What is the difference between upstream and downstream emissions?

Upstream emissions occur in the supply chain before your operations (raw materials, components, transport to you, business travel). Downstream emissions occur after your operations (product use by customers, end-of-life treatment, distribution to retailers). Together they comprise your full Scope 3 footprint.

Which upstream category is usually the largest?

For most organisations, Category 1 (purchased goods and services) is the largest upstream source, often representing 40-80% of total upstream emissions. However, this varies significantly by sector. Service companies may find business travel or employee commuting more significant, while manufacturers typically have large supply chain emissions.

Upstream Emissions

Indirect greenhouse gas emissions that occur in the supply chain before a product or service reaches the reporting organisation, covering Scope 3 Categories 1-8 under the GHG Protocol.

What is Upstream Emissions?

Upstream emissions encompass all indirect emissions in the value chain that occur before the reporting organisation's operations. Under the GHG Protocol Corporate Value Chain (Scope 3) Standard, upstream categories include: purchased goods and services (Category 1), capital goods (Category 2), fuel- and energy-related activities not included in Scopes 1 or 2 (Category 3), upstream transportation and distribution (Category 4), waste generated in operations (Category 5), business travel (Category 6), employee commuting (Category 7), and upstream leased assets (Category 8).

For most organisations, upstream emissions — particularly Category 1 (purchased goods and services) — represent the largest share of total Scope 3 emissions. Service-sector companies may find that Categories 1 and 6 dominate, while manufacturers typically have large Category 1 and Category 4 emissions.

Calculating upstream emissions is essential for setting comprehensive Science Based Targets, as SBTi requires companies with significant Scope 3 emissions (typically >40% of total) to set Scope 3 targets. It is also increasingly required under CSRD and ISSB for value chain reporting.

Practical Examples

A retailer calculates upstream emissions across all eight categories, finding that purchased goods (Category 1) account for 78% of its total Scope 3 upstream footprint.

A professional services firm discovers that business travel (Category 6) and employee commuting (Category 7) are its two largest upstream emission sources, prompting a remote-work and sustainable travel policy.

A manufacturer maps its upstream supply chain to identify Tier 1 and Tier 2 suppliers with the highest carbon intensity, prioritising them for supplier engagement programmes.

How Climatise Helps

Climatise automates the calculation of all eight upstream Scope 3 categories. Upload your procurement data, travel records, and waste data, and the platform applies the appropriate emission factors and calculation methods for each category.

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