Scope 3 Category 4 Overview: Upstream Transportation and Distribution Emissions
SCOPE 3 CATEGORY 4
Emissions, also known as "upstream transportation and distribution" emissions, encompass all GHG emissions from the transportation and distribution of products purchased between a company’s first-tier suppliers and its own operations. These emissions include both inbound logistics (transportation to the reporting company) and third-party transportation and distribution services purchased by the reporting company.
Category 4: Upstream Transportation and Distribution
Category 4 emissions include emissions from various transportation methods (road, rail, air, sea) and distribution centers operated by third parties. These emissions are considered upstream as they occur before the products reach the reporting company's facilities.
The emissions can be further broken down into:
Accounting
To accurately report these emissions, companies should collect data on fuel consumption and activity data (such as distance traveled, weight of goods transported) from their transportation and distribution service providers. This data is often obtained through collaboration with suppliers and service providers.
Example
- A company that manufactures electronics sources components from various suppliers worldwide. The emissions from transporting these components via trucks, ships, and planes to the company's assembly plant, as well as the emissions from distribution centers where these components are stored before reaching the assembly line, are considered Scope 3 Category 4 emissions.
Conclusion
Managing and reporting Scope 3 Category 4 emissions requires thorough data collection and collaboration with suppliers and service providers. By understanding and mitigating these emissions, companies can significantly reduce their overall carbon footprint and contribute to more sustainable supply chain practices.
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