Why Scope 3 Emissions Are Critical for Net Zero

Every week, another Fortune 500 company pledges to hit net zero by 2030 or 2050. The ambition is real, but the roadmap often misses its largest component: Scope 3 emissions. While most companies understand their direct fuel use (Scope 1) and purchased energy (Scope 2), the lion’s share,over 60% of emissions, comes from Scope 3, embedded across suppliers, logistics, customer use, and product disposal.

This blog unpacks why Scope 3 is critical for net zero strategies, the regulatory and investor pressures shaping disclosure, and what forward-thinking businesses are doing to shrink their value chain carbon footprint.

What Makes Scope 3 So Important?

Scope 3 = Most of the Footprint

• For manufacturers: raw materials, parts, and packaging dominate emissions.
• For retailers: product use phase (e.g., consumer electricity for electronics).
• For financial institutions: portfolio emissions dwarf their office footprint.

The GHG Protocol estimates Scope 3 can reach 80–95% of a company’s total carbon impact. In other words, focusing on Scope 1 and 2 alone is like cleaning a corner of the house while leaving the rest untouched.

The Net Zero Equation: Why Scope 3 Matters

Science-Based Targets

SBTi requires companies to include Scope 3 in reduction targets if it makes up more than 40% of their total footprint.

That means net zero commitments ring hollow without upstream and downstream action.

Regulatory Pressure is Rising

CDP: Already scores companies based on Scope 3 transparency.

Investor & Market Expectations

Brands face rising scrutiny from customers, greenwashing claims often stem from ignoring Scope 3.t’s Scope 1.

Challenges in Tackling Scope 3

Data Gaps: Many suppliers don’t measure carbon data consistently.

Complexity: 15 categories under GHG Protocol, spanning purchased goods to employee commuting.

Influence vs. Control: Companies can’t directly control suppliers but must drive alignment.

Despite these barriers, businesses see Scope 3 as a lever for innovation and resilience, not just compliance. impossible to ignore in a credible emissions reporting guide.ions: if you own it, and it burns fuel, it’s Scope 1.

Turning Scope 3 Into a Net Zero Accelerator

1. Supplier Collaboration
   • Share tools, training, and data frameworks to help suppliers report.
   • Example: Some automotive leaders mandate supplier disclosure as a procurement requirement.
2. Smarter Materials & Design
   • Substituting recycled plastics or low-carbon steel reduces embodied emissions.
   • Circular design reduces end-of-life Scope 3.
3. Digital Platforms
   • AI-driven carbon accounting tools streamline supplier carbon data validation and indirect emissions reporting.

Real-World Impact

An orthopedic manufacturer partnered with Mavarick to get visibility into purchased goods and services (Scope 3.1), their single largest emissions source. By digitizing supplier data collection and validation, they were able to:

• Reduce upstream Scope 3 emissions by 12%
• Increase supplier engagement by 26%

This case shows why Scope 3.1 is central to net zero: if you can’t measure and manage emissions from what you buy, you can’t meaningfully reduce your footprint.

Ready to build your Scope 3 net zero strategy?

No Net Zero Without Scope 3

The verdict is clear: Scope 3 is where net zero succeeds or fails. Businesses can’t achieve their climate goals or maintain credibility without taking ownership of their value chain carbon footprint.

The path forward isn’t easy, but it is achievable with the right mix of supplier collaboration, data platforms, and strategic innovation. Companies that move now will build trust, unlock savings, and stay ahead of regulations.

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