GHG Protocol Scope 3: complete guide

Downstream emissions

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.

Use of Goods and Services Sold

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.

Transportation and distribution (downstream)

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.

End of product life

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.

Other indirect downstream emissions

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.

How to calculate GHG Protocol Scope 3 emissions?

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.

Identify Scope 3 emission categories

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.

Collect reliable data

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.

Use appropriate emission factors

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.

Apply appropriate calculation methods

There are several approaches:

• Expenditure-based method: converts financial amounts into estimated emissions.
• Activity-based method: more accurate, it is based on real data (energy consumption, kilometers traveled, etc.).
• Hybrid method: combines the two previous methods for greater accuracy.

Ensure consistency and transparency

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.

Why measure Scope 3 emissions?

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.