Complete Guide to Scope 3 Emissions
Scope 3 emissions typically represent 70-90% of a company's total carbon footprint. This guide covers all 15 categories, calculation methods, and reduction strategies.
What are Scope 3 Emissions?
Scope 3 emissions are all indirect emissions that occur in a company's value chain — both upstream (suppliers, purchased goods) and downstream (product use, end-of-life).
Unlike Scope 1 (direct emissions) and Scope 2 (purchased energy), Scope 3 covers emissions that the company doesn't directly control but can influence through procurement, product design, and engagement with suppliers and customers.
All 15 Scope 3 Categories
⬆️ Upstream Categories (1-8)
Purchased Goods & Services
Extraction, production, and transportation of goods and services purchased
Data needed: Spend data, supplier emissions data
Capital Goods
Extraction, production, and transportation of capital goods
Data needed: Capital expenditure, asset data
Fuel & Energy Activities
Extraction and production of fuels, T&D losses
Data needed: Energy consumption data
Upstream Transportation
Transportation of purchased goods
Data needed: Logistics data, freight volumes
Waste Generated
Disposal and treatment of waste
Data needed: Waste volumes by type
Business Travel
Transportation of employees for business
Data needed: Travel bookings, expense data
Employee Commuting
Transportation of employees to/from work
Data needed: Employee surveys, office locations
Upstream Leased Assets
Operation of leased assets
Data needed: Lease agreements, energy data
⬇️ Downstream Categories (9-15)
Downstream Transportation
Transportation of sold products
Data needed: Distribution data, customer locations
Processing of Sold Products
Processing by third parties
Data needed: Product specifications, processor data
Use of Sold Products
End-use of products sold
Data needed: Product energy consumption, lifetime
End-of-Life Treatment
Disposal of products sold
Data needed: Product composition, disposal rates
Downstream Leased Assets
Operation of assets leased to others
Data needed: Tenant data, building energy
Franchises
Operation of franchises
Data needed: Franchise energy, emissions data
Investments
Emissions from investments
Data needed: Portfolio data, investee emissions
Calculation Methods
Spend-Based Method
Uses financial spend data multiplied by emission factors per $ spent.
Best for: Quick estimates, limited data availability
Activity-Based Method
Uses actual quantities (kg, km, kWh) with activity-specific emission factors.
Best for: Higher accuracy, available activity data
Supplier-Specific Method
Uses actual emissions data from suppliers (CDP, direct requests).
Best for: Highest accuracy, supplier engagement
Hybrid Method
Combines methods based on data availability for each category.
Best for: Balanced approach, progressive improvement