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Scope 3 Emissions

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Scope 3 covers indirect GHG emissions across the value chain — 15 categories including purchased goods, business travel, and Cat 15 financed emissions.

Definition

Scope 3 emissions are all indirect greenhouse gas (GHG) emissions in an entity’s value chain that are not classified as Scope 1 or Scope 2. They are defined by the GHG Protocol Corporate Value Chain (Scope 3) Standard and structured into 15 categories spanning upstream and downstream activities.

The 15 categories

Upstream (8 categories):

  1. Purchased goods and services
  2. Capital goods
  3. Fuel- and energy-related activities (not in Scope 1 / 2)
  4. Upstream transportation and distribution
  5. Waste generated in operations
  6. Business travel
  7. Employee commuting
  8. Upstream leased assets

Downstream (7 categories):

  1. Downstream transportation and distribution
  2. Processing of sold products
  3. Use of sold products
  4. End-of-life treatment of sold products
  5. Downstream leased assets
  6. Franchises
  7. Investments (financed emissions for financial institutions)

Scope 3 in BRSR

Comprehensive consolidated Scope 3 inventory under BRSR historically sits in Principle 6 Leadership (voluntary). However, per the SEBI BRSR Core circular dated 12 July 2023, Scope 3 GHG disclosure is required from the top 250 listed entities on a comply-or-explain basis from FY 2024–25, with assurance on Scope 3 phased from FY 2025–26 on the same basis. The associated Value Chain ESG disclosures (covering top upstream and downstream partners cumulatively comprising 75% of purchases / sales by value) are also applicable to the top 250 from FY 2024–25 on a comply-or-explain basis.

For service-sector entities (IT services, consulting, financial services), Scope 3 typically concentrates in Categories 1, 6, and 7. For financial institutions specifically, Category 15 (financed emissions) is frequently observed to be the most material category — see the Banking and NBFCs guide.

For methodology depth on Scope 3 calculation conventions, see the Scope 3 for Service Companies guide.