Understanding Scope 3 Categories and Calculation Methods in the GHG Protocol

The GHG Protocol provides a standardized framework for organizations to measure and report their Greenhouse Gas (GHG) emissions. This protocol is made up of three categories, or “scope”, each of which has a distinct set of calculation methods. In this article, we’ll delve into each scope and the associated calculation methods so you can be sure to effectively measure your organization’s emissions.

Scope 1 covers direct emissions from owned or controlled sources, such as combustion in owned or controlled boilers, furnaces, vehicles, and other direct emissions. These emissions can be calculated in one of two ways:

Scope 2 covers indirect emissions from the generation of purchased electricity. The two calculation methods used to calculate these emissions are:

Scope 3 emissions are indirect greenhouse gas (GHG) emissions associated with activities of a company outside of its direct operations. These emissions are not emitted directly into the atmosphere by the company, but rather occur in its value chain, either upstream in the supply chain or downstream in activities associated with the end use of the company’s products or services.

Scope 3 emissions can be broken down into three categories:

This category includes emissions associated with the transport and distribution of materials or goods to a company’s sites or operations, such as emissions from trucks and planes that transport materials. It also includes emissions associated with the transport of finished goods or services to market, such as emissions from the trucks and planes that deliver the company’s products to the customers.

This category includes emissions associated with the consumption and end-use of the company’s products or services by its customers, such as the use of fuel for the operation of the company’s products, such as cars, aircraft, and buildings. Also included in this category are emissions associated with the disposal or recycling of the company’s products.

This category includes all other indirect emissions that occur in a company's value chain, such as business travel, employee commuting, raw material extraction, waste disposal, and the use of a company's products by its customers. These emissions can have a large impact on a company's total carbon emissions and should not be ignored when considering total environmental impact.

When describing corporate emissions, upstream transportation and distribution includes emissions associated with the transport and distribution of materials or goods to a company’s sites or operations. Businesses are accountable for the emissions produced by the transportation of the materials and goods they are using, as well as emissions from the transport of their finished goods or services to market.

Upstream transportation and distribution emissions usually come from trucks and planes. However, emissions can also come from transport vessels, railways, power production, and waste management. As fuel becomes cleaner and greener, the emissions from upstream transportation and distribution will also decrease.

Reducing emissions from upstream transportation and distribution requires businesses to consider multiple aspects of their operations, such as:

Businesses should focus on reducing upstream transportation and distribution emissions by keeping the transport distances as short as possible, opting for cleaner transport materials and vehicles, and making sure their packaging materials are lightweight and recyclable.

Consumption and end-use of products and services results in different types of emissions. This article will discuss the various emissions associated with downstream goods and services associated with a company’s products and services.

Downstream goods and services refer to emissions associated with the consumption and end-use of a company’s products or services by their customers. These emissions include the use of fuel for the operation of the company’s products such as cars, aircraft, and buildings.

Emissions associated with the disposal or recycling of the company’s products are also included in this category. Some examples of these emissions include emissions associated with incineration, reduced energy consumption from recycling and reuse of parts.

The emissions associated with the consumption and end-use of products and services have a major impact on the environment. These emissions can contribute to global climate change, air pollution, and water pollution. Companies should be aware of the potential environmental impacts of their products and services, and strive to reduce their emissions as much as possible.

It is important to know where your emissions are coming from and work to reduce them wherever possible. Companies should take into account the entire life cycle of their product and the emissions associated with each process in that cycle.

There are several steps companies can take to reduce their emissions associated with downstream goods and services. These steps include:

By taking these steps, companies can make a noticeable difference in the emissions associated with their products and services, and help protect the environment.

In the field of sustainability and reducing carbon emissions, it's important to understand how all aspects of a company's operations contribute towards the total emissions. Many companies have made strides towards reducing their carbon footprint by addressing the impact from direct emissions, but there is another piece of the equation; indirect emissions.

This category includes a variety of emissions that go beyond just those caused directly by a company’s operations. For example, this category includes emissions from:

These indirect emissions can have a large impact on a company's total carbon emissions and should not be ignored when considering total environmental impact. Companies should take into account all of their sources of indirect impact to get a complete understanding of their carbon footprinting.

In order to reduce the impact of indirect emissions on a company’s carbon footprint, a strategy must be put in place to address each of the various sources, from business travel to waste disposal. In order to create such a strategy, companies should:

By creating a comprehensive strategy that covers both direct and indirect emissions sources, companies can make strides towards reducing their total carbon footprint.

Scope 3 emissions cover a wide range of activities that generate GHG emissions and can have a meaningful impact on a company’s carbon footprint. It is important for companies to measure and monitor their Scope 3 emissions in order to design effective carbon management strategies.

Because the sources that create Scope 3 emissions are so diverse and potentially numerous, calculating these emissions can be a complex task. However, with the right knowledge, it can be easily done with the following steps:

Understanding and managing your company's Scope 3 emissions can help your company achieve its environmental goals and protect the planet for future generations.

By understanding and utilizing the GHG Protocol’s categories and calculation methods, you can better understand and accurately measure your organization’s GHG emissions in an effort to reduce them.