Scope 3 Corporate Value Chain Inventories & Strategy

Unlock the 90% of Emissions Hidden in Your Supply Chain.

For most companies, Scope 1 & 2 are just the tip of the iceberg. The real risk lies in Scope 3. We help you measure, manage, and reduce the emissions from your suppliers, logistics, and product lifecycle to meet Bursa Malaysia and IFRS S2 requirements.

Start Your Scope 3 Assessment

What Is Scope 3 Value Chain Inventory?

Scope 3 Inventory is the accounting of all indirect emissions that occur in a company’s value chain, covering 15 specific categories defined by the GHG Protocol. This includes Upstream activities (purchased goods, business travel, waste generated) and Downstream activities (transportation of sold products, use of sold products, end-of-life treatment). It is the most complex but critical part of ESG reporting, often representing over 70-90% of a company's total carbon footprint.

Why You Need This Now

Scope 3 is no longer "optional." The regulatory net is tightening, and financial access is being restricted.

• Bursa Malaysia & IFRS S2 Mandate: Bursa Malaysia is adopting the ISSB (International Sustainability Standards Board) standards. Under IFRS S2, disclosure of Scope 3 emissions is becoming mandatory. Failure to report means non-compliance with listing requirements.
• The "Supply Chain Purge": Multinational Corporations (MNCs) and large PLCs are aggressively auditing their suppliers. If you cannot provide your carbon data to your clients, you will be delisted as a vendor. They cannot report their Scope 3 if you don't report your Scope 1 & 2.
• Banking "Financed Emissions": Banks (CIMB, Maybank, RHB) must report the carbon footprint of their loan portfolio (which is their Scope 3). If your business is "carbon blind," you are a high-risk borrower, leading to higher interest rates or loan rejection.
• Export Barriers: While CBAM currently focuses on direct emissions, the EU is moving toward full value chain transparency. Without a Scope 3 strategy, your products risk being locked out of green supply chains.

What You Will Receive (The Deliverable)

Scope 3 is notorious for being "data-heavy." We turn that chaos into structured, audit-ready products.

1. Scope 3 Inventory Report: A complete calculation of applicable categories (out of the 15 GHG Protocol categories), fully compliant with ISO 14064-1 and GHG Protocol Corporate Value Chain Standard.
2. Supplier Engagement Framework: A "Productized SOP" and templates for you to send to your vendors to collect their carbon data accurately, replacing guesswork with primary data.
3. Hotspot Analysis & Reduction Roadmap: We identify exactly which part of your value chain (e.g., raw material transport vs. employee commuting) is the biggest polluter and provide engineering strategies to reduce it.
4. ESG Data Pack for Reporting: Consolidated data tables ready for insertion into your Annual Sustainability Statement or CDP disclosure.

Meet Your Sustainability and Carbon Solution Expert

Fad Razak

Principal Consultant

• Certificate in Carbon Taxation, United Nations Institute for Training and Research (UNITAR).
• Certificate in Sustainable Finance, United Nations Institute for Training and Research (UNITAR).
• Certificate in Advancing in REDD+, United Nations Institute for Training and Research (UNITAR).
• Specializing in carbon sequestration strategies and carbon offsets.
• Certificate in Circular Economy, MGTC Malaysia.
• Certificate in Sustainability Management, University of Nottingham.
• Certificate in Energy Audit & Energy Management for Building, SEDA Malaysia.

Map Your Value Chain Emissions

Frequently Asked Questions (FAQ)

1. Is Scope 3 mandatory for my company?
   If you are a Main Market Listed Issuer on Bursa Malaysia, you are facing a phased mandatory timeline under the new sustainability reporting requirements (aligning with IFRS S2). If you are an SME, it is likely mandatory via contractual pressure from your big clients.
2. Scope 3 has 15 categories. Do we have to report all of them?
   Not necessarily. We perform a "Materiality Assessment" first to determine which categories are relevant to your business. For example, a software company might not have "Downstream Transportation," but a logistics company definitely does.
3. Our suppliers don't have carbon data. How do we calculate this?
   This is common. We use a hybrid approach. We start with "Spend-Based" emission factors (using financial data) to get a baseline estimate. Then, we help you transition to "Activity-Based" data by engaging your top 80% suppliers.
4. How accurate does the data need to be?
   For the first year, estimates using recognized databases (like IPCC or DEFRA) are acceptable. However, auditors will expect you to improve data quality (move from secondary to primary data) year over year.
5. Can you help us get data from our suppliers?
   Yes. We provide the "Supplier Data Collection Templates" and can even conduct training workshops for your vendors to teach them how to provide the data you need.
6. Does Scope 3 include Employee Commuting?
   Yes. Category 7 covers employee commuting. We can launch a digital survey to your staff to calculate the emissions based on their travel distance and vehicle type.
7. What is the difference between Scope 3 and Life Cycle Assessment (LCA)?
   Scope 3 is organization-level (annual corporate footprint). LCA is product-level (footprint of one specific widget). We offer both, but this service focuses on the corporate level.
8. How long does a Scope 3 inventory take?
   Because it involves external parties (suppliers), it takes longer than Scope 1 & 2. Typically, a full Scope 3 screening and calculation takes 3 to 5 months.
9. Can we reduce Scope 3 emissions?
   Yes. Strategies include switching to local suppliers (less transport), choosing suppliers with green energy, optimizing logistics routes, and redesigning products for lower material weight.
10. Why choose Techikara Engineering?
    We are engineers with 10 years of experience. Scope 3 requires handling massive datasets and understanding complex industrial supply chains. We provide the technical rigor that generalist consultants lack.