Scope 3 Standard

Verra’s Scope 3 Standard (S3S) Program will help companies address their Scope 3 supply chain emissions and targets through the following:

• Robust rules and requirements for the implementation of value chain projects and the issuance of corresponding units
• Consistent and transparent accounting and measurement, reporting, and verification (MRV) procedures for value chain projects using standardized and sector-specific GHG quantification methodologies
• Assurance of GHG emission reductions and carbon dioxide removals via Verra’s accessible and robust third-party auditing and certification system
• The transparent issuance and tracking of Scope 3 Units (S3Us) to project proponents and reportable units to companies that demonstrate a “right-to-report” (R2R) through the publicly available Verra Registry
• The facilitation of co-investment in Scope 3 projects based on third-party verification of a company’s right-to-report

Pressure from investors and regulators, environmental and business risks, and voluntary target-setting initiatives (e.g., Science Based Targets initiative) are driving companies to abate their Scope 1, 2, and 3 emissions in line with what climate science deems necessary to limit global warming to 1.5^oC above preindustrial levels.

Scope 3 value chain emissions often represent the majority of a company’s emissions abatement targets and are therefore critical to reduce. Scope 3 emissions are also known as a company’s indirect emissions, or value chain emissions. They are not directly produced by the company, but arise from activities upstream and downstream in its value chain (e.g., from the upstream production and transportation of materials used in its production processes or the downstream use of its products).

While efforts to abate Scope 3 emissions are growing exponentially, several critical accounting and reporting challenges are preventing significant investment in Scope 3 projects. Stakeholders are seeking greater assurance, transparency, and standardization in the accounting and reporting of value chain projects, as well as the supporting infrastructure for tracking the corresponding units that represent the impact of these projects.

Verra is developing the S3S Program to address these challenges and gaps, and to provide the rigorous accounting and reporting of value chain projects that can help unlock immediate and large-scale investment in value chain climate action.

Verra’s Scope 3 Standard Program will enable companies to take impactful and credible value-chain climate action. By offering a consistent approach to addressing value chain emissions (which often represent more than 75% of total corporate emissions) the program fills a critical market gap, helping companies scale up efforts to mitigate their carbon footprint.

Verra now invites sponsors to support the development of this program.

If you are interested in being a trailblazer and supporting the development of the Scope 3 Standard Program email the Scope 3 team.

The initial two versions of S3S Program will accomplish the following:

• Version 1.0 of the S3S Program will enable project proponents to apply standardized GHG quantification methodologies to certify and issue S3IUs representing the GHG benefits of projects in value chains projects. Version 1.0 will also address the auditing, ownership, management, and tracking of S3IUs. Version 1.0 will be launched in two phases—see the timeline below.
• Version 2.0 of the S3S Program will issue S3IUs units to reporting companies with a demonstrated right-to-report. A company’s right-to-report will be assessed based on a feasible value chain connection between a reporting company and the impacted product (e.g., commodity crops, textiles, concrete) in a value chain project.