Scope 3, Category 1 emissions refer to the indirect emissions resulting from a company's purchased goods and services, encompassing the entire supply chain. These emissions are generated by the company's suppliers, including their upstream and downstream activities.

Calculating Scope 3, Category 1 Emissions

To accurately calculate Scope 3 Category 1 emissions, companies should follow these steps:

1. Identify the Scope: Define the boundaries of supply chain emissions and determine which suppliers and activities fall within the reporting scope.

2. Collect Data: Gather information on supplier emissions, including details about the amount and type of products purchased, transportation methods, distribution processes, and energy consumption.

3. Calculate Emissions: Utilize established emission factors to calculate Scope 3 Category 1 emissions. Multiply the collected data by the corresponding emission factors.

4. Report Emissions: Include Scope 3 Category 1 emissions in sustainability reports and consider setting targets to reduce these emissions over time.

Methods for Calculating Scope 3 Emissions from Purchased Goods and Services

Companies can use various methods to calculate Scope 3 emissions from purchased goods and services. The methods, in order of specificity, include:

1. Supplier-Specific Method: Collect product-level data directly from suppliers on the GHG inventory of goods or services.

2. Hybrid Method: Combine supplier-specific data with secondary data (such as industry averages) to calculate emissions.

3. Average-Data Method: Estimate emissions using industry averages for emissions per unit of product.

4. Spend-Based Method: Estimate emissions based on the economic value of goods and services purchased, using industry averages for emissions per monetary value of goods.

While the supplier-specific method offers the most precise calculation tailored to the individual supplier, companies do not always need to prioritize the most specific method. The choice of method depends on data availability, accuracy requirements, and the feasibility of data collection.

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For more information

To start at the beginning, read the Understanding Carbon Emissions guide, or to move to the general overview of scope 1, 2 and 3.