💵Purchased Goods and Services

This category includes all upstream (i.e., cradle-to-gate) emissions from the production of products purchased or acquired by the reporting company in the reporting year.

Products include both goods (tangible products) and services (intangible products).

Companies may use the methods listed below to calculate scope 3 emissions from purchased goods and services.

The first two methods – supplier-specific and hybrid – require the reporting company to collect data from the suppliers, whereas the second two methods – average-data and spend-based – use secondary data (i.e. industry average data). These methods are listed in order of how specific the calculation is to the individual supplier of a good or service. However, companies need not always use the most specific method as a first preference

Supplier-specific method

Supplier-specific method – collects product-level cradle-to-gate GHG inventory data from goods or services suppliers

Hybrid method

Hybrid uses a combination of supplier-specific activity data (where available) and secondary data to fill the gaps. This method involves:

• collecting allocated scope 1 and scope 2 emission data directly from suppliers;

• using secondary data to calculate upstream emissions wherever supplier-specific data is not available

Average-data method

Average-data method – estimates emissions for goods and services by collecting data on the mass (e.g., kilograms or pounds), or other relevant units of goods or services purchased and multiplying by the relevant secondary (e.g., industry average) emission factors (e.g., average emissions per unit of good or service)

Spend-based

Spend-based method – estimates emissions for goods and services by collecting data on the economic value of goods and services purchased and multiplying it by relevant secondary (e.g., industry average) emission factors (e.g., average emissions per monetary value of goods).

CarbonZE uses Spend based method at first glance at the data entry.

Then, we focus on high emissions get supplier specific method and approach end out to be a hybrid method

Purchase goods and services - Data entry

Purchase of Capital Goods

If capital goods purchased or acquired by the reporting company in the reporting year, then you can select the checkbox this purchased product is a capital good. Then it is assigned to Scope 3.2. Capital goods, in accordance with GHG protocol.