Which statement best describes Scope 3 emissions?

Scope 3 emissions encompass all indirect greenhouse gas emissions that occur in a company's value chain, excluding those accounted for in Scope 2 emissions. This category is significant because it captures the broader environmental impact of a company’s operations, including aspects like the extraction and production of purchased materials, transportation, waste disposal, and even the emissions associated with the use of sold products.

Understanding Scope 3 emissions is crucial for organizations aiming to have a comprehensive view of their carbon footprint and for implementing strategic measures to mitigate climate impacts throughout their entire supply chain, which often represents the majority of an organization’s overall emissions. This acknowledges that a company's environmental impacts extend far beyond its own direct operations and energy consumption.

The other statements do not accurately represent the full scope and intent of Scope 3 emissions. The focus of Scope 3 is on indirect emissions throughout the value chain, rather than being limited to owned sources or specific waste management practices.