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. 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 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.
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