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Definition

Scope 3 Category 3: Fuel- and energy-related activities Definition

Scope 3 Category 3 captures upstream fuel and purchased-energy emissions, transmission and distribution losses, and resold-energy generation that are outside your Scope 1 and Scope 2 totals.

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.

Example

Hypothetical UAE facilities-services example: Suppose a facilities-services company uses 120,000 kWh at a Dubai site in 2025. Keslio factor grid_ae_dewa_2025_proxy is 0.3833 kg CO2e/kWh for the United Arab Emirates, published in the DEWA Sustainability Report 2025. The same report gives a 2% electricity transmission and distribution loss rate.

Generation-only loss calculation: 120,000 kWh x 0.3833 kg CO2e/kWh x 2% = 919.92 kg CO2e, or 0.91992 metric tonnes CO2e. This is a partial proxy for activity C, not a complete Category 3 total. The company must still add upstream fuel and purchased-energy emissions using matching lifecycle factors and record that the DEWA factor is a Dubai proxy.

Where it comes up

CDP 2026 gross global Scope 3 emissions and exclusions, including Category 3CDP full corporate questionnaire 7.8; SME questionnaire 20.7AASB S2 disclosure of included Scope 3 categories, including fuel- and energy-related activitiesAASB S2 Appendix A paragraph A[17], paragraph 29(a)(vi)(1), and B32ESRS E1-6 screening and disclosure of significant Scope 3 categories, including Category 3 when significantCommission Delegated Regulation (EU) 2023/2772, ESRS E1-6 paragraph 51, AR 46(c)-(i), and AR 48

Related terms

Scope 3 Emissions

Scope 3 emissions are the indirect greenhouse gas emissions from goods, services, transport, product use, investments, and other upstream and downstream activities outside your company's Scope 1 and Scope 2 boundary.

Scope 2 Emissions

Scope 2 emissions are the indirect greenhouse gas emissions from generating the electricity, steam, heat, and cooling your company buys and uses.

Scope 1 Emissions

Scope 1 emissions are greenhouse gases released directly from sources your company owns or controls, including fuel-burning equipment and vehicles, industrial processes, and refrigerant or other gas leaks.

Emission factor

An emission factor converts a measured activity, such as kilowatt-hours of electricity or litres of fuel, into greenhouse gas emissions by stating the emissions released per unit of that activity.

Sources

  • GHG Protocol

    Category 3 boundary, four activities, factor requirements, formulas 3.1 to 3.4, and transmission and distribution loss treatment

    2026-08-19

  • CDP

    2026 Questions 7.8 and 20.7 on gross global Scope 3 emissions and exclusions

    2026-08-19

  • Dubai Electricity and Water Authority

    UAE example's 0.3833 tCO2e/MWh grid factor and 2% electricity transmission and distribution loss rate

    2026-08-19

Last verified 2026-08-19

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Scope 3 Category 3: Fuel- and energy-related activities Definition | Keslio