
Frequently Asked Questions
Supplier emissions data coverage
No. DitchCarbon covers over 2 million organisations worldwide, and coverage is not restricted by country or region. Where a company has not disclosed, we apply industry and region specific estimates. Every figure carries its source and change history, so you can see exactly what came from where.
Continuous refresh, with documented sources. New disclosures, filings and direct submissions are ingested as they are published, so a profile can change at any point in the year. Most teams review their supplier and portfolio data quarterly, which matches the pace at which annual reports and CDP responses appear.
Numbers you can defend within 2 weeks. We start from public data, so most of your spend or portfolio is matched and calculated before anyone contacts a single organisation. A recent deployment reached about 60% of a large supplier base within 2 weeks. Targeted outreach then fills the gaps that change your total, and coverage gaps are shown, not hidden.
Over 2 million organisations. That includes listed companies, private companies, and the long tail of small suppliers that usually sit outside emissions databases. Entity resolution against DUNS, LEI and ISIN identifiers matches your supplier list or portfolio holdings to the right entity before anything is calculated.
We estimate, and we label the estimate. Where a company has published nothing, DitchCarbon applies industry and region specific emission factors, marks the figure as estimated, and shows the method behind it. The estimate is replaced automatically when that organisation discloses or claims its profile and submits data.
Four sources: direct disclosures from organisations that claim their public profile, disclosure programmes including CDP, SBTi and the UN Global Compact, published sustainability reports and company filings, and private files such as LCA and PCF data shared by an organisation with its own customer only. Every figure carries its source and change history.
Scope 3 methodology and calculation
Yes. When an organisation discloses its own Scope 1, Scope 2 and relevant Scope 3 figures, DitchCarbon uses those rather than an industry average, and the result flows into your Category 1 and Category 2 totals. Where nothing is disclosed we fall back to an estimate and label it as one.
Where an organisation discloses, we derive a supplier-specific factor from its own reported Scope 1, Scope 2 and relevant upstream Scope 3. Where it does not, we apply published industry factor sets, currently EPA data for service categories because of its granularity. Our emission factor methodology was independently assessed by Globus Thenken, August 2025.
Services get the same treatment as goods. If the supplier reports Scope 1, Scope 2 and relevant upstream Scope 3, we build a supplier-specific spend-based factor from those figures. If not, we apply an industry factor, currently from the EPA set, which is granular across service categories such as consulting, logistics and software.
No. DitchCarbon uses the most specific method your data supports: product level where LCA or PCF data exists, supplier-specific spend-based where an organisation discloses its own emissions, and industry spend-based only where nothing has been published. Each figure shows which of the three produced it.
With published industry and region specific factor sets, rather than one global average. Each estimate carries its method and source, sits next to a data quality indicator, and is superseded as soon as the organisation discloses. The computational methodology behind these spend-based estimates was independently assessed by Globus Thenken, August 2025.
Supplier benchmarking, scoring & risk Insights
Against its industry peers, on four inputs: emissions intensity, disclosure quality, climate commitments such as validated science-based targets and CDP responses, and the direction of travel over time. The score shows which inputs drove it, so a category manager or a portfolio analyst can see why one organisation ranks below another.
Yes. Emissions intensity is compared against industry peers, so organisations well above their peer group surface without you setting a threshold first. Procurement teams use this to choose engagement targets by category. Finance teams use the same view across a portfolio.
Disclosure behaviour and commitments. An organisation that does not measure or publish scores lower. We also weigh its industry, the emissions trend over time, and participation in CDP and the Science Based Targets initiative, because both are evidence that a company is managing emissions rather than reporting them once.
Yes. Every profile carries a data quality indicator showing whether the figure was disclosed, third-party assured, or estimated. You can filter on it to separate the organisations with assured numbers from the ones you need to engage, which is also how PCAF data quality scoring works for a portfolio.
The full method is published, including the inputs, the weightings, and how peer groups are drawn. Read the DitchCarbon score methodology.
Supplier engagement & data collection
Very little. A supplier or portfolio company can claim its profile, review the data we have already gathered, and correct it, or simply email a file in whatever format it already holds. There is no fixed questionnaire, and the same answer can be reused for every other customer or investor that asks.
Yes. Outreach uses a short template that states exactly what is in and out of scope, so the recipient can see the whole ask on one screen. Submissions arrive in any format, are checked, and are passed into your systems, Salesforce included.
The chasing. Finding disclosures, reading reports, extracting the figures and matching them to the right legal entity all happen before anyone on your team opens a spreadsheet. Your analysts spend their time on engagement and reduction planning instead of on data collection.
A prepopulated profile to check rather than a blank form, plus documentation and a support contact. Everything is free to them, including a simple calculator for organisations measuring for the first time, and reduction recommendations once their data is in.
Higher than a cold survey. A prepopulated request asks an organisation to check figures we have already gathered rather than to compile them, which gets a higher supplier response rate than a blank questionnaire. Coverage does not depend on replies either: public data and labelled estimates cover the base, and outreach is aimed only at the organisations where a primary figure would change your total.
