What Scope 3 categories do I need to measure?
Trace's methodology is based on the GHG Protocol standard. Companies should include all relevant Scope 3 emissions categories below.
The Greenhouse Gas (GHG) Protocol categorizes emissions into three scopes and further breaks down Scope 3 emissions into 15 categories to help businesses measure and manage their carbon footprint comprehensively. Here’s a summary of the 15 categories of Scope 3 emissions:
Upstream Emissions (Related to Purchased Goods & Services)
-
Purchased Goods & Services – Emissions from the production of goods and services a company buys.
-
Capital Goods – Emissions from producing physical assets bought by the company, like buildings, machinery, and vehicles.
-
Fuel- and Energy-Related Activities (Not in Scope 1 or 2) – Emissions from fuel extraction, refining, and energy transmission/distribution losses.
-
Upstream Transportation & Distribution – Emissions from transporting goods before they reach the company.
-
Waste Generated in Operations – Emissions from disposal and treatment of waste from company operations.
-
Business Travel – Emissions from employee travel (e.g., flights, hotels, taxis).
-
Employee Commuting – Emissions from employees traveling to and from work.
-
Upstream Leased Assets – Emissions from leased assets not included in Scope 1 or 2 (e.g. electricity from leased buildings).
Downstream Emissions (Related to Product Use & Disposal)
-
Downstream Transportation & Distribution – Emissions from distributing and selling products after they leave the company.
-
Processing of Sold Products – Emissions from customers further processing a company’s product.
-
Use of Sold Products – Emissions from customers using the product over its lifetime.
-
End-of-Life Treatment of Sold Products – Emissions from disposal and treatment of products after use.
-
Downstream Leased Assets – Emissions from assets the company leases out (if not in Scope 1 or 2).
-
Franchises – Emissions from franchise operations not included in Scope 1 or 2.
-
Investments – Emissions from investments, such as equity, debt, and project finance.
These categories help businesses identify their full emissions impact beyond direct operations.