Detailing the 15 categories under Scope 3

Scope 3 emissions are often the largest and most challenging part of a company's carbon footprint

Here is a breakdown of the 15 categories, organized by Upstream and Downstream activities.

The 15 Scope 3 Categories

⬆️ Upstream Emissions (Categories 1-8)

These are emissions from sources related to the production of goods and services a company purchases before they are used in the company's own operations.

1. Purchased Goods & Services - Emissions from the production of all raw materials, components, supplies, and outsourced services (e.g., accounting, IT support).

2. Capital Goods - Emissions from the production of long-lasting assets a company buys, like equipment, machinery, buildings, and vehicles (that are not fleet vehicles).

3. Fuel- and Energy-Related Activities (Not in Scope 1 or 2) - Emissions from the upstream activities of fuel/energy production, such as methane leakage from gas extraction or the energy used to transport coal.

4. Upstream Transportation & Distribution - Emissions from third-party transportation and storage of purchased raw materials or components before they reach the company's facility.

5. Waste Generated in Operations - Emissions from the disposal and treatment of all waste (solid and wastewater) created in the company's facilities.

6. Business Travel - Emissions from employee travel for business in non-company-owned or controlled vehicles (e.g., commercial flights, rental cars, train travel).

7. Employee Commuting - Emissions from employees traveling between their homes and the workplace.

8. Upstream Leased Assets - Emissions from the operation of assets leased in by the reporting company (e.g., a rented office space or warehouse).

⬇️ Downstream Emissions (Categories 9-15)

These are emissions from sources related to the use and end-of-life of the company's products/services after they leave the company's ownership or control.

9. Downstream Transportation & Distribution - Emissions from third-party transport and storage of sold products after they leave the company (e.g., shipping finished goods to customers).

10. Processing of Sold Products - Emissions from the further processing of intermediate products sold by the company (e.g., a fabric company's material being made into clothing by a customer).

11. Use of Sold Products - Emissions generated by the end-user operating the company's product (e.g., the fuel burned by a car, or the electricity consumed by an appliance).

12. End-of-Life Treatment of Sold Products - Emissions from the disposal or recycling of products after the customer is finished using them (e.g., decomposition of a product in a landfill).

13. Downstream Leased Assets - Emissions from the operation of assets leased out by the company to another entity (e.g., an office building the company owns but leases out to tenants).

14. Franchises - Emissions from the operation of all franchises not included in the reporting company's Scope 1 and 2 (e.g., emissions from lighting and heating a franchisee's restaurant).

15. Investments - Emissions associated with a company's financial investments, particularly relevant for financial institutions (e.g., emissions from companies in which a bank has invested).