The Scope 3 Challenge

The Greenhouse Gas Protocol divides emissions into three scopes: - Scope 1 — Direct emissions from your own operations (factories, fleet) - Scope 2 — Indirect emissions from purchased energy - Scope 3 — All other value chain emissions (purchased goods, transportation, product use, end-of-life)

For most manufacturers and retailers, Scope 3 represents 70-90% of total emissions. Yet it is by far the hardest to measure because the data lives with your suppliers, their suppliers, logistics providers, and customers — organizations you may not have direct visibility into.

Traditional approaches estimate Scope 3 using industry-average emission factors — multiplying spend in a category by an average emissions-per-dollar factor. This produces a number, but one that is too inaccurate to drive meaningful reduction decisions.

How AI Enables Granular Scope 3 Measurement