Scope 2 and Scope 3: Understanding Indirect Emissions and Their Impact on Low-Carbon Strategy

This scope covers emissions associated with the production of energy used by the company: electricity, thermal energy, or energy derived from purchased steam.

Examples:

• • Energy needs in offices or factories,
  • District heating,
  • Industrial steam purchased from a service provider.

👉 These emissions are calculated based on electricity bills, kWh consumed, and emission factors provided byADEME orISO. Scope 2 emissions depend directly on a country’s energy mix. In France, the use of nuclear power limits the carbon intensity of the energy consumed; this is not the case in all European countries.

Scope 3 includes all other emissions, which are divided into 15 categories according to the standard. These emissions originate from the entire value chain: suppliers, customers, travel, goods, waste, etc.

Examples:

• • Purchases of goods and services,
  • Employees' commutes,
  • Upstream and downstream logistics,
  • Use and End of Life of Sold Goods.

👉 Scope 3 emissions can account for up to 90% of total emissions. It is therefore a major challenge in any low-carbon strategy.

⚖️ Challenges and Opportunities in Indirect Emissions Management

▸ A complex but essential data collection process

Indirect Scope 2 emissions (related to energy, heat, or steam consumption) and Scope 3 emissions (related to purchases, travel, goods sold, transportation, etc.) account for a major portion of the BEGES for many organizations.

👉 Gathering information for these areas remains one of the main challenges:

• Scope 2 emissions can generally be derived from energy bills.
• For Scope 3, the information is held by multiple external parties (suppliers, distributors, customers, partners, etc.).

Objective: To gain a comprehensive view ofthe carbon footprint, even if some Scope 3 categories are initially based on estimates. This is a starting point, not an end goal.

▸ A dependency that can become a strategic asset

Scope 3 refers to indirect emissions over which the company does not always have control. This includes:

• To engage partners in the upstream supply chain using collaborative tools,
• To include carbon-related provisions in requests for proposals (see DPEF regulations, national low-carbon strategy, and ESG reporting),
• To work together to build a low-carbon culture at every stage of the value chain.

💡 This challenge becomes an opportunity: improving a product’s carbon performance also means reducing costs, building resilience, and enhancing brand image.

▸ A dynamic field of analysis to monitor over time

The scope of indirect emissions is changing:

• Depending on the local energy mix,
• Depending on changes tothe product offering or logistics processes,
• In accordance with the organization’s corporate social responsibility commitments.

This is why it is importantto regularly update the GHG inventory, incorporate those updates into ESG reports, and manage emissions reductions using tools such as those offered by Decarbo’Solution®.

🛠️ Calculation tools and methodologies used

Reliable benchmarks for a credible carbon footprint assessment

Several recognized methodologies are used to measure and categorize GHG emissions:

• The Bilan Carbone® methodology (ADEME): incorporates Scopes 1, 2, and 3
• GHG Protocol: an internationally recognized standard, particularly favored by large organizations such as Amazon and Google, for structuring their Scope 3 emissions reports.
• ISO 14064-1: an international standard for quantifying greenhouse gases, essential for a certifiable process.
• LCA: used to assess a product's carbon footprint throughout its life cycle (from raw material extraction to recycling).

🔍 These frameworks not only help companies meet regulatory requirements (DPEF, CSRD, SNBC), but also strengthen the company’s strategic alignment with regard to its carbon footprint.

Decarbo’Solution®: Practical Solutions to Take Action

To go beyond simple calculations, Decarbo’Solution® offers a modular approach that is compatible with any existing greenhouse gas inventory . It is based on three operational levers:

🔹Decarbo’Target®: Develop an action plan to reduce emissions across the entire carbon footprint. This module allows you to simulate the impact of each action on the various components of the GHG balance sheet and dynamically adjust the decarbonization trajectory.

🔹 Decarbo’Supply®: Engaging suppliers in the process. This module calculatesthe carbon footprint of goods and services (PCF, ISO 14067 standard) to support a shared LCA and responsible procurement.

🔹 Decarbo’Tender®: Incorporating low-carbon considerations right from the bid request stage. The company prioritizes the most committed suppliers and focuses its choices on solutions with the lowest greenhouse gas emissions.

Incorporating Scopes 2 and 3 into Corporate Social Responsibility Strategies

This approach provides companies with a comprehensive view of their value chain and the areas where they can take action. It enables them to:

• To prioritize,
• To engage internal and external stakeholders,
• To develop a CSR strategy aligned with carbon footprint challenges.

💡 It’s also a practical way to meet the growing expectations of partners, customers, employees, and others—and to turn emissions reduction into a competitive advantage.

🧩 Incorporating indirect emissions into environmental policy

Indirect Scope 2 and 3 emissions account for a significant portion of companies’carbon footprints. For an effective CSR strategy, it is essential to include them in the overall carbon footprint assessment.

The national low-carbon strategy encourages organizations to reduce their greenhouse gas (GHG) emissions.

📊 Decarbo’Solution®: A Tool for Managing Indirect Emissions

The Decarbo’Solution® platform offers companies a solution for measuring and reducing their indirect emissions. It enables them to:

• Collect information on energy consumption, product purchases, and downstream transportation.
• Calculate emissions under Scopes 1, 2, and 3, in accordance with ISO standards andADEME recommendations.
• Develop action plans to reducethe carbon footprint, based on life cycle assessment (LCA) analyses.

🏢 Case Studies: A.S.O. and Schmidt Group

A.S.O : évaluer le BEGES des événements sportifs

Amaury Sport Organisation (A.S.O.), the organizer of the Tour de France, used the Decarbo’Solution® platform to calculate the GHG footprint of its events. This initiative made it possible to:

• Identify the main sources ofemissions, particularly those related toenergy and transportation.
• Implement measures to reduce BEGES by optimizing logistics and raising awareness among participants.

Schmidt Group: Engaging Supply Chain Partners in the Low-Carbon Strategy

The Schmidt Group has incorporated Decarbo’Solution® into its low-carbon strategy. Thanks to this tool, the company has:

• Assessed the emissions from its operations, particularly those related to products and the supply chain.
• Worked with its industry partners to adopt recycled materials, thereby reducing CO₂ emissions by 242 metric tons per year for the new 2024–2026 lineup.

Indirect emissions often account for the majority of a company’s greenhouse gas emissions. They are now an essential component of any ambitious and credible strategy to reduce the environmental impact of a company’s operations.

Measuring these emissions —whether they come fromelectricity, purchased goods, or travel—requires rigorous data collection and the use of appropriate tools, such as Bilan Carbone®, ISO standards, or platforms like Decarbo’Solution®.

Incorporating Scopes 2 and 3 into a company’s corporate social responsibility policy means addressing all of the company’s environmental impacts. It also means meeting the requirements of ESG reporting, the CSRD, and the national low-carbon strategy.

Organizations such as A.S.O. and Schmidt Groupe demonstrate that it is possible to manage both direct and indirect GHG emissions in a systematic and ambitious manner. They are paving the way for a concrete and measurable transition.

💡 Reducing greenhouse gas emissions is now a catalyst for profound change. It is not only an environmental issue but also a strategic choice and a commitment to performance and transparency.