Scope 3 greenhouse gas emissions
Scope 3 can include emissions from purchased goods and services, business travel, transportation by others and the use or disposal of sold products. Classification depends on the entity’s reporting boundary and activity, so the same physical emissions may appear in different scopes for different organisations. Estimates often require data from value-chain partners and disclosed assumptions. Apply the applicable IFRS S2 requirements and any relevant reliefs.
Worked example
A manufacturer’s customers burn fuel in the products sold by the manufacturer. The resulting use-phase emissions are potentially downstream Scope 3 for the manufacturer, even though customers directly generate them.
Common mistake
Excluding downstream emissions because the entity does not own the source, or counting purchased electricity consumed by the entity as Scope 3 instead of Scope 2.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | SBR | Direct | September 2026–June 2027 |