Yes. Any organisation can claim its profile and submit or update data itself, at no cost. Each submission is checked, dated and shown with its source, and it is then visible to every customer or investor asking that organisation for numbers.
Data quality, auditability & integrity
DitchCarbon is the only specialist Scope 3 tool with third-party assurance of its calculation methodology. Our published benchmark lists every carbon software vendor we checked, verified or not, with the verifier and the evidence for each, so you can check the claim rather than take it.
Every figure carries its source and change history, so an auditor can trace a reported total back to the document it came from. The DitchCarbon calculator is verified to ISO 14064-3, limited assurance, by UL Solutions, renewed annually. DitchCarbon data has also been used in emissions reports that were subsequently assured by ten different third-party assurance providers, including Big Four firms. The reports are downloadable from our trust centre.
For Scope 3 categories 1, 2 and 15, yes. DitchCarbon is a specialist Scope 3 carbon accounting tool rather than a full inventory platform, so it holds the verified supplier and portfolio data behind those categories and feeds your inventory or reporting system. That replaces fragmented spreadsheets and annual snapshots with continuous refresh and documented sources.
Yes. We accept product carbon footprints in any format, extract the figures, and flag quality problems, including whether a submission meets the PACT framework. The check result travels with the data point, so you can see which PCFs are usable in reporting and which need to go back to the supplier.
Entity resolution against DUNS, LEI and ISIN identifiers, plus company name, website domain and email. Send a supplier list or portfolio holdings in whichever identifiers you already hold. Parent and subsidiary relationships are resolved as well, so emissions land on the correct entity rather than the group.
Yes. Every figure links to its source, deep linked to the page it came from, and shows whether the underlying number was third-party assured, disclosed without assurance, or estimated. That is the level of provenance a third-party auditor asks for first.
Yes. Exports carry the same provenance as the application: source documents, assurance status, the method used, and the change history for every figure. The evidence is auditable in the file itself, so nothing has to be reassembled at reporting time.
Three layers. AI extraction is reviewed by a team of 15 analysts, who check anything that looks wrong, whether that is a bad extraction, an ambiguous unit, or an error in the source document itself. Automated checks compare each figure against the organisation's own history and its peer range. The calculator that produces the numbers is verified to ISO 14064-3, limited assurance, by UL Solutions, renewed annually: see the reports in our trust centre.
Extracted figures are validated automatically against anomalies, unit errors and the organisation's own reporting history. Anything that fails escalates to an analyst before it enters the platform. Nothing reaches your reporting on an automated pass alone.
Procurement & workflow integration
Yes. Emissions can be viewed by purchasing category as well as by supplier, with reduction initiatives drawn from documented case studies that you can reuse in a QBR or an SRM tool. Category managers see the same data as the sustainability team, cut their way.
Yes. Each profile carries recommended actions, relevant case studies and suggested contract terms, based on where that organisation sits against its industry peers. The recommendations are specific to the sector and the maturity level rather than a generic checklist.
Yes. Scores and peer benchmarks are available at the point of sourcing, so a buyer can see a bidder's emissions intensity, disclosure quality and target status before award. Some teams set a minimum disclosure requirement, others weight it alongside cost and quality.
Yes. DitchCarbon fits the tools you already run, so scores, benchmarks and emissions data appear in the ERP, P2P or BI system your category managers already use. Nobody has to open a second application to see which organisations matter most in a sourcing event.
Yes. There are existing integrations with SAP, Coupa and Salesforce, plus an API and file based options for everything else. Data moves both ways: spend comes in, and emissions, scores and evidence go back out to the system your team already works in.
Sustainability reporting & compliance frameworks
CDP runs a global environmental disclosure system, so a CDP response usually means the organisation has measured its emissions and had them reviewed, sometimes externally. DitchCarbon ingests CDP responses, so a disclosed figure replaces an estimate on that profile automatically. Our calculation methodology explains how CDP data is used.
Renewable energy share is not included by default. Custom fields can be added, including renewable electricity percentage and other sustainability KPIs you already collect, and they sit on the same profile as the emissions data so the two export together.
The data model follows what the standards ask for: emissions split by Scope 3 category, data quality and provenance on every figure, and the method behind every estimate. Whether a given report meets CSRD or SFDR is a determination for you and your auditor, and the evidence trail is built for that conversation.
Both are ingested and tracked. CDP responses feed supplier and portfolio profiles, and SBTi target status, including near-term targets, long-term targets and net zero commitments, sits on every profile. Teams use it to report supplier engagement targets and to see which organisations hold validated targets. Free SBTi data API.
Platform access, pricing & commercial model
Never. Charging an organisation to share its own emissions data is a model we will not run. Suppliers and portfolio companies get a free profile, free data updates with no form to fill in, reduction recommendations, emissions forecasting, and a simple calculator for anyone measuring for the first time.
Yes. Send a small set, 20 organisations is common, and we pull the data under NDA, give you a login, and show you the sources and the exports. You see the actual provenance for your own suppliers or holdings rather than a demo dataset.
