Guides · Scope 3: the value chain
The 15 Scope 3 categories explained
All 15 Scope 3 categories of the GHG Protocol in one place: what each covers, upstream versus downstream, which calculation methods apply, and where to start.
By LCALens. Published 8 Oct 2026, 4 min read.
Scope 3 covers the indirect emissions in your value chain that are not in Scope 2. The GHG Protocol's Scope 3 Standard (2011) divides them into 15 categories so that companies report them consistently and do not count the same emissions twice.
Upstream and downstream
The standard splits the categories by direction:
- "Upstream emissions are indirect GHG emissions related to purchased or acquired goods and services."
- "Downstream emissions are indirect GHG emissions related to sold goods and services."
The 15 categories
The short descriptions below summarise table 5.4 of the standard. LCALens calculators are linked where one exists.
| # | Category | What it covers | In LCALens |
|---|---|---|---|
| 1 | Purchased goods and services | Cradle-to-gate emissions of everything you buy that is not a capital good | Purchased materials, spend-based method |
| 2 | Capital goods | Cradle-to-gate emissions of equipment, buildings and vehicles you buy | spend-based method |
| 3 | Fuel- and energy-related activities | Upstream emissions of fuels and electricity, and grid losses | Upstream fuel and energy, grid losses |
| 4 | Upstream transportation and distribution | Transport and storage of goods you buy, and transport you pay for | Freight |
| 5 | Waste generated in operations | Disposal and treatment of your waste and wastewater | Waste, wastewater |
| 6 | Business travel | Employee travel for work in vehicles you do not own or operate | Business travel, hotel stays |
| 7 | Employee commuting | Travel between home and work; teleworking is optional | Commuting, homeworking |
| 8 | Upstream leased assets | Operation of assets you lease that are not in your Scope 1 and 2 | — |
| 9 | Downstream transportation and distribution | Transport and storage of products you sell, when you do not pay for it | Freight |
| 10 | Processing of sold products | Processing of intermediate products by your customers | — |
| 11 | Use of sold products | Emissions from customers using what you sell, such as fuel or energy-using products | — |
| 12 | End-of-life treatment of sold products | Disposal of your products after use | Waste |
| 13 | Downstream leased assets | Operation of assets you own and lease to others | — |
| 14 | Franchises | Operation of franchises, reported by the franchisor | — |
| 15 | Investments | Operation of investments, including equity, debt and project finance | — |
Categories 1 to 8 are upstream and 9 to 15 are downstream.
What the standard requires
"Companies shall account for all scope 3 emissions and disclose and justify any exclusions." In practice this means screening every category, estimating the ones that matter, and explaining why any category is left out (for example, a services company with no sold products has nothing in categories 10 to 12).
Calculation methods
The technical guidance describes several methods for category 1, which also apply in similar form to other categories:
- Supplier-specific: "collects product-level cradle-to-gate GHG inventory data from goods or services suppliers."
- Hybrid: "uses a combination of supplier-specific activity data (where available) and secondary data to fill the gaps."
- Average-data: uses the mass or other physical quantity of what you buy, multiplied by an average emission factor per unit.
- Spend-based: uses the economic value of purchases multiplied by an emission factor per unit of currency.
Spend-based is the fastest way to cover purchased goods; supplier-specific data is the most accurate. Most companies start spend-based and move their largest suppliers to better data over time.
Where to start
- Category 3 reuses your Scope 1 and 2 data; see the category 3 guide.
- Categories 6 and 7 use travel bookings and a short commuting survey; see business travel and commuting.
- Categories 1 and 2 start from your accounts payable, grouped by type of spend.
- Categories 4, 5 and 9 come from logistics and waste contractor records; see freight.
Related
Calculate it
Scope 3
Purchased materials calculatorSteel, aluminium, plastics, paper, glass, concrete and other materials you buy.
Scope 3
Upstream fuel and energy calculatorWell-to-tank emissions of the fuels, electricity and heat you reported in Scope 1 and 2.
Scope 3
Freight transport calculatorGoods moved by road, rail, sea or air, in tonne-kilometres or vehicle kilometres.
Scope 3
Waste calculatorWaste from your operations by material and treatment route, such as landfill, recycling or composting.
Scope 3
Business travel calculatorFlights, rail, taxis, buses, ferries and employee-owned cars used for work trips.
Scope 3
Employee commuting calculatorStaff travel between home and work by car, bus, rail or motorbike.
Guides in Scope 3: the value chain
- Freight emissions in Scope 3: tonne-km, categories 4 and 9
- Scope 3 category 1: purchased goods and services with spend-based factors
- Scope 3 category 2: capital goods
- Scope 3 category 3: well-to-tank and grid losses explained
- Scope 3 category 5: waste generated in operations
- Scope 3 category 6: business travel emissions and radiative forcing
- Scope 3 category 7: employee commuting and homeworking
- Scope 3 category 8: upstream leased assets
- Scope 3 category 9: downstream transportation and distribution
- Scope 3 category 10: processing of sold products
- Scope 3 category 11: use of sold products
- Scope 3 category 12: end-of-life treatment of sold products
- Scope 3 category 13: downstream leased assets
- Scope 3 category 14: franchises
- Scope 3 category 15: investments
Sources
- Corporate Value Chain (Scope 3) Accounting and Reporting Standard, Table 5.4, World Resources Institute / WBCSD (2011) (accessed 2026-10-08)
- Technical Guidance for Calculating Scope 3 Emissions, Chapter 1: Category 1, World Resources Institute / WBCSD (accessed 2026-10-08)
- Technical Guidance for Calculating Scope 3 Emissions, Chapter 3: Category 3, World Resources Institute / WBCSD (accessed 2026-10-08)
This guide explains methods and published data. It is not legal or assurance advice. LCALens is designed to align with the GHG Protocol and ISO 14064-1 but is not certified or endorsed by either body.