What is Scope3?
Scope3—The hidden emissions
Corporate greenhouse gas emissions are captured in three categories: Scope1, Scope2, and Scope3.
Scope1 comes from direct emissions from factories and company vehicles.
Scope2 comes from purchased electricity and heat.
Scope3 covers emissions outside the company caused by its business, including raw material procurement, manufacturing outsourcing, logistics, product use, and disposal.
Scope3 represents the majority of corporate emissions.
In many industries, 70–90% of emissions are from Scope3, meaning achieving real decarbonization requires addressing the entire value chain.
Challenges and importance of tackling Scope3
Investors now consider corporate Scope3 data a required metric for ESG evaluation.
Suppliers demand Scope3 reductions as a condition for green procurement, and consumers are beginning to ask, “What is the true environmental impact of this product?”
However, addressing Scope3 is not easy.
Emission data is scattered across the supply chain, standards vary by country and company, and unreliable information circulates.
Scope3 has the largest reduction potential while being the most challenging area for companies.
The birth of "SCOPE 3 Neo"
SCOPE 3 Neo was born to tackle this challenge head-on.
Here, only “raw materials that can truly prove their sustainability” gather.
Compliant with international standards like ISO 14067 and the GHG Protocol, it provides a transparent platform backed by government data and academic research, enabling buyers and suppliers to connect with confidence.
SCOPE 3 Neo aims to become the new standard in raw material sourcing, creating a society where environmental consideration is not a “special choice” but the “obvious choice.”
Our vision
SCOPE 3 Neo is more than just a procurement platform.
It is a hub where environmental standards and projects from around the world converge, enabling companies to reference them while determining their own policies and product development.
We believe that by properly visualizing Scope3 and integrating it into transactions in a trustworthy manner, supply chains will transform and society as a whole will move toward sustainability.
SCOPE 3 Neo—the global foundation for Scope3 reduction.
We are confident its existence will become the new infrastructure that builds the future.
Features of SCOPE 3 Neo
A strictly reviewed B2B matching platform
Only companies meeting sustainability criteria can participate in SCOPE 3 Neo.
They are pre-screened for CO₂ reduction initiatives, use of circular materials, and transparency, ensuring only reliable buyers and suppliers gather.
All products and ingredients listed are backed by environmental consideration.
Transparency based on credible data
SCOPE 3 Neo prioritizes making environmental information transparent.
Emissions and reduction quantities are designed with compliance to international standards like ISO 14067 and the GHG Protocol in mind. Data utilizes public databases certified by national government agencies, and we maintain a transparent process by referencing academic research.
Only information with clear, verifiable sources underpins the reliability of transactions.
Transactions directly linked to Scope3 reduction
SCOPE 3 Neo raw materials have CO2 absorption from agroforestry cultivation linked as “reductions,” enabling certificate issuance. While using conventional raw materials adds their CO2 emissions to Scope 3, SCOPE 3 Neo's raw materials uniquely achieve negative Scope 3 emissions through these reductions.
Buyers can select raw materials based not only on “price” but also on their “environmental contribution,” while suppliers can quantitatively demonstrate the added value of sustainable raw materials.
Each individual raw material choice directly translates into Scope 3 reduction actions—this is the greatest value of SCOPE 3 Neo.
Role as an international hub
SCOPE 3 Neo is more than just a platform for sourcing materials.
In the future, it aims to function as a hub that aggregates international standards like Scope 3, ISO, SBTi, and Verra, along with the latest environmental projects.
By gathering insights and data here and creating an environment where they can be utilized, companies will be able to advance their procurement and product development more swiftly and reliably while referencing the latest global trends.
The first step — Agroforestry
SCOPE 3 Neo's first initiative is agroforestry, which combines forestry and agriculture. The Tomeas-style agroforestry method involves planting fruit trees, timber seedlings, and crops on degraded land in the Amazon.
Conventional farming practices involving LUC (Land Use Change) result in net emissions of approximately 7.04 kgCO₂e/kg per kg of acai and about 25.01 kgCO₂e/kg for cacao [1]. In contrast, agroforestry methods that restore degraded land without LUC have been found to reduce emissions to just about 1.52 kgCO₂e/kg. [2]
What is https://www.frutafruta.com/fruit/agroforestry/?