An annual subscription, scaled to the size of your organisation, with up to 50 users on a typical licence. Purchasing through AWS Marketplace is being enabled to simplify onboarding. Pricing detail.
No. The same data is available through the API and through existing integrations with the procurement and sustainability systems teams already run, SAP included. Most customers use the application for analysis and the integration for pushing data into their own reporting.
Partner & reseller FAQs
Each client sits in its own environment, with its own portal, analytics and access control. DitchCarbon is GDPR compliant, with encryption in transit and at rest. The SOC 2 Type II report and penetration testing summary are downloadable from our trust centre.
Yes. Reports can carry your brand alongside ours, and white label options are available for the wider platform. The provenance and evidence inside the report stay intact, so your client's auditor sees the same source trail we would show.
Onboarding sessions for your team, API and methodology documentation, and a named contact for ongoing support. Partners get the same methodology material we give customers, so your consultants can answer a client question about how a figure was produced without coming back to us.
Yes. One login can span many client environments, each with separate data, analytics and reporting. Consultancies run several client programmes side by side without moving data between accounts.
Yes. Peer and industry benchmarks and DitchCarbon scores are available to partners for their own client reporting, with the same provenance as the emissions data underneath them.
Yes. The API and white label options let you build your own front end or embed DitchCarbon data in an existing client portal. The calculation methodology is the part that does not change, because that is what the ISO 14064-3 verification covers.
Glossary
ESRS E1 is the climate change standard within the European Sustainability Reporting Standards, and it is the standard that carries the emissions numbers in a CSRD report.
Climate-informed sourcing means using supplier emissions data in the sourcing decision itself, alongside cost, quality and risk, rather than reporting on emissions after the purchase order is raised. It needs a comparable emissions figure and a peer benchmark for each bidder at the point of award. DitchCarbon supplies both, inside the procurement tools teams already run.
Greenhouse gas accounting covers all seven greenhouse gases named in the Kyoto Protocol, converted to a single carbon dioxide equivalent figure. Carbon accounting is the common shorthand for the same work, and strictly refers to carbon dioxide alone. In practice both terms describe the same exercise, and reported figures are almost always in CO2e.
The GHG Protocol is the most widely used standard for corporate greenhouse gas accounting. It splits emissions into Scope 1, direct emissions from owned or controlled sources, Scope 2, indirect emissions from purchased energy, and Scope 3, all other indirect emissions in the value chain, which it divides into 15 categories. The Corporate Standard and the Scope 3 Standard are the two documents most reporting refers to.
The Corporate Sustainability Reporting Directive is the EU directive that sets who must report sustainability information and requires it to be assured. It applies through the European Sustainability Reporting Standards, and its Scope 3 requirements are what bring most supply chain data programmes into existence. Reported figures need provenance, because an assurance provider will ask where each number came from.
The European Sustainability Reporting Standards set out what a company must disclose under CSRD. ESRS E1 is the climate standard, and it asks for gross Scope 1, Scope 2 and Scope 3 emissions, the methods and assumptions behind them, and the share of the total based on primary data from the value chain. That last requirement is why data quality labelling matters as much as the total.
The revised ESRS were adopted as a delegated act on 3 July 2026, cutting mandatory datapoints by around 60% and restructuring the climate standard. For the disclosure requirements in full, see what is ESRS E1? and what is CSRD?
The Corporate Sustainability Due Diligence Directive requires companies to identify, prevent and account for adverse human rights and environmental impacts across their own operations and their value chains. In practice it means knowing who your suppliers are and being able to evidence what you checked. The same supplier data that supports a Scope 3 calculation supports the environmental part of that record.
The International Sustainability Standards Board sets a global baseline for sustainability disclosure through IFRS S1 and IFRS S2. The standards are written for investors, so they emphasise comparability and require companies to disclose the basis of preparation for each metric. IFRS S2 requires Scope 3 emissions and the categories included.
The Task Force on Climate-related Financial Disclosures published recommendations for reporting climate related financial risk across four pillars: governance, strategy, risk management, and metrics and targets. Its recommendations have since been absorbed into IFRS S2, so most companies now meet them through ISSB reporting rather than through a standalone TCFD report.
IFRS S2 sets the requirements for disclosing climate-related financial information, so an organisation can report its climate risks and opportunities. It asks for governance, strategy, risk management and metrics, including Scope 1, Scope 2 and Scope 3 emissions. It is written for investors, so it also requires the basis of preparation behind each metric, which is why provenance on supplier emissions data matters as much as the total.
EcoVadis is a global platform that provides business sustainability ratings for supply chains. It assesses suppliers across environmental, labour and human rights, ethics, and sustainable procurement themes. These ratings offer organisations insights into their suppliers' performance, supporting more informed procurement decisions and contributing to Scope 3 emissions management.
CDP is a non-profit that runs a global environmental disclosure system covering climate change, water security and deforestation. Companies respond to a structured questionnaire, and their customers and investors request those responses through CDP's supply chain and capital markets programmes. A CDP response is a useful primary source for supplier emissions, and DitchCarbon ingests them directly.
