Scope 4 emissions, also known as avoided emissions, refer to reductions in greenhouse gases (GHG) emissions that occur outside a company's value chain as a result of the use of its products or services. Unlike the traditional scopes defined by the GHG Protocol (Scopes 1, 2, and 3), Scope 4 is not an official reporting category. However, it is increasingly used to measure the positive impact an organization generates for third parties, particularly when it develops low-carbon technologies or business models.
For example, a company that develops videoconferencing software generates Scope 4 emissions when its clients avoid air travel to meet in person. If the flight would have emitted 500 kg of CO₂ and the video call emits only 5 kg, the difference (495 kg) is considered avoided emissions.
The GHG Protocol classifies emissions into three official categories:
Scope 4, by contrast:
While Scopes 1, 2, and 3 quantify the impact generated, Scope 4 estimates the impact avoided.
Scope 4 is a useful but also controversial concept. It should never be deducted from the total inventory of Scopes 1, 2, and 3. It must be reported separately to prevent misleading interpretations regarding carbon neutrality or implicit offsets.
Although they do not replace traditional measurement, Scope 4 emissions play a strategic role in the climate transition.
They complement the traditional carbon footprint by showing:
In markets where clients must reduce their Scope 3 emissions, offering solutions that lower emissions becomes a key differentiator.
Investors increasingly value:
Although regulatory frameworks such as the CSRD do not require Scope 4 reporting, they do demand transparency and consistency in climate disclosures, making rigorous methodology essential.
The calculation is based on a comparative or baseline scenario approach.
This may require a Life Cycle Assessment (LCA) in accordance with standards such as:
Avoided emissions = Emissions from the conventional scenario − Emissions from the new scenario
Want to go deeper into impact measurement? Explore how our platform helps organizations structure their emissions inventories with methodological rigor.
At Manglai we help companies measure their carbon footprint and report avoided emissions transparently. Discover how Manglai can help you.
World Economic Forum (2022) You've probably heard of Scope 1, 2 and 3 emissions, but what are Scope 4 emissions? World Business Council for Sustainable Development (2025) Guidance on Avoided Emissions v2.0: Drive Innovations and Scale Solutions Toward Net Zero
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