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Scope 3 Explained: Helping Investors Take Action on the Value Chain Emissions of Investments

Scope 3 Explained: Helping Investors Take Action on the Value Chain Emissions of Investments

Year Published

2024

Contributing Organizations

Institutional Investors Group on Climate Change (IIGCC)

Type of Resource

Research/Insights Report

Languages

English

Relevant Topics

Core Topic
Disclosure Standards
Topic 2
Carbon Accounting

Target Audience

Asset Owners
Asset Managers
Financial Services Providers
Advisors & Consultants
Real Economy Corporates

Relevant Geography

Global
Scope 3 Explained: Helping Investors Take Action on the Value Chain Emissions of Investments

Resource Description

This resource explains the importance of Scope 3 emissions in investment portfolios and offers guidance for investors on addressing value chain emissions under net zero strategies.

Why This Matters

Scope 3 emissions are critical to fully assessing climate impact and aligning portfolios with net zero goals, despite data and methodology challenges.

Key Insights

  • Scope 3 emissions, including those from product use and supply chains, are often the largest and hardest to measure
  • Accurate Scope 3 data is limited, making portfolio-level aggregation difficult and potentially misleading
  • Net zero frameworks recommend setting targets for Scope 1, 2, and 3 emissions
  • Understanding Scope 3 helps investors identify transition risks and engage companies more effectively

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