Carbon disclosure involves companies publicly reporting their greenhouse gas emissions, typically categorised into Scope 1 (direct), Scope 2 (from purchased energy), and Scope 3 (value chain emissions). Organisations undertake this to demonstrate transparency, manage climate-related risks, and inform their decarbonisation strategies. Accurate, verified Scope 3 data is crucial for credible reporting and achieving meaningful emission reductions across the value chain.
A corporate emissions database holds emissions data for companies rather than for products or activities: Scope 1, Scope 2 and whatever Scope 3 each company discloses, with the activity data and emission factors behind it. Their value depends on coverage of private companies and on whether each figure shows its source. DitchCarbon covers over 2 million organisations, and every figure carries its source and change history.
Entity matching identifies the same company across different sources, so a supplier in your ERP, a filing, a CDP response and a portfolio holding all resolve to one organisation. Without it a Scope 3 total contains duplicates and gaps in equal measure. DitchCarbon matches on DUNS, LEI and ISIN identifiers alongside company name, website domain and email.
A supplier or counterparty in your system is often one entity in a group, and the published emissions may sit at the parent. Reporting accurately means resolving which entity you actually transact with and where the disclosed figure belongs, or the same emissions get counted twice. DitchCarbon resolves entities against DUNS, LEI and ISIN identifiers and maps parent and subsidiary relationships before anything is aggregated.
A carbon budget represents the maximum amount of greenhouse gas emissions that can be released into the atmosphere over a specific period, while still having a reasonable chance of limiting global warming to a particular temperature target, such as 1.5°C. For organisations, this global limit translates into specific emissions targets, guiding their decarbonisation strategies.
Avoided emissions represent the greenhouse gas reductions that occur outside a company's direct value chain, often enabled by the use of its products or services. While they can highlight positive climate impact, these emissions are challenging to quantify and verify reliably. They are not typically included in Scope 1, 2, or 3 reporting and should be communicated with clear caveats, distinct from direct decarbonisation efforts.
An emissions baseline is a quantified inventory for a chosen historical year, used as the fixed reference point for every later comparison. Targets are set against it, so its coverage and method have to be documented well enough to defend years later. Recalculation policies matter too, since acquisitions and method changes can otherwise make progress look like reduction.
Carbon offsets compensate for emissions by funding projects that reduce or avoid greenhouse gases elsewhere, such as renewable energy or forest protection. Carbon removals, conversely, actively extract carbon dioxide directly from the atmosphere and store it permanently. While both contribute to climate action, removals directly decrease atmospheric CO2 concentrations.
Credible net zero targets are grounded in verified, comprehensive emissions data, particularly for Scope 3. They require a clear, science-aligned reduction pathway, supported by transparent reporting and auditable outputs. Organisations build trust by demonstrating provenance for their data and a practical plan to achieve their goals.
Transition plans outline a company's strategy to achieve its climate targets, typically aligning with a 1.5°C pathway. They must include clear, measurable emissions reduction targets, a detailed plan of actions, and a robust system for tracking progress. For many organisations, this critically involves addressing Scope 3 emissions with verifiable supplier data and a credible reduction trajectory.
Climate risk refers to the potential negative impacts of climate change on an organisation's operations, assets, and financial performance. These risks typically fall into two categories: physical risks, such as extreme weather events and resource scarcity, and transition risks, including policy changes, market shifts, technological advancements, and reputational damage. Understanding and managing these risks, particularly within the supply chain, is crucial for long-term resilience and strategic planning.
Physical climate risks stem from the direct impacts of climate change, such as extreme weather events, rising sea levels, or resource scarcity. In contrast, transition risks emerge from the shift towards a low-carbon economy, encompassing policy changes, technological advancements, market shifts, and reputational impacts.
Physical climate risks are the direct impacts of climate change on physical assets, operations, and supply chains. These include acute events like floods, droughts, and heatwaves, alongside chronic shifts such as sea level rise and changing precipitation patterns. Businesses face impacts ranging from operational disruptions and infrastructure damage to increased insurance premiums and reduced asset values, affecting long-term viability and financial performance.
Scope 1 stationary combustion refers to direct greenhouse gas emissions from burning fuels in fixed equipment owned or controlled by an organisation. This category includes emissions from sources such as boilers, furnaces, and generators used for heating, industrial processes, or on-site electricity generation. Accurately measuring these emissions is crucial for understanding an organisation's direct carbon footprint and setting reduction targets.
Scope 1 mobile combustion refers to direct greenhouse gas emissions from fuels burned in vehicles and equipment owned or controlled by an organisation. This category includes emissions from company cars, trucks, vans, and other mobile machinery using fuels such as petrol, diesel, or natural gas. Accurately measuring these emissions is a foundational step in understanding and reducing an organisation's direct carbon footprint.
Scope 1 emissions are direct greenhouse gas emissions that an organisation owns or controls. These typically arise from sources like company vehicles, on-site fuel combustion in boilers or furnaces, and fugitive emissions from refrigerants. Accurately measuring Scope 1 is a foundational step in any organisation's decarbonisation strategy.
