What Are the 15 Scope 3 Categories?

The GHG Protocol divides Scope 3 emissions into 15 distinct categories to help organizations measure their full value chain footprint. These categories are split between upstream activities (emissions from suppliers and operations, Categories 1-8) and downstream activities (emissions from product use, distribution, and disposal, Categories 9-15). This framework provides a standardized way to account for all indirect emissions, from purchased goods to investments.

Navigating greenhouse gas (GHG) emissions throughout a company's value chain poses a multifaceted challenge. The GHG Protocol created these categories to help organizations understand the factors that need to be accounted for when analyzing and ultimately reducing their Scope 3 emissions.

What Are the Upstream Scope 3 Categories? (1-8)

Upstream emissions are indirect GHG emissions related to purchased or acquired goods and services.

• Category 1: Purchased Goods and Services: Emissions from the production of all goods and services procured by the company.
• Category 2: Capital Goods: Emissions from the production of capital goods (e.g., machinery, buildings) acquired by the company.
• Category 3: Fuel- and Energy-Related Activities: Emissions from the production of fuels and energy purchased and consumed by the company that are not already included in Scope 1 or 2.
• Category 4: Upstream Transportation and Distribution: Emissions from the transportation and distribution of products from tier 1 suppliers to the company.
• Category 5: Waste Generated in Operations: Emissions from the third-party disposal and treatment of waste generated by the company's operations.
• Category 6: Business Travel: Emissions from the transportation of employees for business-related activities in vehicles not owned by the company (e.g., flights, trains, rental cars).
• Category 7: Employee Commuting: Emissions from the transportation of employees between their homes and their workplaces.
• Category 8: Upstream Leased Assets: Emissions from the operation of assets leased by the company (as a lessee).

What Are the Downstream Scope 3 Categories? (9-15)

Downstream emissions are indirect GHG emissions related to sold goods and services.

• Category 9: Downstream Transportation and Distribution: Emissions from the transportation and distribution of products sold by the company to the end consumer.
• Category 10: Processing of Sold Products: Emissions from the processing of intermediate products sold by the company to third parties.
• Category 11: Use of Sold Products: Emissions from the use of goods and services sold by the company by the end consumer.
• Category 12: End-of-Life Treatment of Sold Products: Emissions from the waste disposal and treatment of products sold by the company at the end of their life.
• Category 13: Downstream Leased Assets: Emissions from the operation of assets owned by the company and leased to other entities (as a lessor).
• Category 14: Franchises: Emissions from the operation of franchises, relevant for franchisors.
• Category 15: Investments: Emissions associated with the company's investments, including equity and debt investments (also known as financed emissions).