What is Scope 3 Category 3: Fuel- and energy-related activities?
GHG Protocol table 3.1 divides Category 3 into four activities: upstream emissions from purchased fuels; upstream emissions from purchased energy; lifecycle emissions from transmission and distribution losses; and, for energy retailers, generation of purchased energy resold to customers. Fuel combustion stays in Scope 1, while generation of energy you consume stays in Scope 2.
Why does Scope 3 Category 3 matter to you?
CDP 2026 Question 7.8 asks for gross global Scope 3 emissions and explanations for exclusions. Category 3 is easily missed when your file stops at Scope 2. Keep fuel quantities, energy kWh, lifecycle factors, utility loss rates, and the reporting year.
How is Scope 3 Category 3 calculated?
GHG Protocol formulas 3.1 to 3.4 multiply fuel or energy quantities by matching upstream or lifecycle factors. Formula 3.3 is purchased kWh x lifecycle kg CO2e/kWh factor x grid loss rate. Add each applicable activity once. Include generation emissions from resold energy only if you resell energy.
What mistakes should you avoid?
- Using a total lifecycle factor in Category 3 without removing combustion already counted in Scope 1 or Scope 2.
- Leaving transmission and distribution losses out because the electricity reached your meter.
- Applying activity D to a normal end user rather than an energy retailer.
Is Scope 3 Category 3 the same as Scope 2?
No. Scope 2 records generation emissions for purchased energy you consume. Category 3 records upstream stages and energy lost before your meter. Separate factors prevent double counting.
What should you send when a customer asks for Category 3?
Send the reporting period, totals for each applicable Category 3 activity, fuel and energy records, factor value and unit, geography and year, loss-rate source, method, exclusions, and separation from Scope 1 and Scope 2.