Scope 1 process emissions are direct greenhouse gas emissions released from industrial processes that chemically or physically transform materials, rather than from fuel combustion. For example, these include CO2 released during cement production or methane from chemical manufacturing. Companies must accurately measure and report these emissions to gain a complete picture of their direct operational impact. This forms a credible foundation for identifying reduction opportunities and advancing decarbonisation efforts.
Fugitive emissions are unintentional releases of greenhouse gases into the atmosphere from an organisation's owned or controlled sources. These are categorised as Scope 1 emissions, originating directly from activities like equipment leaks, industrial processes, or natural gas systems. Common examples include methane leaks from pipelines, refrigerants escaping from cooling systems, or emissions from wastewater treatment. Identifying and managing these direct emissions is crucial for an organisation's decarbonisation efforts.
Purchased steam is a Scope 2 emission, reflecting indirect emissions from the generation of energy bought and consumed by your organisation. While electricity is the most common Scope 2 emission, purchased steam, heating, and cooling are also included.
Scope 2 purchased heat emissions are the indirect greenhouse gas emissions resulting from the generation of heat that an organisation buys from an external provider. These emissions occur at the facility producing the heat, not at the consuming organisation's site.
Scope 2 purchased electricity emissions are indirect greenhouse gas emissions that arise from the generation of electricity an organisation buys and consumes. These emissions occur at the power plant or utility, rather than directly from the organisation's own operations. An example is the emissions associated with the electricity used to power an office building, retail store, or manufacturing facility.
Purchased cooling emissions fall under Scope 2 of the Greenhouse Gas Protocol. These are indirect greenhouse gas emissions from the generation of cooling an organisation buys from an external utility or provider. This includes cooling used for air conditioning, refrigeration, or industrial processes, where the energy generation occurs off-site.
Location-based Scope 2 emissions reflect the average emissions intensity of the electricity grid where consumption occurs. Market-based Scope 2 emissions, conversely, account for emissions from electricity an organisation has specifically purchased, often through contracts like Renewable Energy Certificates or Power Purchase Agreements. This distinction allows organisations to report both their physical location's impact and the impact of their procurement choices.
Scope 3 emissions are all indirect greenhouse gas emissions in a company's value chain, upstream and downstream, excluding direct emissions (Scope 1) and purchased energy (Scope 2). The GHG Protocol splits them into 15 categories. For most organisations Scope 3 is the largest part of the total and the hardest to measure, because the data belongs to other companies.
Market-based emissions represent a method for calculating Scope 2 greenhouse gas emissions, reflecting the emissions associated with the electricity or other energy an organisation has specifically purchased or contracted for. This approach allows companies to account for renewable energy purchases, such as through Power Purchase Agreements or Renewable Energy Certificates. It provides a more accurate picture of an organisation's decarbonisation efforts when actively procuring low-carbon energy sources.
Upstream Scope 3 emissions are indirect greenhouse gas emissions that occur in the value chain of a reporting company, before the company's own operations. These emissions are generated from goods and services purchased or acquired by the company. Common examples include emissions from purchased goods and services, capital goods, and upstream transportation and distribution.
Scope 3 Category 1 covers the upstream emissions from producing everything an organisation buys, from raw materials and components to professional services and software. It is calculated supplier by supplier where they disclose, and from spend and an industry factor where they do not. DitchCarbon holds a figure and a data quality label for each supplier so both routes sit in one total.
Downstream Scope 3 emissions are indirect greenhouse gas emissions that occur outside of an organisation's direct control, arising from its products and services after they have been sold. These emissions include the use of sold products, their end-of-life treatment, downstream transportation and distribution, and the operation of franchises. Understanding these categories is crucial for a comprehensive decarbonisation strategy.
Scope 3 Category 4, upstream transportation and distribution, encompasses emissions from transporting products purchased by the reporting organisation. This includes all modes of transport, such as road, rail, air, and sea, for goods and services moving between a company's tier 1 suppliers and its own operations. It also covers emissions from third-party logistics providers involved in these movements.
Scope 3 Category 2 accounts for the emissions from the production of capital goods purchased or acquired by an organisation. This includes assets such as buildings, machinery, equipment, and vehicles, which are not consumed within the reporting year.
Scope 3 Category 3 covers the upstream emissions from the production of fuels and energy purchased and consumed by your organisation. These emissions are not already accounted for in Scope 1 or Scope 2. This includes the extraction, processing, and transportation of fuels, along with the generation of purchased electricity, steam, heating, and cooling.
Scope 3 Category 5 accounts for greenhouse gas emissions from the disposal and treatment of waste generated in an organisation's owned or controlled operations. This includes waste sent to landfills, incinerators, or facilities for recycling and composting. Emissions arise from processes such as the decomposition of organic materials, energy consumption during treatment, or methane release from landfills.
Scope 3 Category 7, employee commuting, covers emissions from the daily travel of employees between their homes and workplaces. This includes various transport modes like personal vehicles, public transport, cycling, and walking.
