What is Scope 3 Category 3: Fuel- and energy-related activities?
Category 3 captures the “extra” upstream emissions linked to the fuel and electricity you use, beyond what you report in Scope 1 and 2. It includes emissions from producing and transporting fuels, and from generating electricity (depending on the method you use).
What are Scope 3 Category 3: Fuel- and energy-related activities?
Category 3 covers emissions associated with the extraction, production, and transport of fuels and energy that your organisation purchases and consumes, but that are not already included in Scope 1 or Scope 2. For example, if you burn gas in Scope 1, Category 3 would include the upstream emissions from producing and delivering that gas.
It is different from Scope 1, which covers direct combustion, and Scope 2, which covers purchased electricity. Category 3 is essentially the upstream footprint of your energy supply.
Examples of Scope 3 Category 3: Fuel- and energy-related activities
Common examples include:
- Upstream emissions from purchased natural gas, diesel, petrol, LPG, or other fuels
- Upstream emissions from purchased electricity (generation and transmission and distribution losses, depending on factors used)
- Upstream emissions from purchased steam, heat, or cooling
- Well-to-tank emissions for fuels used in company vehicles (when not already included in Scope 1 factors)
How to calculate Scope 3 Category 3: Fuel- and energy-related activities
A typical approach looks like:
- Collect energy consumption totals (kWh electricity, kWh gas, litres of fuel, etc.)
- Separate what is already included in Scope 1 and 2 from what Category 3 adds
- Apply upstream emission factors for each fuel and energy type
- Include electricity transmission and distribution losses where relevant to your approach and factor set
- Sum across all energy types and sites
Common data sources include:
- Utility bills and energy meters
- Fuel purchase records and fleet data
- Conversion factors or life cycle energy factors from recognised sources
How to reduce Scope 3 Category 3: Fuel- and energy-related activities
Because this category follows your energy use, reductions generally track energy strategy, for example:
- Use less energy through efficiency and better controls
- Electrify processes currently relying on fossil fuels where feasible
- Shift to lower-carbon electricity procurement options where available
- Reduce fuel consumption in fleets through routing, driver behaviour, and vehicle choice
- Improve energy data quality so reductions show up clearly year on year
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