CLIMATE

Explainer: What are scope 3 emissions and why are they causing companies a headache?

Large companies have struggled to calculate scope 3 emissions as smaller firms further down the value chain have not totted up their numbers

While disclosure on environment impact has improved dramatically in recent years there is a noticeable challenge around scope 3 emissions. Picture: Sakorn Sukkasemsakorn

Along with financial statements many large companies have issued their sustainability reports over the last number of weeks.

While disclosure on environment impact has improved dramatically in recent years there is a noticeable challenge around scope 3 emissions, which requires firms to calculate the emissions of things such as purchased goods and services.

Some companies say this is not only hard to calculate, but also an unfair and useless metric to be measured by. However, ...