Why SMEs Need to Know About Scope 3
Scope 3 refers to indirect carbon emissions across a company's entire value chain. Large companies' Scope 3 includes carbon emissions from their suppliers' (SMEs') manufacturing processes.
As of 2026, major Korean corporations including Samsung, Hyundai, SK, and LG have begun requesting carbon emission data from suppliers. This is driven by EU CBAM and CSRD requirements forcing export-oriented companies to manage supply chain emissions.
Failing to respond risks losing business relationships; proactive response secures new opportunities.
Scope 1, 2, 3 Distinction
Data SMEs provide to large companies is mainly Scope 1+2 (own emissions), which becomes part of the large company's Scope 3.
5-Step Practical Response
Step 1: Identify Emission Sources
Document your energy usage: electricity (kWh from utility bills), gas (Nm3), fuel (liters), and process gases.
Step 2: Calculate Emissions
Apply emission factors to calculate CO2 equivalent (tCO2eq) for each source.
Step 3: Systematize Data
Build a monthly/equipment-level emissions database using spreadsheets or carbon accounting platforms.
Step 4: Prepare for Verification
Large companies may require third-party verification. Systematically archive source data including utility bills and fuel purchase records.
Step 5: Develop Reduction Plans
Going beyond reporting, establishing annual reduction targets and action plans earns higher scores in large company evaluations.
Contact KITIM
KITIM provides professional support for carbon emission calculation, supply chain ESG response, and reduction strategy development. Contact us through [KITIM Contact](/contact).