Scope 3 emissions typically account for 70–90% of a company's total carbon footprint, yet they remain the hardest to measure. This guide breaks down all 15 Scope 3 categories under the GHG Protocol Corporate Value Chain Standard.
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). They are divided into 15 categories by the GHG Protocol.
Upstream categories (1–8)
Category 1: Purchased goods and services
Emissions from the production of goods and services purchased by the company. Typically the largest Scope 3 category for most companies. Can be calculated using spend-based, average-data or supplier-specific methods.
Category 2: Capital goods
Emissions from the production of capital goods purchased by the company — machinery, buildings, equipment and vehicles.
Category 3: Fuel- and energy-related activities
Emissions from the production of fuels and energy purchased by the company, not already included in Scope 1 or 2. Includes upstream emissions of purchased electricity and T&D losses.
Category 4: Upstream transportation and distribution
Emissions from transporting purchased goods from suppliers to the company, and from third-party distribution services.
Category 5: Waste generated in operations
Emissions from disposal and treatment of waste generated by the company's own operations.
Category 6: Business travel
Emissions from employee business travel in vehicles not owned by the company — flights, rail, hire cars and hotels.
Category 7: Employee commuting
Emissions from employees travelling between home and work, including remote working emissions.
Category 8: Upstream leased assets
Emissions from the operation of assets leased by the company, not included in Scope 1 or 2.
Downstream categories (9–15)
Category 9: Downstream transportation and distribution
Emissions from transporting sold products to customers and through retail channels.
Category 10: Processing of sold products
Emissions from further processing of intermediate products sold by the company.
Category 11: Use of sold products
Emissions from the use of goods and services sold by the company. Particularly significant for energy-using products.
Category 12: End-of-life treatment of sold products
Emissions from disposal and treatment of products sold by the company at the end of their life.
Category 13: Downstream leased assets
Emissions from the operation of assets owned by the company and leased to others.
Category 14: Franchises
Emissions from the operation of franchises not included in Scope 1 or 2.
Category 15: Investments
Emissions from the company's investments, including equity and debt investments, project finance and managed investments. Particularly relevant for financial services companies.
Automate your Scope 3 measurement
ESG:ONE automates Scope 3 data collection across all 15 categories using supplier surveys, AI data extraction and 140,000+ emissions factors.
Book a Demo