GHG Protocol

Scope 3 emissions.
All 15 value chain categories.

GHG Protocol defines 15 Scope 3 categories covering your entire value chain — from raw material extraction to product end-of-life. This is the full inventory guide for manufacturing companies, with relevance ratings and Sustaineve coverage.

GHG Protocol SBTi GRI 305 CSRD CDP
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Definition

What Scope 3 covers — and why it matters.

Scope 3 is the category of value chain emissions — all greenhouse gases produced outside your direct operations but connected to your business through your supply chain, logistics, employee activities, and product use.

For most manufacturers, Scope 3 is 5–20× larger than Scope 1 + Scope 2 combined. The raw materials you purchase, the transport of your goods, and the eventual disposal of your products all carry significant embedded carbon.

Scope 3 is now required by SBTi for target-setting, by CSRD for EU supply chain reporting, by CDP for full disclosure score, and by GRI 305-3. It is increasingly demanded by global buyers from Indian manufacturers.

The three scopes — at a glance

Scope 1

Direct emissions from owned/controlled sources — combustion, processes, fugitives.

Scope 2

Indirect emissions from purchased electricity and heat — location-based or market-based.

Scope 3

All other indirect emissions in the value chain — 15 categories, upstream and downstream.

Upstream (Categories 1–8)

Emissions before your factory gate.

Upstream Scope 3 covers the emissions embedded in everything that enters your operation — materials, energy, goods, logistics, and services.

Cat 1 High relevance

Purchased Goods & Services

Raw materials, packaging — largest category for most manufacturers

Cat 2 Medium relevance

Capital Goods

Embodied emissions in machinery, buildings, equipment

Cat 3 High relevance

Fuel & Energy-Related Activities

Extraction & transmission losses for purchased energy

Cat 4 High relevance

Upstream Transportation & Distribution

Inbound logistics — freight from suppliers to factory

Cat 5 Medium relevance

Waste Generated in Operations

Disposal and treatment of operational waste

Cat 6 Low relevance

Business Travel

Employee flights, rail, and hotel stays

Cat 7 Low relevance

Employee Commuting

Daily travel of employees to work site

Cat 8 Low relevance

Upstream Leased Assets

Emissions from assets leased for company use

Downstream (Categories 9–15)

Emissions after your factory gate.

Downstream Scope 3 covers the emissions generated by your products and outputs — in transit, in use, and eventually in disposal.

Cat 9 High relevance

Downstream Transportation & Distribution

Outbound logistics — delivery to customers and retail

Cat 10 Medium relevance

Processing of Sold Products

Emissions from further processing by downstream processors

Cat 11 High relevance

Use of Sold Products

Energy use during product lifetime — high for durable goods

Cat 12 Medium relevance

End-of-Life Treatment of Sold Products

Landfill, incineration, or recycling of products post-use

Cat 13 Low relevance

Downstream Leased Assets

Emissions from assets leased to customers

Cat 14 Low relevance

Franchises

Emissions from franchisee operations

Cat 15 Low relevance

Investments

Financed emissions — primarily financial institutions

FAQ

Scope 3 questions answered.

What is Scope 3 in GHG accounting?
Scope 3 covers all indirect GHG emissions in a company's value chain — both upstream (from suppliers and inputs) and downstream (from the use and disposal of products). The GHG Protocol defines 15 distinct categories. Unlike Scope 1 and 2, Scope 3 is voluntary under most frameworks but required for full GHG Protocol conformance, SBTi target-setting, GRI, CSRD, and CDP.
Which Scope 3 categories are most relevant for manufacturers?
For manufacturing companies: Category 1 (Purchased Goods & Services) is typically the largest — raw materials. Category 4 (Upstream Transportation) covers inbound logistics. Category 9 (Downstream Transportation) covers outbound distribution. Category 11 (Use of Sold Products) is material for durable goods. Relevance varies by sector and product type.
Is Scope 3 reporting mandatory in India?
Scope 3 is not yet mandatory in India under BRSR or CCTS. However, SEBI's BRSR Core framework encourages Scope 3 disclosure. GRI, SBTi, and CDP all require Scope 3 data. Global supply chain buyers increasingly require Scope 3 data from Indian suppliers — particularly for CSRD compliance in the EU.
How does Sustaineve calculate Scope 3?
Sustaineve covers Scope 3 categories within the measurement engine. Calculation methods include spend-based (Category 1), distance-based (Categories 4 and 9), and activity-based approaches using IPCC and sector-specific emission factors. The coverage roadmap is expanding — categories are added based on materiality ranking for manufacturing operations.

GHG Protocol

Corporate Standard — Scope 1, 2, and 3 methodology

Scope 1 Emissions

Direct emissions from your operations

Measure Emissions (Product)

See Scope 3 coverage in the calculation engine

Scope 3 Coverage

Start with Scope 1 & 2. Add Scope 3 from the same dataset.

One verified emission inventory. Scope 1, 2, and 3 coverage from a single data entry point. See how in 30 minutes.

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