Every organisation wants to claim progress on reducing its carbon footprint. But for many, there’s a hidden truth: the biggest share of emissions isn’t where they think it is.
Most businesses focus on what they can see, the electricity used in offices, the company cars, the heating and cooling systems. These are important, but they only tell part of the story. The real climate impact often lies beneath the surface, in what’s known as Scope 3 emissions.
If your business isn’t tracking them yet, you could be missing up to 80-90% of your total footprint.
It’s time to look deeper into the emissions that hide in plain sight and discover how understanding Scope 3 can transform your sustainability strategy.
What are Scope 3 emissions?
When companies talk about their carbon footprint, they usually divide emissions into three “scopes.”
- Scope 1: Fuel Combustion, Company Vehicles, Fugitive Emissions
- Scope 2: Purchased Electricity, Heat and Steam
- Scope 3: Purchased goods and services, Business travel, Employee commuting Waste disposal, Use of sold products, Transportation and distribution Investments, Leased assets and franchises
Even if your operations are carbon-neutral, your suppliers, customers, and logistics partners might not be. Every step in your supply chain leaves a carbon trace and they all add up.
Why businesses overlook Scope 3 emissions
Scope 3 emissions are often overlooked because it’s hard to measure. Unlike your office energy bill or fuel receipts, these emissions come from sources outside your direct control. They require data from suppliers, contractors, and customers and that can feel overwhelming.
Many businesses assume that because Scope 3 emissions doesn’t come directly from their own buildings or vehicles, they aren’t really their problem. However, that’s like saying you’re not responsible for the waste from the products you sell. In reality, people just don’t think that way anymore.
Today, consumers are choosing brands not only for quality and price, but for how genuinely committed they are to sustainability. If individuals are making greener choices in their daily lives like reducing waste, buying local, choosing eco-friendly products then businesses should be making greener choices too.
The challenge is that Scope 3 emissions are harder to measure because they come from suppliers, deliveries, product use, and even how items are disposed of. It’s messy and often feels overwhelming. But expectations are shifting fast. Investors, regulators, and customers now expect companies to take responsibility for their whole environmental impact, not just the parts they directly control. Standards like the GHG Protocol and the CSRD are pushing businesses to step up, be transparent, and show they’re serious about change.
The hidden sources you might be missing
You might be surprised by where Scope 3 emissions hide. Here are some of the most common and most overlooked sources:
- Purchased goods and services – Emissions arising from the manufacturing processes behind the items your organisation buys.
- Business travel and commuting – Flights, trains, car journeys, and even remote work setups all add to your total footprint.
- Waste and end-of-life disposal – What happens to your products after customers use them can have a lasting environmental cost.
- Investments and financial activities – For financial institutions, the emissions linked to financed projects are often the largest contributor.
- Upstream transportation – The emissions from shipping goods to your company, not just from your company, are often overlooked.
Each of these areas may seem small on its own but together, they can outweigh your direct emissions many times over.
Why Scope 3 matters for your business
Understanding and addressing Scope 3 isn’t just about compliance, it’s about opportunity.
When you identify where your hidden emissions lie, you also uncover where you can make the biggest impact. Collaborating with suppliers on cleaner production, redesigning packaging, or choosing more efficient logistics can lead to cost savings and stronger partnerships.
Transparency around Scope 3 also builds trust. Stakeholders don’t expect perfection, they expect honesty, progress, and measurable action. Companies that openly share how they’re tackling indirect emissions are seen as credible, forward-thinking, and responsible.
How to reduce Scope 3 emissions
Reducing Scope 3 emissions starts with influence, collaboration, and smarter decision-making. Begin by engaging suppliers, ask for their emissions data, set shared sustainability goals, and prioritise partners with strong environmental practices. Look for opportunities to redesign products or packaging using lower-carbon materials, and incorporate circular principles such as reuse, repair, or recycling.
Encourage low-carbon travel policies and support greener commuting options for employees. Improve logistics efficiency by consolidating shipments or choosing lower-emission transport methods.
Finally, build transparency into procurement and investment decisions so carbon performance becomes as important as cost or quality. Small changes across your supply chain can add up to significant reductions when everyone moves in the same direction.
The future of carbon accountability
In the next decade, Scope 3 reporting will become as standard as financial reporting. Businesses that act now will be ahead of the curve and ready to meet regulations, attract investors, and win customer trust.
Your carbon footprint summary is more than a report. It’s a reflection of your values and your vision for the future.
By looking beyond your walls and accounting for the full journey of your products and services, you move from being carbon-aware to truly climate-responsible.
The future belongs to businesses that see the whole picture and act on it.
