Update (September 2026): The GHG Protocol Scope 3 revision (Phase 1 update, 31 March 2026) proposes a 95% minimum coverage rule and a new Category 16 for other value-chain activities, ahead of the merger of the corporate standards with ISO 14064-1 (consultation Q2 2027, final end-2028). California's SB 253 will limit its 2027 Scope 3 requirement to five categories, and the ISSB's IFRS S2 amendments let financial institutions limit Category 15 to financed emissions from 1 January 2027.
The GHG Protocol categorizes Scope 3 emissions into 15 categories, which are:
- Purchased goods and services
- Capital goods
- Fuel and energy consumption
- Employee commuting
- Business travel
- Upstream transportation and distribution
- Processing of sold products
- Use of sold products
- End-of-life treatment of products
- Transportation and distribution of sold products
- Use of goods by the company
- End-of-life treatment of company-owned assets
- Leased assets
- Franchises
- Investments
These categories include emissions from:
- Suppliers and contractors
- Customers and end-users
- Transportation and logistics
- Waste management and disposal
- End-of-life treatment of products and assets
- Investments and financial activities
Scope 3 emissions are important because they can have a significant impact on an organization's overall greenhouse gas footprint. For example, an organization that sources goods and services from suppliers that have high greenhouse gas emissions may have a significant Scope 3 emissions footprint.
Some examples of Scope 3 emissions include:
- Emissions from suppliers' manufacturing processes
- Emissions from transportation and logistics
- Emissions from waste management and disposal
- Emissions from end-of-life treatment of products and assets
- Emissions from investments and financial activities
Organizations are increasingly recognizing the importance of measuring and managing Scope 3 emissions as part of their overall sustainability strategy. This is because Scope 3 emissions can have a significant impact on an organization's reputation, risk, and financial performance.
To measure Scope 3 emissions, organizations can use various methods, including:
- Surveys and questionnaires
- Data collection and analysis
- Life cycle assessments
- Carbon footprinting
- Industry benchmarks and standards
By measuring and managing Scope 3 emissions, organizations can identify opportunities to reduce their greenhouse gas footprint, improve their sustainability performance, and contribute to a more sustainable future.
