Scope 3 IT Emissions

What Is Scope 3 in IT and Why Does It Matter? 

For many organisations, a significant proportion of the carbon impact associated with technology does not come from the electricity used to run it. 

It sits within the wider value chain. 

The manufacture of laptops, servers, networking equipment and other technology, the services organisations purchase, the transportation of equipment and what happens to assets at the end of their useful life can all contribute to Scope 3 greenhouse gas emissions. 

That makes Scope 3 an important part of understanding the true environmental impact of an organisation’s digital estate. 

The challenge is that these emissions are often much harder to see, measure and influence than the energy consumed directly by the organisation. 

What Are Scope 1, Scope 2 and Scope 3 Emissions? 

Greenhouse gas emissions are commonly grouped into three scopes. 

Scope 1 covers direct emissions from sources an organisation owns or controls. 

Scope 2 covers indirect emissions associated with purchased energy, such as the electricity used to power offices, data centres and technology. 

Scope 3 covers other indirect emissions across the organisation’s value chain. 

For IT and digital operations, Scope 3 can be particularly important because much of the environmental impact of technology occurs outside the organisation’s direct operational control. 

An organisation may purchase and use a laptop, for example, but emissions have already been generated through the extraction of materials, manufacturing, assembly and transportation before that device reaches the employee. 

Understanding those emissions gives organisations a much more complete picture of the environmental impact associated with technology. 

Where Do Scope 3 Emissions Come From in IT? 

IT Scope 3 emissions can arise across the technology lifecycle. 

Depending on the organisation and its digital estate, sources may include: 

• Manufacturing laptops, desktops and mobile devices 

• Servers and data centre equipment 

• Networking and communications equipment 

• Displays, peripherals and other hardware 

• Purchased software and technology services 

• Cloud and outsourced technology services 

• Transportation and distribution 

• Business travel associated with technology operations 

• Disposal, recycling and treatment of electronic equipment 

• Other activities within the technology supply chain 

The exact profile will differ between organisations. 

A business with a large physical technology estate may have a very different footprint from an organisation heavily dependent on cloud and outsourced digital services. 

The important first step is understanding where the significant sources are likely to sit. 

Why Is Scope 3 Harder to Measure? 

Scope 1 and Scope 2 emissions are often linked to activities for which the organisation has relatively accessible information. 

Scope 3 is different because much of the underlying activity happens elsewhere. 

The organisation may know that it purchased 500 laptops, but not have detailed information about the carbon emissions associated with manufacturing each model. 

It may know how much it spends with a technology supplier without having product-level emissions data. 

Asset information may also sit across procurement systems, IT asset management platforms, finance records, spreadsheets and supplier documentation. 

This creates a data challenge. 

But a lack of perfect information does not mean an organisation cannot begin. 

Different data sources and estimation methods can be used to establish an initial view, with accuracy improving as better information becomes available. 

We explore this separately in Do You Need Perfect Data to Start Measuring IT Carbon? 

Why Does IT Scope 3 Matter? 

If an organisation focuses only on the electricity used to operate technology, it can miss a substantial part of the environmental impact created by its digital estate. 

That can affect the quality of carbon reporting and the decisions being made from it. 

For example, replacing older equipment with newer, more energy-efficient technology may reduce operational energy consumption. 

But manufacturing the replacement equipment also creates carbon emissions. 

The better decision therefore depends on the full picture. 

In some cases, retaining an existing asset for longer may have a lower overall carbon impact. In others, replacing inefficient equipment may deliver greater benefits. 

Understanding Scope 3 helps organisations consider those trade-offs rather than focusing on operational energy in isolation. 

How Does Scope 3 Connect With IT Procurement? 

Many Scope 3 emissions are influenced by purchasing decisions. 

What technology is bought, how much is purchased, which suppliers are selected and how frequently assets are replaced can all affect the organisation’s carbon footprint. 

That means procurement teams can play an important role in digital sustainability. 

Useful questions include: 

• Do we need to purchase this equipment? 

• Are existing assets being fully utilised? 

