Scope 3 Emissions
Scope 3 emissions encompass all indirect greenhouse gas emissions that occur in the value chain of the reporting organisation, both upstream (supply chain) and downstream (use of sold products, end-of-life). They typically represent 70–90% of a company's total carbon footprint.
What is Scope 3 Emissions?
Scope 3 is the broadest and most complex category of greenhouse gas emissions under the GHG Protocol. It covers all indirect emissions not included in Scope 2 that occur in the value chain — both upstream (from suppliers and inputs) and downstream (from the use and disposal of products sold).
The GHG Protocol Corporate Value Chain Standard defines 15 categories of Scope 3 emissions. Upstream categories include: (1) Purchased goods and services, (2) Capital goods, (3) Fuel- and energy-related activities not in Scope 1 or 2, (4) Upstream transportation and distribution, (5) Waste generated in operations, (6) Business travel, (7) Employee commuting, and (8) Upstream leased assets. Downstream categories include: (9) Downstream transportation and distribution, (10) Processing of sold products, (11) Use of sold products, (12) End-of-life treatment of sold products, (13) Downstream leased assets, (14) Franchises, and (15) Investments.
For most organisations, Category 1 (Purchased goods and services) is the single largest source of Scope 3 emissions. This is typically calculated using either a spend-based approach — where procurement expenditure is multiplied by sector-average emission factors — or a hybrid approach that combines supplier-specific data with spend-based estimates for the remainder.
Scope 3 is challenging because the data often sits outside the organisation's direct control. Collecting primary data from hundreds or thousands of suppliers is difficult, so many organisations begin with spend-based estimates and progressively improve data quality over time by engaging key suppliers for actual emissions data.
Under the GHG Protocol, Scope 3 reporting is optional but recommended. However, several regulatory frameworks are making it increasingly mandatory. The CSRD in the EU requires value chain emissions disclosure. The ISSB's IFRS S2 standard includes Scope 3 requirements. Science Based Targets (SBTi) require companies with significant Scope 3 to set targets covering these emissions. The UK's Carbon Reduction Plan for government contracts (PPN 06/21) requires disclosure of all relevant Scope 3 categories.
Despite the complexity, Scope 3 is where the biggest reduction opportunities often lie — through sustainable procurement, supplier engagement programmes, product redesign, circular economy strategies, and shifting to lower-carbon logistics.
Practical Examples
A consulting firm's Scope 3 includes emissions from employee business flights (Category 6), staff commuting by car (Category 7), purchased IT equipment (Category 2), and cloud hosting services (Category 1).
A food manufacturer calculates Scope 3 Category 1 by applying spend-based emission factors to its procurement of raw ingredients, packaging, and agricultural commodities — typically the dominant source of emissions.
A construction company includes emissions from the production of steel, concrete, and timber purchased for projects (Category 1), subcontractor transport (Category 4), and waste sent to landfill from sites (Category 5).
How Climatise Helps
Climatise calculates Scope 3 across all 15 categories using spend-based, activity-based, and hybrid methodologies. Upload procurement data, travel records, and waste figures and the platform maps each line to the correct category and emission factor — turning months of consultant work into minutes.
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