GHG Protocol has released a progress update outlining proposed revisions to its Scope 3 Standard, aimed at enhancing corporate measurement and reporting of value chain emissions.
Key proposals include:
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A new requirement for companies to report at least 95% of total Scope 3 emissions to ensure greater completeness and compliance
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Introduction of a new “Category 16”, covering additional value chain activities such as facilitated emissions and licensing-related activities
Established in 1997 by the World Resources Institute and the World Business Council for Sustainable Development, the GHG Protocol provides globally recognized frameworks for measuring and managing emissions. Its standards are widely embedded in major frameworks, including those developed by the IFRS Foundation and the European Sustainability Reporting Standards (ESRS) under CSRD.
Scope 3 emissions—arising activities such as supply chains and product use—typically represent the largest share of a company’s carbon footprint yet remain the most complex to measure due to their indirect nature. Since its initial release in 2011, the Scope 3 Standard has included 15 categories covering a wide range of value chain activities.
The proposed revisions, currently under development by Technical Working Groups, focus on:
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Improving data quality, transparency, and comparability
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Refining boundary setting and category definitions
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Updating investment-related reporting (Category 15)
A notable proposal includes requiring companies to disaggregate Scope 3 emissions by data type, enabling better transparency and consistency in reporting. The introduction of the 95% reporting threshold aims to ensure that all significant emission sources are captured, while allowing minor exclusions of up to 5% to optimize reporting efforts.
Additionally, Category 16 is proposed to capture emissions from activities where companies have economic involvement without ownership, such as facilitated or licensing-related emissions, with reporting largely expected to be optional.
Further changes to Category 15 (Investments) would clarify its applicability across all companies and refine its scope, retaining financed emissions while shifting certain financial services activities to the new Category 16.
These updates are part of a broader initiative by the GHG Protocol to strengthen its standards, with a draft version expected to be released for public consultation soon. Parallel updates to Scope 2 guidance are also under consideration.
