Climate & Environment
Value Chain Emissions
Definition
Value chain emissions are the greenhouse gas emissions arising across an organisation's entire value chain — upstream (purchased goods, transport, commuting) and downstream (product use, disposal) — corresponding to the GHG Protocol's Scope 3 categories added to its own Scope 1 and 2. For most companies value chain emissions exceed operational emissions severalfold, which is why science-based targets require Scope 3 coverage when it exceeds 40% of the total — as it almost always does.
References
This reference provides supporting context for how “Value Chain Emissions” is defined and used.
Source imported for editorial provenance.
Overview
How it is used
The concept structures Scope 3 inventories, science-based target setting, CSRD/ISSB value chain disclosure, and supply chain decarbonisation programmes.
Why it matters
Value chain emissions are the whole iceberg; everything else in corporate carbon accounting is the tip.