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Scope 3 categories and methodology
Scope 3 categories and methodology
Diana Nguyen avatar
Written by Diana Nguyen
Updated over a week ago

This guide outlines the calculation methodology for Scope 3 categories within Avarni. It is important to note that Avarni’s calculations align with the GHG protocol and industry best practices.

For more details on the methodology and calculations mentioned below, refer to the Technical Guidance for Calculating Scope 3 Emissions (Greenhouse Gas Protocol).

  • For information on scope 1 and 2 coverage, click here.

  • To view existing emission factor sources in Avarni, click here.

Content


Overview

Scope 3 emissions refer to greenhouse gas emissions that are associated with an organization’s value chain or supply chain, but that are not directly owned or controlled by the organization itself.

Avarni covers 14 out of the 15 categories, excluding financed emissions.

Scope 3 Categories

GHG Protocol Methodology

Covered by Avarni?

1. Purchased goods and services

  • Average data method

  • Spend based method

  • Spend based method (via supplier engagement)

Yes

2. Capital goods

  • Average data method

  • Spend based method

  • Spend based method (via supplier engagement)

Yes

3. Fuel and energy related activities

  • Supplier specific method (via supplier engagement)

  • Average data method

Yes

4. Upstream transportation and distribution

  • Fuel based method

  • Distance based method

  • Spend based method

Yes

5. Waste generated in operations

  • Supplier specific method (via supplier engagement)

  • Waste type specific method

Yes

6. Business Travel

  • Fuel based method

  • Distance based method

  • Spend based method

Yes

7. Employee commuting

  • Fuel based method

  • Distance based method

Yes

8. Upstream leased asset

  • Asset specific method

  • Lessee specific method

  • Average data method

Yes

9. Downstream transportation and distribution

  • Fuel based method

  • Distance based method

  • Spend based method

Yes

10. Processing of sold goods

  • Average data method

  • Site specific method

Yes

11. Use of sold goods

  • Direct and indirect use

Yes

12. End of life treatment of sold products

  • Waste type specific method

Yes

13. Downstream leased assets

  • Asset specific method

  • Lessee specific method

  • Average data method

Yes

14. Franchises

  • Scope 1 and 2 emissions data from franchisees

  • Floor space of each franchise

Yes

15. Investments

Unavailable

No

Avarni's calculation engine works by first processing the data you upload and using this information, our AI selects the most relevant emission factor to accurately calculate your emissions.

Within each row of your data there are fields that are used to inform the AI’s emission mapping process (e.g. Account, Description, Supplier) and then the “Amount” field is used in conjunction with the mapped emission factor to calculate your emissions, for example: mass of purchased good or service (Amount) × emission factor.

📌 What does this mean?

  • For Scope 3 Categories where the calculation methodology is made up of more than one variable (apart from the emission factor itself), these will need to be uploaded to the platform to as a single value.

  • In this guide, text highlighted in blue indicates the calculations that needs to be inputted into your file before uploading it to Avarni.

📌 Note: Below is a diagram showing how Avarni calculates Emissions:

📌 For example: The calculation for Category 4: Upstream Transportation and Distribution using the Distance based method is as follows:

mass of goods purchased (e.g. tonnes) × distance travelled in transport leg (e.g. km) × emission factor of transport mode or vehicle type*


*This means that ‘mass of goods purchased x distance travelled in transport leg (tonnes-km)’ must be calculated prior to uploading to Avarni and this calculated value used in the “Amount” field of your upload.

📌 Note: There are a large number of emission factors sources available on Avarni by default, however, some calculation methods may require emission factors that are not within our default factor library. If this is the case for you, please remember that you’re are able to upload your own factors onto Avarni. Click here to learn how to upload your emission factors onto Avarni.

Example: Below is a diagram of how Category 11 is calculated (Use of Sold Goods).

In the below example, you will first have to calculate Annual Units Sold x Average Annual Energy Consumption x Average Lifecycle (Years) to obtain the Total Amount, before uploading the data to Avarni.


Scope 3 categories and methodologies

Category 1: Purchased Goods and Services

Category 2: Capital Goods

Category 3: Fuel and Energy-Related Activities not included in Scope 1 or Scope 2

Category 4: Upstream Transportation and Distribution

* Highlighted in blue: Please note that this should be calculated and entered into your file prior to uploading to Avarni. To understand why this is necessary, click here for an explanation.

For example: Your data has 500 tonnes-km prior to uploading (100 tonnes (mass) x 5 km (distance)

Category 5: Waste Generated in Operations

Category 6: Business Travel

Category 7: Employee Commuting

💡 Tip: We suggest utilizing a survey to collect information for the Distance based method. For a sample Employee Commuting Survey, click here.

Category 8: Upstream Leased Assets

Category 9: Downstream Transportation and Distribution

* Highlighted in blue: Please note that this should be calculated and entered into your file prior to uploading to Avarni. To understand why this is necessary, click here for an explanation.

For example: Your data has 500 tonnes-km prior to uploading (100 tonnes (mass) x 5 km (distance))

Category 10: Processing of Sold Products

Category 11: Use of Sold Products

* Highlighted in blue: Please note that this should be calculated and entered into your file prior to uploading to Avarni. To understand why this is necessary, click here for an explanation.

Category 12: End-of-Life Treatment of Sold Products

* Highlighted in blue: Please note that this should be calculated and entered into your file prior to uploading to Avarni. To understand why this is necessary, click here for an explanation.

Category 13: Downstream Leased Assets

Category 14: Franchises

Category 15: Investments

Avarni does not cover emissions calculations related to Investments.

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