Business travel emissions, under Scope 3 Category 6, account for greenhouse gases generated by the transportation of employees for business-related activities. This includes emissions from air travel, rail, road vehicles, and other modes of transport used for company purposes. Accurately tracking these emissions is crucial for understanding an organisation's full carbon footprint and identifying reduction opportunities.
Scope 3 Category 8, upstream leased assets, includes emissions from the operation of assets leased by the reporting company (the lessee) from an upstream entity. These emissions arise from facilities, equipment, or vehicles that the reporting company operates but does not own. This category ensures a comprehensive accounting of operational emissions not already covered in Scope 1 or Scope 2.
Downstream transportation and distribution (Scope 3 Category 9) accounts for emissions from transporting and distributing products sold by the reporting organisation. This includes all activities from the point of sale or distribution centre to the end consumer. It captures the environmental impact of delivering finished goods after they have left the company's direct control, providing a complete picture of a product's lifecycle emissions.
Use of sold products, or Scope 3 Category 11, accounts for the greenhouse gas emissions generated when customers use the goods and services a company sells. This category includes emissions from products that consume energy during their lifetime, such as electronics or vehicles, or those that release emissions through their application, like fertilisers. Understanding these emissions helps organisations identify significant reduction opportunities beyond their direct operations.
Scope 3 Category 10 accounts for emissions from the processing of intermediate products your organisation sells to other businesses. These emissions arise when downstream companies further manufacture or transform your sold products before they become a final good.
Scope 3 Category 12 accounts for greenhouse gas emissions from the waste disposal and treatment of products an organisation sells, once those products reach the end of their useful life. This includes emissions from processes such as landfilling, incineration, recycling, and composting. Accurately measuring these emissions helps organisations understand the full lifecycle impact of their products and identify opportunities for circularity.
Scope 3 Category 13, downstream leased assets, includes emissions from the operation of assets owned by the reporting organisation but leased to other entities. These emissions arise from the lessee's use of the leased assets, such as buildings, vehicles, or equipment. The reporting organisation accounts for these emissions because it retains ownership of the assets.
Scope 3 Category 14 covers greenhouse gas emissions from the operation of franchises that are not owned or controlled by the reporting company. This category specifically applies to franchisors, who account for the emissions generated by their franchisees' activities. It ensures a complete picture of emissions across the value chain, beyond direct operational control.
Scope 3 Category 15 covers the emissions associated with an organisation's investments, loans and other financial activities. For financial institutions these are the emissions the PCAF standard governs, and they are usually the largest part of the footprint by a wide margin. DitchCarbon provides company level emissions data for Category 15 as well as for categories 1 and 2, including private companies that hold no public disclosure. Financed emissions and portfolio analysis: https://ditchcarbon.com/solutions/financed-emissions.
Financed emissions are the greenhouse gas emissions attributable to a financial institution's loans and investments, reported under Scope 3 Category 15 and calculated using the PCAF methodology. Each figure is attributed to the lender or investor in proportion to its share of the counterparty, and each carries a data quality score. Counterparty coverage, especially of private companies, is what usually limits the result.
Portfolio emissions are the greenhouse gas emissions attributable to the companies an investor or lender holds, weighted by the size of each holding. They sit in Scope 3 Category 15 for financial institutions and follow the PCAF attribution rules. Reporting them credibly depends on counterparty level data and a data quality score for each figure rather than a single portfolio average.
A portfolio carbon footprint refers to the total greenhouse gas emissions across Scopes 1, 2, and 3 attributable to an organisation's operations and value chain. Financed emissions, on the other hand, are a specific subset of Scope 3 emissions (Category 15) for financial institutions. These represent the emissions associated with the loans, investments, and other financial services a financial institution provides to its clients.
Insured emissions are the emissions associated with the activities an insurer underwrites, treated as a distinct category by PCAF alongside financed emissions. Measuring them needs company level data on the insured party, which is where most programmes stall, because much of the book is private companies. DitchCarbon holds emissions data for over 2 million organisations, private companies included.
Carbon intensity measures an organisation's greenhouse gas emissions relative to a specific unit of activity or economic output. The general formula is Total Emissions / Activity Unit. For example, it can be expressed as tonnes of CO2e per million pounds of revenue, per unit of product manufactured, or per kilowatt-hour of energy produced. This metric helps organisations benchmark their performance and track decarbonisation progress over time.
Weighted average carbon intensity (WACI) is a metric that assesses the overall carbon emissions of a collection of entities, weighted by their relative economic contribution. It calculates each entity's carbon emissions per unit of revenue, then combines these intensities based on their proportion within the total. This provides an aggregated view of carbon exposure, helping organisations understand the intensity of their value chain.
An emission factor converts activity data into greenhouse gas emissions: per kilowatt hour of electricity, per tonne of material, per kilometre travelled, or per unit of spend. Organisations use them to calculate Scope 3 where primary supplier data is not yet available. DitchCarbon's industry emission factor methodology for spend-based Category 1 and Category 2 was independently assessed by Globus Thenken, August 2025.
