Net Zero and Scope 3 Guide: Measure the Full Footprint, Set Targets That Hold Up, Cut Emissions Across the Value Chain
A practical guide for Indian sustainability heads and CFOs, updated for SBTi Version 2.0, the planned GHG Protocol and ISO merger, India’s 2035 NDC and the Carbon Credit Trading Scheme: Scope 1 and 2 done well, all 15 Scope 3 categories, data methods, targets, levers, carbon prices and capex, and what eight companies in the TERRA Above Average band report. With three free templates.
What the guide covers
- Net zero, honestly
- Net zero and Scope 3 by numbers
- The rules in one page
- Scope 1 and 2 done well
- Scope 3: the 15 categories
- Scope 3 data in practice
- Targets that hold up
- Levers that cut emissions
- Money: carbon prices and capex
- Best cases from TERRA
- Case: measuring at the source
- Eight common weaknesses
- A 12-step net zero plan
- Checklist for boards and CFOs
- Glossary
Free templates
Net Zero and Scope 3 Workbook (Excel)
Scope 1 and 2 calculator with the CEA grid factor, a 15-category Scope 3 screen, an SBTi 40% and 67% check, a target pathway, abatement levers ranked by cost per tonne, and an internal carbon price calculator.
Net Zero Transition Plan (Word)
A board-ready template: boundary and base year, footprint, targets, levers, value chain engagement, finance, governance, risks and reporting.
Supplier Emissions Data Request (Word)
A cover letter and short form to collect energy, Scope 1 and 2 data and targets from key suppliers, with an offer of support.
Net zero and Scope 3 by numbers
CDP found supply chain emissions average 26 times direct operations. 1,245 of the world’s 2,000 largest listed companies have net zero targets, but only 7% meet Net Zero Tracker’s integrity criteria. India’s grid emission factor was 0.710 tCO₂ per MWh in FY2024-25, and 490 entities now have targets under India’s carbon market.
The rules in one page
| Rule | As of September 2026 |
|---|---|
| GHG Protocol | Corporate and Scope 3 Standards stay in effect. A consolidated GHG Protocol and ISO 14064-1 standard is expected for public consultation in Q2 2027. |
| SBTi | Criteria V1.3.1: Scope 3 target needed if Scope 3 is 40% or more of total; near-term Scope 3 targets cover at least 67%, long-term 90%. V2.0 (11 June 2026) is optional from Q1 2027 and mandatory after 31 January 2028. |
| SEBI BRSR | Scope 1 and 2 are essential indicators and part of BRSR Core; Scope 3 is a voluntary leadership indicator. |
| India’s 2035 NDC | 47% cut in emissions intensity of GDP from 2005; 60% non-fossil power capacity; net zero by 2070. |
| Carbon Credit Trading Scheme | Intensity targets for 490 entities in eight sectors; trading had not started by early September 2026. |
| CEA grid factor | 0.710 tCO2 per MWh for FY2024-25. |
Scope 3: the 15 categories
Screen all fifteen, explain any exclusion, then measure the three to five that dominate with better data. Spend-based estimates are a start, but only supplier-specific data lets real supplier improvements show up in your numbers.
Best cases from TERRA
| Company | Scope 3 share | What their reports show |
|---|---|---|
| Hindustan Unilever | ~98% | Net zero 2039; 100% renewable electricity; all factories coal-free |
| HCLTech | ~76% | Net zero 2040, SBTi-validated; Scope 1 and 2 down 55.84%, Scope 3 down 9.56% |
| Infosys | ~79% | Carbon neutral across Scopes 1, 2 and 3 since 2020 (FY2024-25 data) |
| Ashok Leyland | ~66% | Net zero 2048; 77% renewable energy; Scope 3 not yet assured |
| ABB India | ~99.9% | About 97% of Scope 3 from use of sold products; group SBTi targets |
| Dalmia Bharat | ~8% | Carbon negative by 2040 (conditional); 46% renewable energy |
| Tata Steel | ~29% | Net zero 2045; scrap-based EAF; internal carbon pricing framework |
| Persistent Systems | partial | SBTi-approved targets; Scope 3 covers six categories |
A 12-step net zero plan
- Set the boundary and base year
- Measure Scope 1 and 2 with good data
- Screen all 15 Scope 3 categories
- Find the hotspots
- Set near-term targets
- Switch to renewable electricity
- Cut fuel use: efficiency and electrification
- Engage top suppliers on data and targets
- Redesign products and logistics
- Put a price on carbon in investment decisions
- Report in BRSR and CDP; get assurance
- Neutralise only residual emissions, at the end
Cite or share this guide
Companies, industry associations, consultants, NGOs and universities are welcome to link to this page, add it to training material, and embed the infographics. Please link to this page rather than the PDF, so readers always get the latest edition.
Questions
Is the Net Zero and Scope 3 Guide free?
Yes. The guide, the Net Zero and Scope 3 Workbook (Excel) and the two Word templates are free to download without a sign-up, and free to share or adapt with credit to Earth5R.
What is Scope 3?
Scope 3 covers all indirect emissions in a company’s value chain other than purchased energy, in 15 categories defined by the GHG Protocol, from purchased goods and services to the use and disposal of sold products. For most companies it is the largest share of the footprint.
Do Indian listed companies have to report Scope 3?
Not yet. In SEBI’s BRSR, Scope 1 and 2 are essential indicators and part of BRSR Core; Scope 3 is a voluntary leadership indicator. Many large companies report it anyway because investors and customers ask.
When does a company need a Scope 3 target under SBTi?
Under SBTi Criteria V1.3.1, if Scope 3 is 40% or more of total emissions, near-term targets must include Scope 3 and cover at least 67% of it. SBTi’s Corporate Net-Zero Standard V2.0, released on 11 June 2026, becomes mandatory after 31 January 2028.
What is India’s grid emission factor?
The Central Electricity Authority’s CO2 Baseline Database V21.0 gives a weighted average of 0.710 tCO2 per MWh for FY2024-25.
Can carbon credits be used to reach net zero?
Under recognised net zero standards, credits and removals can neutralise only residual emissions after deep cuts, or fund action beyond the value chain. They cannot replace reductions.
Can I use the infographics on my website?
Yes. Each infographic on this page has embed code. Please keep the credit link to this page.
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