This farming method expands new forest areas without resetting land, enabling carbon absorption to be calculated as net absorption. In other words, it holds the potential not just to achieve zero net emissions, but to reach negative net emissions (net negative).
[1] https://www.mdpi.com/2813-2432/4/2/8
[2] Net emissions = On-farm emissions 1.20 kgCO2e/kg ([1]) + Off-farm emissions (transport) 0.32 kgCO2e/kg (estimated from Frutta Frutta's proprietary survey)
Green Tech Agriculture: Absorbing While Growing
In agroforestry practices, organic residues such as pruned branches, fallen leaves, and thinned timber are generated. Biochar is produced by carbonizing these materials under low-oxygen conditions instead of burning them. This biochar represents a natural carbon sequestration mechanism arising from within agroforestry itself. When returned to farmland, it enables carbon lock-in for hundreds of years.
Soil becomes richer, water and microbial cycles strengthen, and simultaneously, carbon is fixed rather than returning to the atmosphere. Through this “absorbing while nurturing” cycle, SCOPE 3 Neo aims to go beyond mere carbon neutrality, constantly achieving net negativity (a state where absorption exceeds emissions).
Protecting forests while growing carbon, regenerating the Earth. That is the symbol of the future envisioned by SCOPE 3 Neo.
Features of SCOPE 3 Neo
Scope3 boundaries — 15 categories
GHG Protocol divides Scope3 into 15 categories.
This organizes emissions outside direct control into upstream and downstream.
Upstream (procurement/production):
Purchased goods/services, capital goods, fuel/energy activities, transport/delivery, waste, business trips, employee commuting.
Downstream (use/disposal):
Product transport/delivery, usage emissions, disposal, leased assets, franchise, investments.
Scope3 requires collaboration and common standards across the value chain, as company efforts alone are insufficient.
Calculation method overview
SCOPE 3 NEO calculates Scope 3 emissions using the following formula:
Scope 3 Emissions = Emission Factor − Absorption Factor
Scope 3 Reduction Equivalent = Base Net Emissions − Scope 3 Emissions
・Emission Factor: Calculated from production volume [kg/ha] and on-farm/off-farm emissions [kgCO₂e/ha]
・Absorption Coefficient: Sum of carbon absorption from existing forest land + new forest land
・Base Net Emissions = On-farm and off-farm emission coefficients per tree species + LUC emission coefficient (forest conversion emissions) + Absorption coefficient per tree species
In this way, SCOPE 3 NEO enables quantitative comparison between conventional farming and agroforestry.
Compliance with international standards
SCOPE 3 NEO's Scope 3 calculations comply with both ISO 14067 (product carbon footprint) and the GHG Protocol (the global standard for enterprise-wide greenhouse gas accounting).
・ISO 14067: Clarifies emissions on a raw material basis
・GHG Protocol: Integrates company-wide emissions management across Scope 1, 2, and 3
Combining these two approaches simultaneously ensures both the “contribution level related to raw material procurement” and the “company-level contribution level” in CO2 reduction efforts.
Transparency of data sources
SCOPE 3 Neo data is obtained based on field surveys and fixed-point observations at actual raw material production sites.
We continuously record actual measurements such as farmland area, tree species composition, and diameter at breast height (DBH), updating primary data on carbon sequestration and emission factors for agroforestry farming methods.
This ensures reproducibility and verifiability based on real, field-rooted data rather than desk-based estimates, enabling more accurate Scope 3 calculations.
Future expansion areas
SCOPE 3 Neo envisions expanding beyond its agri-forestry origins into a platform encompassing diverse raw materials and production regions.
Currently handling data on fruit trees, timber, crops, and other resources produced through forest-regenerative farming, it will eventually enable quantitative assessment of carbon balances across production processes for a wider range of primary resources. These include regenerative agriculture, marine biomass, algae cultivation, natural-derived materials, and mineral/building material raw materials.
This expansion will enable comparisons of emissions and absorption data across different raw materials, establishing a foundation for cross-industry Scope 3 reduction. By accumulating data from production projects worldwide on SCOPE 3 Neo, we aim for a future where companies and researchers globally can utilize it as a “common platform for comparing and sharing environmental value on a raw material basis.”
SCOPE 3 Neo will evolve into a platform that visualizes the lifecycle of all raw materials and connects global Scope 3 reduction efforts.