Which type of emissions are classified as Scope 3 emissions?

Prepare for the ESCP Sustainability and ESG Exam. Study with targeted flashcards and multiple-choice questions, each providing hints and detailed explanations. Enhance your knowledge and pass your exam with confidence!

Scope 3 emissions are classified as indirect emissions that occur in a company’s value chain, which includes both upstream and downstream activities. This definition encompasses a wide variety of sources, including emissions related to the production of purchased goods and services, transportation and distribution, waste disposal, and the use of sold products. Unlike Scope 1 and Scope 2 emissions, which are directly controlled by the company (such as direct emissions from fuel combustion or emissions from purchased electricity), Scope 3 emissions are typically not under the direct control of the company and involve a broader view of the environmental impact throughout the entire lifecycle of a product.

Understanding Scope 3 emissions is crucial for companies committed to sustainability and minimizing their overall carbon footprint, as these emissions often represent the largest share of their total greenhouse gas emissions. Addressing these emissions requires collaboration with suppliers and customers to implement more sustainable practices across the entire supply chain.

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