Scope 3 and value chain emissions

Scope 3 often represents the most complex part of a corporate inventory, spread across suppliers, freight, waste and travel, and rarely captured in one place. A staged approach keeps it manageable.

A staged approach

Rather than attempting to calculate every category in full detail at once, we work through Scope 3 in stages.

  1. Screen

    Review all fifteen Scope 3 categories against the organisation’s operations.

  2. Identify relevant categories

    Confirm which categories apply and which don’t, with the reasoning documented.

  3. Prioritise

    Identify which categories are likely to be material, based on scale, spend and available data.

  4. Assess data

    Gather the best available data for priority categories: supplier information, spend records, freight and travel data.

  5. Calculate

    Apply an appropriate calculation method and emission factor for each category.

  6. Improve

    Identify where data quality can be strengthened for future reporting periods.

Calculation methods

Depending on the category and the data available, Scope 3 calculations may draw on supplier-specific data, activity-based data, physical quantities, spend-based estimates, or a combination of these with an appropriate emission factor database.

No single method is always preferable. The right approach depends on what data the organisation already holds and what level of accuracy the reporting requirement calls for.

Capabilities

  • Scope 3 category screening & identification
  • Prioritisation of material sources
  • Purchased goods & services
  • Supplier spend analysis
  • Capital goods & fuel/energy-related activities
  • Upstream & downstream transportation
  • Waste, business travel & commuting
  • Data improvement planning

The fifteen Scope 3 categories

Defined under the GHG Protocol Corporate Value Chain (Scope 3) Standard. Not every category applies to every organisation.

1. Purchased goods & services 2. Capital goods 3. Fuel & energy activities 4. Upstream transport & distribution 5. Waste generated in operations 6. Business travel 7. Employee commuting 8. Upstream leased assets 9. Downstream transport & distribution 10. Processing of sold products 11. Use of sold products 12. End-of-life of sold products 13. Downstream leased assets 14. Franchises 15. Investments

Typical outputs: A screened and prioritised category list, supporting calculations for the material categories, and a plan to improve data over time. The specific mix depends on the engagement and isn’t guaranteed to include every item above.

Screen your Scope 3 footprint

A first screening exercise is often enough to identify where the material emissions sit, and where the biggest data gaps are.

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