Climate & Environment
Spend-Based Method (Scope 3)
A Scope 3 estimation method that multiplies procurement spend by sector-average emission factors — the pragmatic starting point for value chain inventories.
Definition
The spend-based method estimates Scope 3 greenhouse gas emissions by multiplying the money spent on purchased goods and services by environmentally extended input-output (EEIO) emission factors for the relevant sector and region. It is the lowest-granularity method in the GHG Protocol's Scope 3 hierarchy — quick, covering everything, and useful for hotspot screening — but it reflects sector averages rather than supplier-specific performance, so improvements by actual suppliers may not register.
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