What are Scope 3 emissions and how are they measured?

Modified on Wed, 16 Oct at 11:29 AM

Scope 3 emissions refer to all indirect greenhouse gas emissions that occur in an organisation’s value chain, both upstream and downstream, that are not included in Scope 1 or Scope 2.

These emissions often represent the largest portion of an organisation’s carbon footprint and include a wide range of activities beyond the organisation's direct control.

Scope 3 emissions are split into 15 different categories:

Purchased Goods and Services: emissions from the production of goods and services the organisation buys.
Capital Goods: emissions from the production of long-term assets like buildings and machinery.
Fuel- and Energy-Related Activities (Not Included in Scope 1 or Scope 2): emissions from the extraction, production, and transportation of fuels and energy not covered in Scope 1 or Scope 2.
Upstream Transportation and Distribution: emissions from transporting and distributing products and materials purchased by the organisation.
Waste Generated in Operations: emissions from the disposal and treatment of waste produced by the organisation.
Business Travel: emissions from employee travel for business purposes.
Employee Commuting: emissions from employees commuting to and from work.
Upstream Leased Assets: emissions from the operation of assets leased by the organisation.
Downstream Transportation and Distribution: emissions from the transportation and distribution of products sold by the organisation.
Processing of Sold Products: emissions from processing sold products after they leave the organisation.
Use of Sold Products: emissions from the use of products sold by the organisation during their lifetime.
End-of-Life Treatment of Sold Products: emissions from the disposal of products sold by the organisation at the end of their useful life.
Downstream Leased Assets: emissions from assets leased out by the organisation.
Franchises: emissions from franchise operations not directly controlled by the organisation.
Investments: emissions associated with investments in other businesses or projects.

Are there any optional categories within Scope 3 reporting?

Yes, some Scope 3 categories, like homeworking emissions, are optional to report. Additionally, other relevant emissions, such as travel to events hosted by the organisation, should be measured if they are significant.

Measuring Scope 3 emissions involves the following steps:

1. Identify Relevant Categories

Determine which of the 15 categories applies to your organisation based on its operations and value chain.

2. Data Collection:

Gather data from suppliers, third-party service providers, and other sources. This may involve obtaining information on purchased goods, fuel use, waste management practices, business travel, and more.

3. Quantify Emissions:

Use appropriate emission factors and methodologies to calculate emissions for each category. This might involve applying standard conversion factors to data such as fuel consumption, travel distances, or waste volumes.

4. Analyse and Report:

Aggregate the emissions data to understand the overall impact of the organisation’s value chain activities. Regularly update and report these findings to track progress and identify areas for improvement.

Example: A retail company might measure Scope 3 emissions by analysing the emissions from the production of its purchased products, transportation of goods from suppliers, waste generated from its stores, and the emissions from customer use of its products.

When assessing Scope 3 emissions, you can work through the following list to ensure you are covering and measuring all relevant activities within your scope:

