Scope 3 emissions are indirect emissions (not included in Scope 2) embedded throughout a company's value chain. These can be upstream, such as the indirect emissions fuelled by a company's supply chain, or downstream, via the emissions generated by the use of a company's products and services. Scope 3 emissions can account for up to 90% of the total carbon impact within a business. Getting detailed data on Scope 3 emissions is therefore essential to understanding the transition risks that business faces, to improve visibility within investment portfolios and to enable companies and investors to make informed commercial decisions. Omitting scope 3 from contracting or portfolio analysis risks claims of greenwashing but also risks costly mispricing of assets.

Our market opportunity is to create a platform to provide detailed carbon analytics, including scope 3 for unlisted equities and SMEs. Our project creates a due dilligence product, that will provide detailed and accurate scope 3 assessments for unlisted assets for use in commercial appraisals, monitoring of supply chains and to conduct sustainability due dilligence. We will achieve this by combining data consolidation and data in-filling techniques, with Scope 3 estimation approaches employed for listed equities.

As a result our project will demonstrate how we can link the detailed datasets for unlisted equities and SMEs with robust estimation and validation techniques to fill the critical gap in carbon intensity data.