# Scope 3 emissions > Scope 3 emissions are all indirect greenhouse gas emissions that occur in a company's value chain, outside its own operations and purchased energy, as defined by the GHG Protocol. For agri-food companies, they include emissions from farming and land-use change in supplying farms. Also known as: Scope 3, value chain emissions, FLAG emissions, supply chain emissions ## Why does it matter? For food and agricultural companies, most emissions typically occur in the value chain, at the farm and through land-use change such as [deforestation](/glossary/deforestation/). Climate targets and disclosures therefore depend on credible supply chain data. The GHG Protocol's Corporate Value Chain (Scope 3) Standard organises these emissions in 15 categories; purchased goods and services is usually the most relevant for commodities. ## How does it work? - **Spend-based**: emissions estimated from money spent and average factors. Simple but generic. - **Average-data**: volumes purchased times average emission factors for the commodity and region. - **Supplier-specific**: data from actual farms and plots, including practices, yields and land-use change history. Reductions and removals within the supply chain, such as agroforestry, can be accounted for under GHG Protocol land-sector guidance, with requirements on traceability and permanence. Check the latest guidance before making claims. ## Common pitfalls - Using averages that hide the effect of supplier improvements. - Claiming reductions without traceability to the farms involved. - Double counting when several buyers claim the same farm-level reductions. - Ignoring land-use change, often the largest source. Farmer1st provides plot-level data for supplier-specific accounting and intervention programmes through its [carbon](/services/carbon/) service. ## Frequently asked questions ### Why are agricultural Scope 3 emissions hard to measure? They depend on many farms with different practices, yields and land-use histories. Default emission factors are often used, which do not reflect a company's actual suppliers or any improvements they make. ### What are FLAG emissions? FLAG stands for Forest, Land and Agriculture. The Science Based Targets initiative uses the term for land-related emissions and removals, including land-use change, for which it provides specific target-setting guidance. ## Sources - [GHG Protocol, Corporate Value Chain (Scope 3) Standard](https://ghgprotocol.org/standards/scope-3-standard) - [GHG Protocol, Land Sector and Removals Guidance](https://ghgprotocol.org/land-sector-and-removals-guidance) - [Science Based Targets initiative, Forest, Land and Agriculture](https://sciencebasedtargets.org/sectors/forest-land-and-agriculture)