Scope 3 Category 3 Overview: Fuels and Energy - Related Activities
SCOPE 3 CATEGORY 3
Emissions pertain to the upstream emissions generated from the production of fuels and energy purchased by the reporting company, which are not covered in Scope 1 or Scope 2. These emissions encompass the extraction, production, and transportation of fuels and energy consumed by the company.
Category 3: Fuels and Energy Related Activities
Scope 3 Category 3 emissions are greenhouse gas (GHG) emissions from:
- Extraction and Production of Fuels: Emissions from the upstream processes involved in extracting and producing fuels used by the company. This includes crude oil extraction, refining processes, and natural gas production.
- Transportation of Fuels: Emissions resulting from the transportation of fuels to the point of sale or use. This involves emissions from vehicles, ships, and pipelines used to transport fuels from production sites to distribution centers and eventually to the company.
- Production of Purchased Energy: Emissions from the production of purchased electricity, steam, heating, and cooling that are not covered in Scope 2. This focuses on the emissions generated during the production of these energy forms that are consumed by the company.
Accounting and Reporting
- Upstream Activities: Companies must account for the full lifecycle emissions of fuels and energy they purchase, considering both the direct and indirect emissions from upstream activities.
- Data Collection: Collecting accurate data from suppliers and other stakeholders is crucial. This may involve engaging with suppliers to gather detailed information about the GHG emissions associated with the production and transportation of fuels and energy.
- Emission Factors: Utilize standardized emission factors to calculate the emissions from the production and transportation of fuels and energy. These factors are often provided by national inventories or industry-specific guidelines.
Example
- A company purchases natural gas for heating its buildings. The emissions associated with the extraction, processing, and transportation of this natural gas to the company's facilities would fall under Scope 3 Category 3 emissions.
Scope 3 Category 3 emissions cover the upstream GHG emissions from the production and transportation of purchased fuels and energy. Accurate accounting involves detailed data collection from suppliers and using standardized emission factors to ensure comprehensive reporting.
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