GLOSSARY
Scope 3 emissions
Scope 3 emissions are indirect greenhouse gas emissions arising from value-chain activities a company does not directly own or control — for example, the production of purchased materials, logistics, or product use. Under the GHG Protocol, this is distinct from Scope 1 (direct emissions) and Scope 2 (indirect emissions from purchased energy).
Why it matters for Tier-2/3
A customer's (OEM or Tier-1) Scope 3 is a supplier's Scope 1 and 2. As customers set emissions-reduction targets, they increasingly ask suppliers for emissions data and reduction plans, so building an internal emissions-accounting capability ahead of time is becoming a practical condition for keeping the business relationship, not just a nice-to-have.
Related
Informational only — this does not replace an official ESG evaluation. Independent content; not affiliated with or endorsed by any framework organization.