In plain English
GHG Scope 3 (Value Chain)
GHG Scope 3 (Value Chain) is a inventory method run by Greenhouse Gas Protocol. People often refer to it by its code, GHG-S3. It works in the value chain space.
In short
Upstream and downstream value-chain emissions across the 15 categories.
What it is
The GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard provides requirements and guidance for companies to account for and report indirect emissions across their value chain. It organizes scope 3 emissions into fifteen categories that cover upstream activities such as purchased goods and services and downstream activities such as use and disposal of sold products. The standard defines how to set the reporting boundary, collect data, and calculate emissions, and it is intended to track a single company's emissions over time. Emissions are reported in metric tons of carbon dioxide equivalent, and the standard does not issue tradable units.
What it rewards
The reward is a credit called a GHG Inventory Statement (INV). One credit stands for one tonne of carbon dioxide kept out of the atmosphere (or taken back out of it). An assured organisational GHG inventory. A whole period of work is issued as one batch of credits at a time, in the same way a registry issues a batch.
What gets measured
To earn INV credits, a project has to measure and prove a few things. An independent reviewer checks the evidence before any credits are issued.
Which parts of the organisation are being counted (its reporting boundary).
The activity data for every source of emissions, across the relevant scopes.
The resulting total, expressed in tonnes of carbon dioxide equivalent.
Who takes part
Programme Administrator. Owns the protocol and approves reporters.
Reporting Entity. Defines the inventory boundary and reports activity data.
Verification Body. Provides limited or reasonable assurance over the inventory.
How it works
- 1
The organisation decides which parts of itself to count.
- 2
It gathers the activity data for every source of emissions.
- 3
The emissions are worked out using standard factors.
- 4
An independent reviewer checks the numbers for confidence.
- 5
The finished inventory is published as a statement of emissions.
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