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June 18, 2025
The GHG Protocol is a key framework for measuring and managing greenhouse gas (GHG) emissions, including Scope 3, which includes indirect upstream and downstream emissions. Measuring these emissions helps companies differentiate themselves in the marketplace, save money and build brand awareness. Scope 3 often accounts for the majority of emissions, providing a major opportunity to combat climate change.
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The GHG Protocol, a leading framework, helps organizations measure and manage their emissions, including Scope 3 emissions.
In this article, discover what Scope 3 is under the GHG Protocol, and why measuring your emissions represents a real opportunity for companies.
The GHG Protocol, or Greenhouse Gas Protocol, is an internationally recognized standard for accounting and reporting greenhouse gas (GHG) emissions created in 1998. It serves as a global framework for governments, companies and other organizations to measure, manage and reduce their GHG emissions.
The GHG Protocol has several objectives:
The GHG Protocol offers a number of tools to help organizations measure their emissions, which cover a wide range of greenhouse gases, such as carbon dioxide (CO2) and methane (CH4).
Scope 3 covers a wide range of indirect activities, classified into 15 categories according to the GHG Protocol. These categories are divided into two main groups: upstream emissions (related to suppliers) and downstream emissions (related to the use of products and services by customers).
Upstream categories:
Downstream categories:
Each of these categories makes it possible to identify and quantify the emissions associated with the company’s various activities, thus facilitating the implementation of targeted reduction strategies.
Scope 3 upstream emissions refer to all greenhouse gas (GHG) emissions that are generated before a company’s internal operations begin. These emissions cover the entire supply chain and processes prior to direct production.
Every product or service a company purchases has its own carbon footprint. Raw materials, machinery, IT equipment, or even services such as consulting and maintenance all have emissions associated with their production, transportation, and delivery. This type of emissions also includes resource extraction, manufacturing, packaging, and delivery.
The energy a company purchases (electricity, heating, or cooling) has a major impact on its carbon footprint. The source of this energy plays a crucial role: companies using renewable energy (solar, wind, hydro) significantly reduce their emissions compared to those relying on fossil fuels. In addition, the efficiency of the energy production and transport infrastructure also influences total emissions.
The transport of raw materials to the production site and the distribution of intermediate products must also be taken into account when calculating GHG Protocol Scope 3 emissions. The distance travelled, the mode of transport used (road, sea, rail or air), as well as the efficiency of the vehicles all have an influence on the total level of emissions. In particular, maritime and air transport generate higher emissions per tonne transported compared to rail or waterway transport.
Business travel, whether by plane, train or car, as well as employees’ daily commutes between home and work, represent a significant source of Scope 3 emissions. By promoting more sustainable practices, such as teleworking, carpooling or the use of public transport, companies can significantly reduce this category of GHG Protocol Scope 3 emissions. Optimizing business travel, via videoconferencing, is also an effective lever.
There are also a multitude of upstream emissions sources that are specific to each organization and must be accounted for in its GHG Protocol Scope 3. This can include emissions related to waste management generated by suppliers, financial investments, outsourced activities or the environmental impact of leased infrastructure. A thorough analysis of the value chain makes it possible to identify these different “hidden” emissions and adopt strategies to reduce them effectively.
Scope 3 downstream emissions include all greenhouse gas (GHG) emissions that occur after a company’s products or services have been sold to the end customer. These emissions are often difficult to control because they depend on how the products are used, transported and disposed of. However, they must be taken into account in the GHG Protocol Scope 3 calculation and can represent a significant portion of a company’s overall carbon footprint.
A major source of downstream emissions is the use of the products or services sold by a company. For example, if a company sells electrical appliances, the emissions resulting from the use of these appliances by consumers are considered downstream emissions. This includes the energy consumption required to operate the products throughout their lifetime. In the case of vehicles, these emissions also include fuel emissions related to their daily use.
Companies can reduce these emissions by designing more energy-efficient products, promoting sustainable technological innovations, or educating consumers on environmentally responsible usage practices.
After a product is sold, emissions may be generated during its transport to additional distribution points, warehouses, or directly to the end consumer. These emissions depend on the mode of transport used (road, sea, rail, or air), the distance traveled, and logistics efficiency. To reduce these emissions, companies can optimize their supply chains, favor less polluting modes of transport, consolidate shipments, or use electric vehicles for local deliveries.
When a product reaches the end of its useful life, it must be disposed of or recycled. Each disposal method, whether recycling, landfill, incineration or other methods, has its own associated emissions that must be accounted for in GHG Protocol Scope 3.
Recycling can reduce emissions by reusing materials, while incineration or landfill can generate significant emissions, including methane (CH4).
Companies can minimize these emissions by designing products that are easy to recycle, reducing the use of non-recyclable materials, and implementing end-of-life product take-back programs.
There are also other potential sources of downstream emissions that can vary depending on the industry or sector in which the company operates. For example, GHG Protocol Scope 3 may include emissions associated with financial investment, servicing of products sold, or support services required to use the products.
To reduce these specific emissions, companies can work with their partners and customers to optimize the entire value chain, develop sustainable products and promote responsible consumption practices.
Calculating Scope 3 greenhouse gas (GHG) emissions is often complex, as it encompasses all indirect emissions occurring in an organization’s value chain, both upstream and downstream. To calculate GHG Protocol Scope 3 emissions, it is advisable to follow a structured, multi-step approach.
The GHG Protocol defines 15 categories, such as purchases of goods and services, business travel, transportation and distribution, use of products sold, and waste management. The company must determine which categories are relevant to its activities.
The company must gather data specific to each identified category, with information from suppliers, customers, logistics partners, etc. When primary data is not available from the various partners, secondary data from sector databases can be used.
These factors, often provided by recognized environmental databases (such as ADEME or EPA), allow activity data (e.g. kilometers traveled, tons of raw materials purchased) to be converted into CO2 equivalents.
There are several approaches:
Throughout the GHG Protocol Scope 3 calculation process, it is necessary to document the assumptions, data sources and methods used to ensure the traceability and credibility of the results.
In an increasingly climate-conscious world, companies that account for their Scope 3 emissions can differentiate themselves from the competition. This can translate into a competitive advantage in the marketplace, particularly in sectors where sustainability has become a key purchasing criterion for consumers.
In addition, by identifying sources of emissions in their supply chain, companies can identify opportunities for energy efficiency, reduced transportation costs, and other cost savings that can reduce both their carbon footprint and their expenses.
In addition, consumers, investors, and other stakeholders value corporate environmental responsibility. By measuring and working to reduce their Scope 3 emissions, companies can strengthen their brand and reputation as responsible actors. Similarly, many regulations around the world require companies to account for their GHG emissions, including Scope 3 emissions.
Finally, Scope 3 emissions often represent the majority of a company’s total emissions. Therefore, addressing these emissions provides an opportunity to achieve significant emissions reductions for organizations.
Taking into account Scope 3 emissions is essential for all organizations. With the GHG Protocol and the use of dedicated software like our D-Carbonize carbon footprint calculator, companies have a reliable tool to measure, report, and ultimately reduce their emissions, reinforcing their commitment to a sustainable future. By aligning with these standards, organizations can not only meet regulatory expectations, but also position themselves as eco-responsible leaders in their industry.
Home Summary This article evaluates the effectiveness of free carbon assessment software for individuals and businesses, highlighting their advantages and limitations. Although they raise awareness
Home Summary The GHG Protocol is a key global standard for assessing and managing corporate greenhouse gas (GHG) emissions. Divided into three ‘scopes’, it covers
