GHG Protocol Scope 3 Standard
The GHG Protocol Corporate Value Chain (Scope 3) Standard is the definitive methodology for calculating and reporting value chain emissions. Published in 2011 and still the mandatory reference under ESRS E1-6, it defines all 15 Scope 3 categories and the calculation methods for each.
The GHG Protocol Corporate Value Chain (Scope 3) Standard is the definitive methodology for calculating and reporting value chain emissions. For most companies, Scope 3 emissions dwarf direct emissions.
Why Scope 3 matters more than Scope 1 and 2
For most companies, Scope 3 emissions dwarf direct emissions. Financial services companies have Scope 3 representing 99%+ of total footprint — all in Category 15 (investments). Retail companies see 80–90% of emissions in Category 1 (purchased goods) and Category 11 (use of sold products). Even manufacturing companies with significant Scope 1 typically find Scope 3 represents 60–70% of total.
This distribution means that a company focused exclusively on Scope 1 and 2 reduction is addressing a minority of its climate impact. The Paris Agreement requires economy-wide decarbonisation — Scope 3 disclosure and reduction is essential for corporate climate strategies to be credible.
ESRS E1-6 makes this explicit: Scope 3 disclosure is mandatory for material categories. Combined with ESRS E1-1 transition plan requirements, CSRD effectively mandates a Scope 3 reduction strategy, not just measurement.
The 15 categories in detail
Upstream categories (emissions from activities before your operations): Category 1 — Purchased goods and services: typically the largest upstream category for manufacturers and retailers. Category 2 — Capital goods: emissions from production of equipment and assets you purchase. Category 3 — Fuel and energy related activities: upstream emissions from extraction and processing of fuels you use. Category 4 — Upstream transportation and distribution: logistics from suppliers to your facilities. Category 5 — Waste generated in operations: disposal and treatment of operational waste. Category 6 — Business travel: flights, hotels, rail for employee business travel. Category 7 — Employee commuting: emissions from employee travel between home and work. Category 8 — Upstream leased assets: emissions from assets you lease from others.
Downstream categories (emissions from activities after your operations): Category 9 — Downstream transportation and distribution: logistics from your facilities to customers. Category 10 — Processing of sold products: transformation of your products by downstream customers. Category 11 — Use of sold products: emissions from customers using your products (largest for energy, automotive, electronics). Category 12 — End-of-life treatment: disposal of your products after consumer use. Category 13 — Downstream leased assets: emissions from assets you own and lease to others. Category 14 — Franchises: emissions from franchisee operations. Category 15 — Investments: financed emissions from equity and debt investments.
The Scope 3 Standard revision — what is changing
WRI and WBCSD announced a revision of the Scope 3 Standard in 2022 — the first update since 2011. The revision is expected to address several significant gaps in the original standard.
Key areas under revision: Category 15 financed emissions (aligning with PCAF methodology which has become the de facto standard for financial sector Scope 3); double counting between categories and between companies in the same value chain; treatment of carbon removals and offsets in Scope 3 accounting; and guidance on Scope 3 targets and reductions.
The revision timeline has extended significantly — as of early 2026, the revised standard is still in draft consultation. Monitor WRI's ghgprotocol.org for publication dates.
For ESRS E1-6 compliance: use the current 2011 Scope 3 Standard until the revision is final and formally referenced by EFRAG. Do not pre-emptively adopt draft revised methodology — this creates year-over-year comparability issues.
Frequently asked questions
Do we need to calculate all 15 Scope 3 categories every year?
Only material categories. The Scope 3 Standard requires a screening of all 15 categories to identify which are material — typically defined as categories representing more than 1% of total Scope 3 or where you have significant influence. Screen annually; calculate in detail for material categories.
What is the difference between the Scope 3 Standard and the Scope 3 Evaluator?
The Scope 3 Standard is the methodology document — the rules for calculation. The Scope 3 Evaluator was a free web tool that applied the methodology to screen categories. The tool was decommissioned in August 2023. ESGMaster's Scope 3 Calculator provides equivalent screening functionality with updated 2025 emission factors.
Can we use the Scope 3 Standard for product-level footprints?
No — the Scope 3 Standard is for corporate-level value chain accounting. For product-level carbon footprints, use the GHG Protocol Product Standard (2011) or ISO 14067. Product footprints feed into corporate Scope 3 as supplier-specific emission factors for Category 1.