At Groundwork, we work with organisations across the UK to enhance their environmental and social responsibility. One common challenge we hear about? Tackling Scope 3 emissions. In this post, we break down what Scope 3 reporting entails and how to take your first steps with confidence.
Understanding the Carbon Emissions Scopes
First, its important to remember that carbon emissions are typically broken into three categories:
- Scope 1: Direct emissions from owned or controlled sources (e.g., company vehicles, heating).
- Scope 2: Indirect emissions from purchased electricity and cooling.
- Scope 3: All other indirect emissions that occur in a company’s value chain, which is often the most significant and complex to measure.
Scope 3 emissions include everything from the production of purchased goods to the use and disposal of your products by customers.
The Scope 3 Reporting Process: Where to Begin
Scope 3 reporting doesn’t require perfection from the start but it does require structure. Here’s a streamlined process we recommend you following:
Set a Reporting Period
Decide on the timeframe your data will cover, typically a calendar or financial year.
Identify Relevant Categories
Scope 3 covers 15 categories across upstream and downstream activities. Start by identifying which ones are most applicable to your business.
- Upstream Categories: Purchased goods & services, capital goods, fuel and energy related activities, upstream transportation & distribution, waste, employee commuting, business travel and upstream leased assets.
- Downstream Examples: Downstream transportation & distribution, processing of sold products, use of sold products, end-of-life of sold products, downstream leased assets, franchises and investments.
For more detail and information on each category, download the GHG Protocol document Scope 3 Calculation Guidance
Build Value Chain Relationships
You’ll need cooperation from suppliers and customers in order to calculate Scope 3 emissions. Strong relationships make data collection easier and improve data quality over time. Check out our previous blog for more tips & advice on this!
Engage Your Value Chain
Share your data needs with stakeholders. Clear communication ensures better participation and accuracy.
How to Gather Scope 3 Data: Four Key Methods
Collecting data can feel overwhelming, but there are several methods to choose from:
- Supplier Method: Request actual emissions data from suppliers. Some of their Scope 1 and 2 data can inform your Scope 3 data, therefore it’s important to build that relationship for an easier data collection method.
- Average Data Method: Use activity data (like distance or weight) and apply average emissions factors found in the DEFRA carbon emissions databases.
- Spend-Based Method: Estimate emissions based on the amount of money spent and industry emissions averages.
- Hybrid Method: Combine the above for a balanced, practical approach.
The supplier method is the most accurate method, however spend based data is often easier to get hold of so we recommend a using a hybrid method for your first calculations.
Engaging Suppliers and Customers
Here’s some tips to encourage stakeholder buy-in:
- Offer training and incentives
- Run surveys to collect data
- Create recognition programs
- Develop supplier-customer alliances
- Highlight business and financial benefits
Next Steps Toward Scope 3
Once you’ve gathered your data:
- Summarise your Scope 1, 2, and 3 emissions
- Use available tools and resources to calculate and analyse totals
- Publish your organisation’s carbon footprint
- Improve processes over time
- Commit to annual reporting
If you still have questions about Scope 3 reporting or want help getting started, reach out to our team today: