Carbon accounting

Fuel- and Energy-Related Activities (Scope 3 Category 3)

The GHG Protocol Scope 3 category covering upstream emissions of purchased fuels and energy — extraction, production, transport, and grid losses — not already counted in Scope 1 or 2.

Established · Version 0.1

Definition

Fuel- and energy-related activities (Category 3 of the GHG Protocol's Corporate Value Chain Standard) covers emissions from the extraction, production, and transportation of fuels and energy purchased by the reporting company — including the upstream emissions of purchased fuels and electricity, transmission and distribution losses, and generation of purchased electricity sold to end users — excluding combustion emissions already reported in Scope 1 and Scope 2.

References

Overview

What it means

This category captures the "well-to-tank" and grid-loss part of an organisation's energy footprint: what it took to produce and deliver the fuel and electricity it consumes, rather than the act of burning or using them. For energy-intensive companies and utilities it can be a material share of the value-chain inventory.

How it is used

Companies quantifying Scope 3 inventories calculate Category 3 using average-data or supplier-specific methods; it feeds SBTi targets, CDP disclosures, and CSRD/ISSB reporting.

Why it matters

Omitting Category 3 understates the true footprint of purchased energy, and the category connects corporate accounting to the decarbonisation of upstream fuel supply and electricity grids.

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