• Can equipment remain in service for longer? 

• Do we understand the carbon impact of different products? 

• Can suppliers provide useful environmental data? 

• Are sustainability criteria included in technology procurement? 

• What happens to equipment when it leaves the organisation? 

• Are purchasing decisions considering both cost and carbon? 

Scope 3 measurement becomes more valuable when it informs these decisions rather than existing purely as a reporting exercise. 

Why Does Asset Lifecycle Matter? 

The environmental impact of technology begins before an asset arrives and continues after it leaves. 

That makes lifecycle thinking particularly important. 

An organisation that automatically replaces laptops every three years, regardless of their condition or performance, may be creating unnecessary procurement, carbon emissions and electronic waste. 

Extending useful asset life where appropriate can reduce the frequency with which new equipment needs to be manufactured and purchased. 

Better visibility of assets can also identify equipment that is unused, underutilised or unnecessarily retained. 

The relationship between asset lifecycle, carbon and electronic waste is explored in more detail in How Can IT Asset Lifecycle Management Reduce Carbon and Waste? 

Can Reducing Scope 3 Emissions Reduce Costs? 

Often, the same decisions that reduce unnecessary Scope 3 emissions can also reduce technology expenditure. 

Buying fewer unnecessary assets, improving utilisation, extending useful equipment life and making more informed replacement decisions can reduce procurement costs as well as environmental impact. 

That does not mean every lower-carbon decision will automatically be cheaper. 

It does mean carbon and cost should not be treated as completely separate conversations. 

Understanding the environmental impact of technology can reveal inefficiencies that also have a financial cost. 

We explore that relationship further in Can Reducing IT Carbon Also Reduce Technology Costs? 

Why Are Customers and Procurement Teams Asking About Carbon? 

An organisation’s Scope 3 emissions include emissions generated within its supply chain. 

That means one organisation’s emissions can form part of another organisation’s carbon footprint. 

As larger organisations and public sector bodies work towards environmental and carbon reduction commitments, they may increasingly need information from the businesses that supply them. 

Technology suppliers and other SMEs can therefore find themselves being asked for: 

• Environmental policies 

• Carbon emissions information 

• Reduction plans or targets 

• Evidence of environmental management 

• Sustainability information during tenders 

• Supplier-specific environmental data 

For some organisations, understanding carbon emissions is therefore becoming part of demonstrating supplier readiness as well as meeting internal sustainability objectives. 

Is Scope 3 Only a Sustainability Team Issue? 

No. 

Sustainability teams may lead carbon measurement and reporting, but many of the decisions that influence IT emissions happen elsewhere. 

IT teams determine technology requirements. 

Procurement influences suppliers and purchasing. 

Finance controls investment. 

Asset management teams understand what equipment exists and how it is being used. 

Facilities and infrastructure teams may influence energy consumption. 

Leadership determines priorities and investment. 

Reducing IT carbon therefore requires better information to connect these decisions. 

That is why digital sustainability works best when it becomes part of technology governance rather than operating as a separate reporting exercise. 

Where Does COzPro Fit? 

COzPro helps organisations build a clearer picture of the carbon impact associated with their IT and digital estates. 

By bringing technology and carbon data together, organisations can move beyond high-level reporting and begin to understand where emissions sit across assets, infrastructure and digital operations. 

That visibility can support more informed decisions around procurement, utilisation, replacement and lifecycle management. 

It can also help organisations improve their carbon data over time rather than waiting until every source of information is complete. 

Start by Understanding Where the Impact Sits 

Scope 3 can appear complicated because the emissions extend beyond the organisation’s direct control. 

But organisations do not need to solve every data problem before they can make progress. 

Start by understanding the technology estate, identifying the most significant sources of emissions and establishing where better information could improve decisions. 

From there, carbon measurement can become something more useful than a reporting requirement. 

It can help organisations make better choices about what they buy, how long they use it and where carbon and cost can be reduced together. 

Talk to KA2 about understanding and reducing the Scope 3 carbon impact of your IT and digital estate.