Scope 3 Emissions (With Examples): Downstream vs Upstream
The most difficult carbon emissions to calculate for a business can have the biggest impact on its carbon footprint.
According to Carbon Trust’s research, Scope 3 emissions can make upwards of 90% of a company’s carbon impact, especially in large enterprises. The GHG Protocol has broken down and defined Scope 3 emissions into two categories: downstream and upstream emissions. This breakdown of Scope 3 emissions helps businesses assess their carbon footprint. Scope 3 emissions, as defined by the Greenhouse Gas (GHG) Protocol, are indirectly produced by a company’s operations, and are generated in the value chain, including upstream and downstream emissions.
Calculating Scope 3 emissions is not a simple task, however. The lack of measurement tools and limited resources makes the process difficult. Many Small and Medium-sized Businesses (SMBs) struggle to understand the difference between upstream and downstream emissions. Identifying areas responsible for Scope 3 emissions can help set effective decarbonization initiatives and subsequent targets.
What are Scope 3 upstream emissions?
Scope 3 upstream emissions are made during the production of goods or services. The areas responsible for upstream emissions can be an important contributor to a business's carbon footprint. Indirect activities can be difficult to manage, which is why calculating emissions is vital to narrow down what your business should focus on. This can vary depending on the industry and the business itself.
Below are some examples:
Purchased Goods and Services
Capital goods
Fuel and energy related activities
Upstream transportation and distribution
Operations waste
Business travel
Employee commuting
Upstream leased assets
What are Scope 3 downstream emissions?
Scope 3 downstream emissions are created from the usage or disposal of products or services. The emissions produced from handling and disposal after purchase for many companies can be the most significant driver in increasing emissions for a corporation.
Below are some examples:
Downstream Transportation and Distribution
Processing of Sold Products
Sold product Usage
Franchises
Investments
Downstream Leased assets
Calculating and Minimizing Scope 3 Emissions
For many businesses, carbon accounting software and services feel inaccessible because of the cost and lack of knowledge regarding where to start. Laying the groundwork for a decarbonization timeline begins with calculating the carbon footprint. Upstream emissions can be calculated through supplier collaboration. It can be difficult to retrieve accurate and up-to-date information for a business's Scope 3 downstream emissions. It is necessary to work with transportation companies and any third parties involved in downstream activities to capture this data. From there, a business can develop science-based target initiatives to reduce downstream emissions. This will ensure a business focuses on specific areas within its operations that are the primary causes of emissions. The carbon emissions assessment can be reported to investors and stakeholders to ensure a company's commitment to sustainability.
Benefits of Monitoring Scope 3 Downstream and Upstream Emissions
Corporate responsibility (CR) is vital for a business’s long-term growth. After calculating Scope 3 emissions a business can identify risks along their supply chain. Suppliers behind in sustainability performance and standards can hurt companies over time. The importance of monitoring Scope 3 downstream and upstream emissions is evident in the costs of supply chain risks related to sustainability. Implementing decarbonization initiatives is one way a business can take action and recognize the impact they have on the environment. Emission mitigation and minimization strategies will assist in reducing your carbon footprint. Thorough monitoring of downstream and upstream emission-producing activities can help ensure stability for your businesses in the long term.
At RyeStrategy, the process starts with measuring the carbon footprint of your business. We understand the complexity of calculating Scope 3 downstream and upstream emissions and have the tools to achieve your decarbonization targets. Our affordable carbon accounting software will provide support for small businesses of varying sizes to start their decarbonization plan. RyeStrategy has made calculating Scope 1, 2, and 3 emissions more accessible for businesses by providing offerings at an affordable price. Get started on the carbon footprinting process with RyeStrategy and reach out to info@ryestrategy.com.
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About RyeStrategy
Based in Seattle, RyeStrategy is a CDP-accredited, mission-oriented company specialized in carbon accounting, mitigation coaching, and climate disclosure solutions for organizations at any point in their sustainability journey. Learn how RyeStrategy helped Salesforce, Ideascale, and Wazoku achieve their sustainability goals.
From exhaustive carbon footprinting and mitigation coaching, to setting science-based targets and reporting climate data to CDP, SBTi or custom reporting platforms, RyeStrategy acts as a hands-on extension of the team, custom-tailoring services to fulfill climate disclosure requirements easily and accurately.
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