Scope for improvement: why oil & gas needs to address scope 3 emissions

Scope 3 emissions, also known as value chain emissions, typically account for the vast majority of a company’s overall GHG impact. However, the oil and gas industry has focused primarily on reporting and mitigating only scope 1 and 2 emissions within its operations. However, more countries are evaluating mandatory scope 3 reporting, and other avenues for action are gaining traction, including climate litigation and requiring climate transition plans. In this Insight, we explore the following topics: - What are scope 3 emissions and how are emissions split across the oil and gas value chain. - Companies' attitudes towards scope 3 and how these have changed in recent years. - Challenges of tackling scope 3 in the oil and gas industry. - Recent policy indicators that may shift companies from avoidance to acceptance of scope 3.