Purchased goods and services emissions (Scope 3 Category 1)

Purchased goods and services emissions, categorised under Scope 3 Category 1 of the Greenhouse Gas (GHG) Protocol, represent the indirect emissions arising from a reporting company's acquisition of goods and services. 

Unlike Scope 1 and 2 emissions, which account for direct emissions from owned or controlled sources and indirect emissions from the generation of purchased energy, respectively, Scope 3 emissions encompass all other indirect emissions that occur within a company's value chain. This includes upstream and downstream emissions, with purchased goods and services emissions forming a significant part of the upstream emissions.

For a comprehensive accounting of these emissions, it is essential to consider the entire lifecycle of the purchased goods and services, from raw material extraction through manufacturing to final disposal. The emissions are associated with the direct manufacturing of the goods and with the ancillary processes such as transportation, storage, and any other activities necessary to bring the goods or services to the reporting company.

Notably, emissions from purchased goods and services often represent a significant portion of a company's total Scope 3 emissions, making them a critical area for GHG management and reduction strategies. Accurate accounting and reporting of these emissions enable companies to identify hotspots for GHG reduction, engage with suppliers on sustainability, and make informed decisions to minimise their carbon footprint.

To learn more about GHG emissions and how companies can reduce them, read our Whitepaper "The corporate decarbonisation journey".