Scope 3 reporting is rapidly moving up the corporate agenda as organisations face increasing pressure to measure and manage their full value chain emissions. As corporate sustainability expectations evolve, organisations are being asked to go beyond direct emissions and take greater accountability for their broader environmental impact.
The latest update from the Greenhouse Gas Protocol (GHG Protocol) signals a shift towards more rigorous and standardised approaches to value chain emissions, with several proposed changes that could significantly impact how businesses measure, report, and act on Scope 3 emissions. Keep reading as we delve deeper into the outlined changes.Â
Why Scope 3 reporting matters more than ever
Scope 3 emissions (those generated across a company’s value chain, including supply chains, product use, and end-of-life) often represent the largest share of total emissions. However, they are also the most complex to measure, given their reliance on external data and limited direct control. As a result, improving Scope 3 reporting is becoming central to effective ESG reporting, carbon accounting, and broader sustainability strategies.
A shift towards greater completeness and accountability
One of the most notable proposed changes in the GHG Protocol is the introduction of a 95 percent reporting threshold. Under this update, organisations would be required to account for at least 95 percent of their total Scope 3 emissions to remain compliant. This represents a significant shift from the current guidance, which allows more flexibility in excluding certain categories.
The intention is clear: ensure that the majority of emissions linked to business activities are captured, improving the credibility and robustness of corporate sustainability reporting. For organisations, this increases the need for stronger data collection processes, supplier engagement, and internal coordination.
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Improving data quality and transparency
Another key proposal focuses on strengthening the quality and usability of Scope 3 data. Companies may be required to disaggregate emissions data based on data type, improving transparency around how figures are calculated.Â
This would enhance comparability across organisations and provide clearer insight into the reliability of reported data. For many businesses, this highlights an ongoing challenge within carbon accounting, balancing data availability with accuracy and consistency.
Expanding the scope of value chain emissions
The GHG Protocol is also considering structural updates to Scope 3 categories. A proposed Category 16 would capture additional value chain activities, including facilitated emissions and certain licensing-related impacts. While much of this reporting is expected to remain optional, it reflects the growing complexity of modern business models.
In parallel, proposed updates to Category 15 (investments) clarify that these requirements apply more broadly, not just to financial institutions, signalling a more comprehensive approach to indirect emissions.
What this means for organisations
Together, these changes point to a clear direction: Scope 3 reporting is becoming more detailed, more standardised, and more central to corporate sustainability. Organisations will need to strengthen governance, improve data systems, and engage more closely with suppliers and partners across the value chain. Those that take a proactive approach will be better positioned to manage risk, meet stakeholder expectations, and build long-term resilience.
Looking ahead
While these updates are still under consultation, they reinforce the growing importance of Scope 3 reporting in shaping business strategy. As requirements evolve, organisations must move beyond compliance and focus on building the internal capability needed to respond effectively.
At the Institute of Sustainability Studies, we help organisations build the internal capability needed to manage sustainability effectively, from emissions and ESG reporting to long-term value creation. Discover how our corporate sustainability training solutions support teams in taking action and delivering measurable business results.
Click here to view the Scope 3 Standard progress update.Â
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