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What are Scope 3 Purchased Goods and Services emissions?

Purchased Goods and Services emissions fall under Category 1 of Scope 3 in the Greenhouse Gas (GHG) Protocol. These emissions represent the upstream carbon footprint associated with all products and services that a company buys to support its operations. 

This includes the extraction, production, and transportation of goods and services acquired in a given reporting year. These emissions occur in the supply chain, outside of the reporting company’s direct operations, making them indirect but often significant. 

Examples of Purchased Goods and Services Activities: 

  • Raw materials used in manufacturing. 
  • Office supplies and IT equipment. 
  • Professional services such as consultancy, legal, or marketing. 
  • Packaging materials. 
  • Contracted manufacturing where the supplier retains operational control. 

For many organisations, Purchased Goods and Services emissions can represent a substantial portion of their overall carbon footprint, especially for sectors reliant on complex supply chains or material-intensive production. 

How Are These Emissions Calculated?

Emissions from purchased goods and services are typically calculated using spend-based, activity-based, or supplier-specific methods: 

  • Spend-based method: Applies average emissions factors per monetary value spent (e.g., £ per tonne CO₂e). 
  • Activity-based method: Uses data like quantities of materials purchased multiplied by relevant emission factors. 
  • Supplier-specific method: Uses actual emissions data provided by suppliers. 

Why Are Purchased Goods and Services Emissions Important?

Managing Purchased Goods and Services emissions allows companies to: 

  • Identify carbon hotspots within their supply chain. 
  • Engage suppliers on sustainability improvements. 
  • Set effective reduction targets aligned with initiatives like the Science-Based Targets initiative (SBTi). 
  • Improve transparency for stakeholders and meet reporting standards. 

Addressing these emissions is a key step for businesses aiming to take responsibility for their full value chain impact and drive meaningful climate action.