Every product’s journey leaves an invisible footprint. Scope 3 Category 9 uncovers the hidden emissions generated from transporting and distributing goods to consumers, because every mile matters.
What are downstream transportation and distribution emissions (Scope 3 Category 9)?
Downstream transportation and distribution emissions represent a Scope 3 category and include emissions from transportation and distribution of products sold by the reporting company between the company's operations and the end consumer, when not paid for by the reporting company, including retail and storage in vehicles and facilities not owned or controlled by the company (source).
These emissions can arise from:
- Storage of sold products in warehouses and distribution centres
- Storage of sold products in retail facilities
- Air transport
- Rail transport
- Road transport
- Marine transport
More information can be found page 49 of the Corporate Value Chain Standard of the GHG Protocol.
Scope 3 Category 9 calculation methods
Companies can calculate downstream transportation and distribution emissions using:
Distance-based Method
Mass of goods purchased × distance travelled × emission factor of transport modeRequired data:
- Mass/volume of products sold
- Actual distances from transportation suppliers
- Online maps/calculators
- Published port-to-port distances
Spend-based Method
Amount spent on transportation by type × emission factors per unit of economic valueRequired data:
- Amount spent on transportation by type (road, rail, air, barge)
If actual transportation distances are unknown, companies can estimate using:
- Government/academic/industry publications
- Online maps and calculators
- Published port-to-port travel distances
How can companies reduce downstream transportation and distribution emissions?
Reduction strategies can include:
- Reducing distance between supplier and customer
- Optimising efficiency of transportation and distribution
- Replacing higher emitting transportation modes (e.g. air transport) with lower emitting modes (e.g. marine transport)
- Shifting toward lower-emitting fuel sources
More information page 113 of the Corporate Value Chain Standard (GHG Protocol).
Important considerations
- Category 9 only includes transportation and distribution emissions that occur after the reporting company pays to produce and distribute its products
- Outbound transportation and distribution services purchased by the reporting company are excluded from category 9 and included in category 4 (Upstream transportation and distribution)
- Companies may include emissions from customers traveling to retail stores in this category, which can be significant for companies that own or operate retail facilities
Reducing Scope 3 Category 9 emissions is essential for meaningful decarbonisation. Plan A’s carbon management platform simplifies this process, turning compliance into impact and helping your business stay ahead. Schedule a call here.
