge. He draws upon the White Paper The “No-Excuse” Opportunities to Tackle Scope 3 Emissions in Manufacturing and Value Figure 1. Source: Extracted and modified from: World Economic Forum, The “No Excuse” Framework to Accelerate the Path to Net-Zero Manufacturing and Value Chains, January 2023; and The GHG Protocol, Chains, published by the World Economic Forum’s Corporate Value Chain (Scope 3) Accounting and Reporting Standard, 2011. Industry Net Zero Accelerator Initiative.