Activity	Scope 3 Category
Accessories	1. Purchased goods and services
Advertising	1. Purchased goods and services
Agriculture	1. Purchased goods and services
Apparel	1. Purchased goods and services
Biofuel	3. Upstream emissions from purchased fuel and energy
Biogas	3. Upstream emissions from purchased fuel and energy
Biomass	3. Upstream emissions from purchased fuel and energy
Business Services	1. Purchased goods and services
Business Travel: Air	6. Business travel
Business Travel: Rail	6. Business travel
Business Travel: Road	6. Business travel
Business Travel: Sea	6. Business travel
Chemicals	1. Purchased goods and services
Computers	1. Purchased goods and services
Construction	1. Purchased goods and services
Digital Advertising	1. Purchased goods and services
Digital Network	1. Purchased goods and services
Digital Network Operator	11. Use of sold products
Digital: Web and Cloud Hosting	1. Purchased goods and services
Downstream leased assets: Buildings: Electricity	13. Downstream leased assets
Downstream leased assets: Buildings: Gas	13. Downstream leased assets
Downstream leased assets: Buildings: Refrigerant losses	13. Downstream leased assets
Downstream leased assets: Buildings: Waste	13. Downstream leased assets
Downstream leased assets: Buildings: Water	13. Downstream leased assets
Downstream leased assets: Information technology	13. Downstream leased assets
Downstream leased assets: Vehicles	13. Downstream leased assets
Electrical items	1. Purchased goods and services
Electricity	3. Upstream emissions from purchased fuel and energy
Employee Car Liquid Fuels	6. Business travel
Employee Commuting: Air	7. Employee commuting
Employee Commuting: Rail	7. Employee commuting
Employee Commuting: Road	7. Employee commuting
Employee Commuting: Sea	7. Employee commuting
End of Life of Sold Products	12. End-of-life treatment of sold products
Events	1. Purchased goods and services
Events: Accessories	1. Purchased goods and services
Events: Travel	6. Business Travel
Financed Emissions	15. Investments
Food and Drink	1. Purchased goods and services
Freight: Downstream	9. Downstream transportation and distribution
Freight: Owned vehicles	3. Upstream emissions from purchased fuel and energy
Freight: Upstream: Third party	4. Upstream transportation and distribution
Furniture	1. Purchased goods and services
Gas	3. Upstream emissions from purchased fuel and energy
Gaseous fuels	3. Upstream emissions from purchased fuel and energy
Heat and Steam	3. Upstream emissions from purchased fuel and energy
Home Working	7. Employee commuting
Hotel Stay	6. Business travel
Hygiene	1. Purchased goods and services
Industrial activities	1. Purchased goods and services
Information Technology: Hardware	1. Purchased goods and services
Information Technology: Services	1. Purchased goods and services
Information Technology: Software	1. Purchased goods and services
Liquid fuels	3. Upstream emissions from purchased fuel and energy
Machinery	2. Capital goods
Manufacturing	1. Purchased goods and services
Materials	1. Purchased goods and services
Metal	1. Purchased goods and services
Mineral	1. Purchased goods and services
Packaging	1. Purchased goods and services
Paper	1. Purchased goods and services
Plastic	1. Purchased goods and services
Purchased capital goods	2. Capital goods
Real Estate	1. Purchased goods and services
Solid fuels	3. Upstream emissions from purchased fuel and energy
Supplier Electricity	1. Purchased goods and services
Supplier Gas	1. Purchased goods and services
Supplier Liquid Fuels	4. Upstream transportation and distribution
Supplier refrigerant	1. Purchased goods and services
Textiles	1. Purchased goods and services
Trips: Accommodation	1. Purchased goods and services
Trips: Flights excluded: Client flights to/from point of departure	11. Use of sold products
Trips: Flights included: Client flights to/from point of departure	1. Purchased goods and services
Trips: Food and Drink	1. Purchased goods and services
Trips: In-trip transport	1. Purchased goods and services
Trips: Packaging	1. Purchased goods and services
Upstream leased assets: Buildings: Electricity	8. Upstream leased assets
Upstream leased assets: Buildings: Gas	8. Upstream leased assets
Upstream leased assets: Buildings: Refrigerant losses	8. Upstream leased assets
Upstream leased assets: Buildings: Waste	8. Upstream leased assets
Upstream leased assets: Buildings: Water	8. Upstream leased assets
Upstream leased assets: Information technology	8. Upstream leased assets
Upstream leased assets: Vehicles	8. Upstream leased assets
Use of Sold Products	11. Use of sold products
Use of Sold Products: Information Technology	11. Use of sold products
Vehicles	2. Capital goods
Waste construction	5. Waste generated in operations
Waste electrical items	5. Waste generated in operations
Waste glass	5. Waste generated in operations
Waste metal	5. Waste generated in operations
Waste paper	5. Waste generated in operations
Waste plastic	5. Waste generated in operations
Waste textiles	5. Waste generated in operations
Waste: Average	5. Waste generated in operations
Waste: Refuse	5. Waste generated in operations
Water	1. Purchased goods and services