Fuel and Energy Related Activities (Scope 3 Category 3)
Category 3 of Scope 3 covers emissions from fuel and energy purchased by the reporting company that are not already included in Scope 1 or Scope 2, including well-to-tank emissions, transmission and distribution losses, and generation of purchased electricity.
What is Fuel and Energy Related Activities (Scope 3 Category 3)?
This category captures the upstream emissions associated with fuel and electricity that fall outside the direct combustion (Scope 1) and purchased energy (Scope 2) boundaries. It includes three main components: well-to-tank (WTT) emissions from extracting, refining, and transporting fuels before combustion; transmission and distribution (T&D) losses from electricity delivered through the grid; and WTT emissions associated with generating the electricity consumed.
For most organisations, Category 3 adds approximately 10–20% on top of their combined Scope 1 and 2 total. While relatively straightforward to calculate (DEFRA publishes specific WTT and T&D loss factors), it is often overlooked because the activity data is the same as that already collected for Scope 1 and 2 — making it an easy win.
Category 3 is particularly relevant for energy-intensive sectors where fuel consumption is high, as WTT emissions can represent a material portion of the total footprint. It also highlights the hidden carbon cost of electricity grid losses, which in the UK average around 7–8% of generated electricity.
Practical Examples
A logistics company that burns 1 million litres of diesel per year (Scope 1) also reports the WTT emissions from extracting, refining, and delivering that diesel — adding approximately 60 tCO₂e to its Scope 3 Category 3.
An office-based company consuming 500,000 kWh of grid electricity reports both the T&D losses and the WTT emissions of the electricity generation, adding roughly 12% to its Scope 2 figure.
A manufacturing plant uses natural gas for heating. Beyond the Scope 1 combustion emissions, it reports the upstream extraction, processing, and pipeline distribution emissions as Category 3.
How Climatise Helps
Climatise automatically calculates Category 3 emissions alongside your Scope 1 and 2 inventory using the same activity data. DEFRA WTT and T&D loss factors are applied without any additional data collection, giving you a more complete picture of your energy-related footprint.
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