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As part of their effort to reduce emissions, large companies like McDonald鈥檚 have announced cuts to emissions from their own operations and power supply. These are known as Scope 1 and Scope 2 emissions, respectively. But large firms often do less to address emissions generated by the products they sell, which are known as Scope 3 emissions. McDonald鈥檚 is planning to install LED lights and power its restaurants with renewable energy. But it isn鈥檛 doing as much to address the carbon footprint of its food production. Beef production accounts for about one-third of its greenhouse gas emissions, and a Bloomberg investigation found that the fast-food giant is doing little to clean up its supply chain. That could represent a major change in the company鈥檚 business, and the possibility that carbon-intensive companies are forced to address Scope 3 emissions is a potential risk for investors, says Sanjith Gopalakrishnan, Assistant Professor of Operations Management at Desautels. 鈥淚n order for investors to get the full picture they should be aware of what Scope 3 emissions are.鈥