Weighted Average Carbon Intensity (WACI) is a metric investors use to assess the carbon footprint of their investment portfolios. It calculates the Scope 1 and Scope 2 emissions of portfolio companies, weighted by the proportion of investment in each. Investors utilise WACI to evaluate climate risk, benchmark portfolio performance, and inform engagement with companies to encourage decarbonisation. This provides a clear indication of a portfolio's exposure to carbon intensive assets.
Spend-based emissions calculations estimate Scope 3 emissions using the financial value of purchased goods and services. This method applies average emission factors, derived from economic input-output models, to your procurement spend data. While useful for an initial estimate and identifying hotspots, it is a high-level approach that does not reflect actual supplier emissions.
Activity-based emissions calculations determine greenhouse gas emissions by multiplying specific activity data by relevant emission factors. For instance, the distance travelled by a vehicle is multiplied by its fuel consumption and the emissions per unit of fuel. This method provides a more precise and verifiable measure of emissions compared to spend-based approaches, offering clear insights for reduction strategies.
Supplier-specific emissions data provides a verifiable and accurate foundation for your Scope 3 calculations, moving beyond unreliable industry averages. This precision allows you to identify true emissions hotspots and set credible, actionable reduction targets. By understanding actual supplier performance, organisations can engage effectively to drive measurable decarbonisation and achieve auditable outputs.
Primary emissions data is directly reported or measured from the source, such as a supplier's verified energy consumption or actual emissions. This offers the highest accuracy and clear provenance for auditable reporting. Secondary emissions data, by contrast, relies on estimates, averages, or industry benchmarks to approximate emissions when direct data is unavailable. While secondary data provides necessary coverage, DitchCarbon prioritises collecting verified primary data to ensure the most credible and actionable Scope 3 calculations.
Reported emissions data is emissions a company has published itself, in an annual report, a CDP response, a sustainability report or a regulatory filing. It is stronger evidence than an estimate because the figure has a named source and often carries third-party assurance. It is not automatically complete: many reports cover Scope 1 and Scope 2 only, and disclose part of Scope 3 or none of it.
Estimated emissions data provides a modelled or proxy view of a supplier's emissions when primary data is unavailable. DitchCarbon uses this data to establish an initial Scope 3 baseline, identify potential hotspots, and address coverage gaps, especially for long tail suppliers. This approach enables organisations to gain early insights and prioritise engagement efforts while working towards collecting verified supplier data. It serves as a crucial starting point for a credible decarbonisation pathway.
PCAF, the Partnership for Carbon Accounting Financials, publishes the global standard financial institutions use to measure and disclose the emissions associated with their lending and investment portfolios. It sets out attribution factors by asset class and a data quality score from 1 to 5 for each figure. DitchCarbon supplies the counterparty emissions data behind those calculations, with the source and change history on every figure: https://ditchcarbon.com/solutions/financed-emissions.
PCAF scores every emissions figure from 1 to 5, where 1 is a verified reported number from the counterparty and 5 is an estimate derived from sector averages. A portfolio's average score tells a reviewer how much of the total rests on estimates. DitchCarbon shows which counterparty figures were disclosed, which were third-party assured and which were estimated, so the score can be evidenced line by line rather than asserted.
The Science Based Targets initiative (SBTi) helps companies set ambitious emissions reduction targets aligned with the latest climate science. These targets ensure organisations contribute to limiting global warming to 1.5°C.
Net zero means achieving an overall balance between the greenhouse gases emitted into the atmosphere and those removed from it. Organisations reach this goal by significantly reducing their emissions across all scopes, especially Scope 3, and then neutralising any residual emissions through verified carbon removal.
Science-based targets (SBTs) are emissions reduction goals set by companies to align with the latest climate science, aiming to limit global warming to 1.5°C or well below 2°C above pre-industrial levels. These targets provide a clear pathway for organisations to reduce their greenhouse gas emissions across their operations and value chain. Examples include commitments to reduce Scope 1 and 2 emissions by a certain percentage, and to engage suppliers to reduce Scope 3 emissions, often over a defined timeframe.
Net zero means achieving a balance where any greenhouse gas emissions released into the atmosphere are offset by an equivalent amount removed, with a primary focus on deep, absolute emission reductions across all scopes. Carbon neutrality, by contrast, typically refers to balancing carbon dioxide emissions specifically, often through purchasing offsets, without necessarily prioritising comprehensive internal decarbonisation. Net zero represents a more ambitious and holistic commitment to reducing an organisation's climate impact.
Sustainable procurement integrates environmental and social considerations into an organisation's purchasing decisions, moving beyond traditional factors like cost and quality. This approach helps select suppliers that align with decarbonisation goals, driving measurable reductions in Scope 3 emissions.
Decarbonisation refers to the process of reducing greenhouse gas emissions, primarily carbon dioxide, across an organisation's operations and value chain. Key strategies involve transitioning to renewable energy, improving energy efficiency, and optimising supply chain activities to lower embedded emissions. Practical examples include sourcing green electricity, implementing sustainable logistics, and collaborating with suppliers to reduce their carbon footprints.
