Scope 3 emissions, indirect emissions from a company’s value chain, typically account for 80–95% of total emissions for most organisation. That includes emissions from purchased goods and services, transport, use-phase impacts, and end-of-life treatment, all beyond a company’s direct operational control.
According to Jasper Akkermans, Sustainability Researcher at Coolset, many firms have reduced their Scope 1 and 2 emissions through efficiency and renewable energy, but the real work sits in Scope 3. It’s not only a climate imperative, it’s a strategic differentiator.
From a compliance angle, the EU’s Corporate Sustainability Reporting Directive (CSRD) requires Scope 3 reporting for in-scope businesses. And while UK regulation has not yet made Scope 3 mandatory, Procurement Policy Note 06/21 already requires government suppliers to include Scope 3 in their Carbon Reduction Plans. Investors and banks are also demanding full emissions transparency as a condition for capital access.
In short, Scope 3 reporting is becoming table stakes — not just for compliance, but to win business and maintain trust.
Coolset’s platform helps businesses quantify Scope 1–3 emissions and align with ESG frameworks like CSRD and VSME. But raw emission figures are not enough — data quality is a common issue.
This is where LCAs come in.
“LCA shows the product-level emissions, while the GHG inventory aggregates the full picture. Together, they form a complete, actionable view,” says Jasper Akkermans.
LCA data enables businesses to:
This is especially valuable when aligning with frameworks such as the Science Based Targets initiative (SBTi), where precision and traceability are prerequisites. Without LCA, targets risk becoming vague commitments; with it, they become grounded roadmaps.
Coolset's talk spotlighted how UK and EU firms are embedding Scope 3 in their operations:
Each of these examples reinforces a key trend: Scope 3 transparency is a business enabler. Firms are using emissions data not just to comply, but to optimise procurement, reduce costs, and improve brand positioning.
In his presentation, Akkermans outlined a step-by-step framework for building a Scope 1–3 strategy:
Akkermans noted that even companies without dedicated sustainability teams can begin. In the early stages, ESG often sits with procurement or operations managers, but what really matters is starting.
While EU policymakers are debating the scope of CSRD, the core reporting requirements remain. As Akkermans warned, even if thresholds shift, “Scope 3 will stick around.”
Importantly, voluntary reporting is rising regardless of regulation. Coolset found that 90% of companies they surveyed want to continue ESG reporting, even if not legally obliged. Similarly, 89% of investors factor ESG data into their decisions, but cite unreliable Scope 3 data as a major obstacle.
The strategic takeaway is clear: Scope 3 is more than a reporting line. It’s a lever for operational resilience, supply chain optimisation, and long-term carbon cost control.
Scope 1: Direct emissions from owned or controlled sources.
Scope 2: Indirect emissions from purchased electricity or heat.
Scope 3: All other indirect emissions — from supply chains, transport, use of products, waste, and more.
Not yet across the board, but under PPN 06/21, major public suppliers must include Scope 3 in their Carbon Reduction Plans. If you trade in the EU, CSRD may also apply.
LCA provides material- and product-level emissions data, replacing generic estimates. This results in higher accuracy, better ESG credibility, and actionable insights for decarbonisation.
You can still start. Coolset and One Click LCA both offer guided workflows suitable for procurement, operations or finance leads initiating carbon reporting.