The 15 Categories of Scope 3 Emissions Explained

Scope 3 covers indirect emissions across a company's value chain. The GHG Protocol divides them into eight upstream and seven downstream categories so organisations can identify hotspots and avoid gaps or double counting.

Upstream categories

1. Purchased goods and services: cradle-to-gate emissions from inputs and services.
2. Capital goods: production of buildings, machinery, vehicles and other long-lived assets purchased in the reporting year.
3. Fuel and energy-related activities: upstream fuel emissions and electricity transmission losses not included in Scope 1 or 2.
4. Upstream transportation and distribution: inbound freight and storage not owned or controlled by the reporting company.
5. Waste generated in operations: treatment and disposal of operational waste.
6. Business travel: flights, rail, hotels and other employee travel in third-party assets.
7. Employee commuting: travel between home and work, including relevant remote-work effects where the methodology includes them.
8. Upstream leased assets: emissions from leased assets outside the company's Scope 1 and 2 boundary.

Downstream categories

9. Downstream transportation and distribution: movement and storage of sold products after the company's operations.
10. Processing of sold products: further processing of intermediate goods.
11. Use of sold products: emissions generated during product use.
12. End-of-life treatment of sold products: disposal, recycling or treatment after use.
13. Downstream leased assets: operation of assets owned by the company and leased to others.
14. Franchises: emissions from franchise operations outside the franchisor's direct boundary.
15. Investments: financed emissions associated with equity, debt, project finance and other financial activities.

From inventory to action

Most companies find that a small number of categories dominate. The next step is to improve primary data for those hotspots and design reduction levers with suppliers, logistics providers or customers.

Scope 3 insetting can address emissions inside the value chain, including freight through Azure Road and land-sector removals through Cocoa Native Agroforestry.