CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Environment
Anand Cements Ltd. buys clinker from a supplier and its products are transported by third-party trucking firms. The board wants to know where emissions from the transport of its sold goods by those trucks fall under the GHG Protocol.
Emissions from third-party trucks carrying the company's goods are Scope 3. They are indirect value-chain emissions from sources the company neither owns nor controls and are not purchased energy, so Scope 1 and Scope 2 do not apply.
- AScope 1
- BScope 2
- CScope 3, as an indirect value-chain emissionCorrect
- DOutside all scopes because the trucks are not owned
Explanation
Emissions from vehicles not owned or controlled by the company, occurring in its value chain, are Scope 3. They are not Scope 1 because the company does not own the trucks. They are not Scope 2 because they are not purchased energy.
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