Step-by-Step Guide to Calculate Scope 3 Emissions: Multiple Examples and Formulas Included

Scope 3 emissions refer to the indirect emissions associated with a company's value chain. These emissions are often the most significant for organizations and can be challenging to quantify. As a result, understanding how to calculate Scope 3 emissions is essential for organizations to track and reduce their carbon footprint. In this blog post, we will provide a step-by-step guide to calculate Scope 3 emissions, along with multiple examples and formulas.

Step-by-Step Guide to Calculate Scope 3 Emissions:

Identify the categories of Scope 3 emissions: Scope 3 emissions are divided into 15 categories, which include everything from purchased goods and services to waste disposal. Therefore, it's crucial to identify which categories of Scope 3 emissions are relevant to your organization.

1. Collect data: Collect data from your organization's value chain, including suppliers, customers, and other stakeholders. The data may include the amount of electricity, fuel, and materials used in the production process, as well as the amount of waste generated and the mode of transportation used to move products.

2. Calculate emissions from purchased goods and services: Calculate the emissions associated with purchased goods and services by multiplying the number of goods or services purchased by the emissions factor.

The formula for calculating emissions from purchased goods and services is:

Emissions = Quantity of goods or services purchased x Emissions factor

For example, if an organization purchases 1,000 metric tons of steel, and the emissions factor for steel production is 1.8 metric tons of CO2 per metric ton of steel, then the emissions from the purchase of steel would be:

Emissions = 1,000 metric tons x 1.8 metric tons of CO2 per metric ton of steel = 1,800 metric tons of CO2

Calculate emissions from transportation: Calculate the emissions associated with transportation by multiplying the distance travelled by the emissions factor.
The formula for calculating emissions from transportation is:

Emissions = Distance travelled x Emissions factor

For example, if an organization transports its products 100 miles by truck, and the emissions factor for truck transportation is 0.02 metric tons of CO2 per mile, then the emissions from transportation would be:

Emissions = 100 miles x 0.02 metric tons of CO2 per mile = 2 metric tons of CO2

Calculate emissions from waste: Calculate the emissions associated with waste disposal by multiplying the amount of waste generated by the emissions factor.
The formula for calculating emissions from waste is:

Emissions = Quantity of waste generated x Emissions factor

For example, if an organization generates 1,000 metric tons of waste, and the emissions factor for landfill disposal is 0.75 metric tons of CO2 per metric ton of waste, then the emissions from waste disposal would be:

Emissions = 1,000 metric tons x 0.75 metric tons of CO2 per metric ton of waste = 750 metric tons of CO2

Sum up emissions from all categories: Once you have calculated the emissions from each category, sum up all the emissions to get the total Scope 3 emissions.

Example of calculating Scope 3 emissions:

Let's take an example of a company that produces and sells shoes. The company purchases leather, cotton, and rubber from suppliers, transports the materials to the factory, produces the shoes, transports the shoes to the warehouse, and sells them to customers.

Step 1: Identify the categories of Scope 3 emissions - Purchased goods and services, transportation, and waste disposal 

Step 2: Collect data - Data collected from suppliers, transportation companies, and waste disposal companies 

Step 3: Calculate emissions from purchased goods and services

Leather emissions: Emissions = Quantity of goods purchased x Emissions factor

The company purchases 100 metric tons of leather, and the emissions factor for leather production is 5.5 metric tons of CO2 per metric ton of leather.

Emissions from leather = 100 metric tons x 5.5 metric tons of CO2 per metric ton of leather = 550 metric tons of CO2

Cotton emissions: Emissions = Quantity of goods purchased x Emissions factor

The company purchases 50 metric tons of cotton, and the emissions factor for cotton production is 2.5 metric tons of CO2 per metric ton of cotton.

Emissions from cotton = 50 metric tons x 2.5 metric tons of CO2 per metric ton of cotton = 125 metric tons of CO2

Rubber emissions: Emissions = Quantity of goods purchased x Emissions factor

The company purchases 20 metric tons of rubber, and the emissions factor for rubber production is 4.8 metric tons of CO2 per metric ton of rubber.

Emissions from rubber = 20 metric tons x 4.8 metric tons of CO2 per metric ton of rubber = 96 metric tons of CO2

Total emissions from purchased goods and services = 550 + 125 + 96 = 771 metric tons of CO2

Step 4: Calculate emissions from transportation

Transportation emissions from raw materials to the factory:
The distance travelled is 200 miles, and the emissions factor for truck transportation is 0.02 metric tons of CO2 per mile.

Emissions from transportation = Distance travelled x Emissions factor

Emissions from transportation = 200 miles x 0.02 metric tons of CO2 per mile = 4 metric tons of CO2

Transportation emissions from the factory to the warehouse:
The distance travelled is 50 miles, and the emissions factor for truck transportation is 0.02 metric tons of CO2 per mile.

Emissions from transportation = Distance travelled x Emissions factor

Emissions from transportation = 50 miles x 0.02 metric tons of CO2 per mile = 1 metric ton of CO2

Total emissions from transportation = 4 + 1 = 5 metric tons of CO2

Step 5: Calculate emissions from waste disposal

Waste disposal emissions:

The company generates 5 metric tons of waste, and the emissions factor for landfill disposal is 0.75 metric tons of CO2 per metric ton of waste.

Emissions from waste disposal = Quantity of waste generated x Emissions factor

Emissions from waste disposal = 5 metric tons x 0.75 metric tons of CO2 per metric ton of waste = 3.75 metric tons of CO2
Total emissions from waste disposal = 3.75 metric tons of CO2

Step 6: Sum up emissions from all categories

Total Scope 3 emissions = Emissions from purchased goods and services + Emissions from transportation + Emissions from waste disposal

Total Scope 3 emissions = 771 metric tons of CO2 + 5 metric tons of CO2 + 3.75 metric tons of CO2 = 779.75 metric tons of CO2

Conclusion:

Calculating Scope 3 emissions are essential for organizations to reduce their carbon footprint and contribute to a healthier planet. By following the step-by-step procedure and using the appropriate formulas and emission factors, organizations can accurately calculate their Scope 3 emissions. Remember to identify the categories of Scope 3 emissions, collect data, calculate emissions from purchased goods and services, transportation, and waste disposal, and sum up all the emissions from different categories. By reducing Scope 3 emissions, organizations can help to mitigate climate change and promote sustainability.

Author: Hello, my name is Hari Vandana Konda and I am an IT and cloud sustainability enthusiast with a passion for maximizing the impact of technology in our world. I am a certified professional in Amazon Web Services (AWS), Microsoft Azure, Google Cloud Platform (GCP), and Oracle. In addition, I am also a certified FinOps Practitioner which has given me a unique perspective on managing cloud costs and optimizing the overall financial health of organizations. My expertise in these cloud platforms, combined with my passion for sustainability, makes me an ideal author for discussions surrounding the intersection of technology and the environment. Step-by-Step Guide to Calculate Scope 3 Emissions: Multiple Examples and Formulas Included by Hari Vandana Konda