Scope 1 = the emissions from owned or operated assets (for example, the fumes from the tailpipes of a company's fleet of vehicles); Scope 2 = the emissions from purchased energy; and Scope 3 = the emissions from everything else (suppliers, distributors, product use, etc.)

Needless to say, measuring Scope 3 emissions is a big undertaking. But it matters: for many businesses, Scope 3 emissions account for more than 70 percent of their carbon footprint.

Measuring and managing these emissions can motivate a company to do business with greener suppliers, improve the energy efficiency of its products and rethink its distribution network - measures that significantly reduce the overall impact on the climate.

Measuring value chain emissions also can earn companies a gold star with investors and stakeholders. CDP scores companies based on climate change-related information collected through its global environmental disclosure system. These scores then are shared with CDP’s large investor network representing more than $100tr in assets. Companies earn points toward this score by disclosing emissions from Scope 3 categories.

If your company does not yet account for Scope 3 emissions, you may wonder where to start.

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