Identify and Monitor the GHG Emission under Scope 3 Requirement

GHG Scope 3 Assessment

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For companies in agriculture and land-based sectors such as palm oil, Scope 3 emissions are particularly significant. They include land-use change, fertilizer use and transportation. In many cases, Scope 3 represents the largest share of a company’s overall carbon footprint, often exceeding 70–90 percent.

Accurate Scope 3 reporting is therefore critical for demonstrating transparency, meeting investor and regulatory expectations, and aligning with global standards such as the EU Corporate Sustainability Reporting Directive (CSRD) and the Science Based Targets initiative for Forest, Land, and Agriculture (SBTi FLAG). Beyond compliance, Scope 3 reporting enables companies to identify risks, enhance supply chain traceability, and take meaningful steps toward net-zero commitments

The GHG Protocol Corporate Value Chain (GHG Scope 3 Standard) provides a globally accepted framework for managing Scope 3 emissions. This standard emphasizes the importance of comprehensively assessing and managing GHG-related risks and opportunities throughout a company’s value chain. Companies can prioritize accuracy by using precise data and calculations for activities that significantly contribute to emissions.

Inovasi Digital has developed specialized expertise in the complex field of supply chain traceability. We pride ourselves on employing advanced methodologies, such as the land management unit scale and harvested area scale method. This approach offers unparalleled precision in accounting for the practices of individual suppliers. However, we recognize that not all companies have access to such detailed data sources, particularly those sourcing land-based products. Acknowledging this challenge, we are committed to innovation by developing solutions that address a diverse range of needs.

We have a goal to bridge the gap between data availability and accuracy, ensuring that even companies with limited access to specific data sources can benefit from our expertise. Through strategic partnerships, advanced technology, and a dedication to excellence, we are transforming the landscape of supply chain traceability and sustainability, one step at a time.

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For deeper insights and tailored guidance, reach out to our Director, Ihwan Rafina (ihwan@inovasidigital.asia), or Thematic Manager, Caesar Argo (argo@inovasidigital.asia).