Scope 3 emissions are greenhouse gases produced by activities outside an organization's direct control, such as supply chain, transportation, product usage, or disposal. These emissions, also known as value chain emissions, are challenging to measure and mitigate due to their indirect nature.

Calculating Scope 3 emissions is of immediate relevance to organizations for whom Scope 3 emissions is most material and they have Net Zero emissions reduction targets as part of their ESG goals. These organizations have to calculate Scope 3 emissions accurately to identify hotspots. It’s also important for organizations that report to CDP or have committed to the Science-Based Targets initiative (SBTi).

Scope 3 emissions, due to their complexity and volume, necessitate a systematic approach for calculation and reporting. Spend-based methods for emission calculations often don’t work for decarbonization. There is an increasing need to support more accurate methods or get primary data from the supplier for emissions calculations. From a reporting standpoint, adhering to ESG reporting frameworks' disclosure standards is crucial. Successful Scope 3 disclosure can meet stakeholder expectations, as investors, employees, and communities increasingly focus on organizations' emissions management.

Envizi Supply Chain Intelligence is an enterprise-grade, scalable, secure platform. It automates the capture and calculation of high-volume Scope 3 emissions data for categories 1 & 2 and provides insights for decarbonization, risk management, auditability and ensuring regulatory compliance.

It comprises of :

• SCI module for transactional data capture, automated emissions calculation supporting all 4 types of calculation in alignment with the GHG protocol, emissions hotspots identification,      remediation  and data auditability.
• Supplier portal facilitating supplier engagement. It helps in getting the PCF data from suppliers, data for hybrid emission calculations and data for ESG survey and SBTi survey.
•  Envizi Integration for reporting.

IBM offers a variety of resources to help you navigate through SCI. Below is a guide to what’s available:

• The Scope 3 Emissions fundamentals page provides more details on scope 3 emissions, categories and reporting.
• The Envizi-SCI page have details on overview, features and Benefits of SCI module.
• Envizi-SCI has all the documentation related to SCI.

As always, IBM values your suggestions, feedback and ideas. You can submit them through the Ideas Portal.