Standards including ESRS E1 and the GHG Protocol Scope 3 Standard ask what share of a Scope 3 total rests on primary data from the value chain, which makes supplier engagement a reporting requirement rather than a nice to have. The practical problem is volume: a long tail of suppliers, each asked by many customers. Prepopulating what is already public, and asking only where a primary figure changes the total, is what makes it tractable.
Carbon accounting involves systematically measuring and reporting an organisation's greenhouse gas (GHG) emissions across its direct operations and entire value chain. This process helps identify emission hotspots, track progress towards reduction targets, and generate auditable outputs. For many enterprises, this primarily focuses on accurately calculating Scope 3 emissions, often through verified supplier data. Effective carbon accounting provides the clear pathway needed to achieve decarbonisation goals.
Scope 2 emissions are indirect greenhouse gas emissions resulting from the generation of purchased or acquired electricity, steam, heat, or cooling consumed by a reporting organisation. These emissions physically occur at the utility provider's facilities, rather than directly from the company's own operations. Measuring Scope 2 is a key step in understanding an organisation's energy footprint and identifying opportunities for decarbonisation.
Scope 3 emissions are the indirect greenhouse gas emissions in a company's value chain. Scope 1 covers direct emissions from sources the company owns or controls, Scope 2 covers purchased energy, and Scope 3 covers everything else, from the goods and services you buy through to how customers use what you sell.
For most organisations Scope 3 is both the largest part of the footprint and the hardest part to measure, because the data belongs to other companies. It runs from purchased materials to the end of life treatment of your products.
Put simply, Scope 3 emissions are all the emissions you are responsible for but do not directly create. That includes your supply chain, business travel, employee commuting, and how customers use your products.
Measuring them is the part every reporting standard now asks about, and the part most programmes stall on.
Why is Scope 3 a priority now?
Scope 3 sits inside reporting requirements, procurement decisions and investor questions at the same time. Three reasons it moves up the list:
- It is where the emissions are. For most organisations the value chain is a larger source than everything they own and operate.
- Reporting standards ask for it by category, and ask how much of the total rests on primary data rather than averages.
- It is the part you can only move with other organisations, which makes supplier and portfolio engagement the work rather than an add on.
The obstacle has always been data. Gathering figures from hundreds or thousands of suppliers by hand pushes teams onto proxy data and averages that an auditor will question, and by the time the spreadsheet is finished the year has moved on.
The 15 categories of Scope 3
The GHG Protocol splits Scope 3 into 15 categories so an organisation can map its value chain and see where the emissions sit. Categories 1 to 8 are upstream, categories 9 to 15 are downstream.
Upstream categories
These cover the goods, services and activities that reach your organisation.
1. Purchased goods and services: emissions from the production of all the products and services you buy.
2. Capital goods: emissions from producing capital goods like machinery, buildings, and vehicles.
3. Fuel and energy related activities: emissions from the production of fuels and energy you have purchased and consumed (not already covered in Scope 1 or 2).
4. Upstream transportation and distribution: emissions from transporting and distributing products from your Tier 1 suppliers to your own facilities.
5. Waste generated in operations: emissions from disposing of waste created in your operations.
6. Business travel: emissions from employee travel for business purposes, including flights, trains and hotels.
7. Employee commuting: emissions from your employees' travel between their homes and their workplaces.
8. Upstream leased assets: emissions from operating assets that you lease.
Downstream categories
These cover what happens to your products and services after they leave you.
9. Downstream transportation and distribution: emissions from transporting and distributing products to the end consumer.
10. Processing of sold products: emissions from the processing of your intermediate products by other companies.
11. Use of sold products: emissions from the use of your products by consumers.
12. End-of-life treatment of sold products: emissions from the disposal and treatment of your products after they are used.
13. Downstream leased assets: emissions from the operation of assets you own and lease to others.
14. Franchises: emissions from the operation of your franchises.
15. Investments: emissions associated with your financial investments.
From chasing suppliers to auditable numbers
The old way of running Scope 3 was chasing suppliers, holding the result in a master spreadsheet, filling the gaps with industry averages, and defending the total to an auditor months later. Teams describe it as heads in spreadsheets, and the answer arrives too late to change a sourcing decision.
OLD: chase suppliers, master spreadsheet, industry averages, audit ping pong, top 50 suppliers only.
NEW: verified supplier and portfolio data in one place, continuous refresh with documented sources, evidence attached to every figure.
Consolidating verified data from disclosures, filings and direct submissions gives you one source of truth with the provenance attached, so a figure can be traced to its document without anyone reopening the exercise. Numbers you can defend within 2 weeks, then a quarterly rhythm rather than an annual scramble.
That frees the team for the work that changes the number: engaging the organisations that matter, finding the reduction opportunities, and tracking whether they land. The calculator behind the figures is verified to ISO 14064-3, limited assurance, by UL Solutions, renewed annually: see the reports in our trust centre.
This is the operating model behind the data: how a supplier list or portfolio becomes a defensible Scope 3 total and then a reduction plan. Four steps, in order.
It replaces the survey cycle. Instead of asking every organisation for everything and waiting, we start from what is already published, then ask a smaller number of organisations for the figures that actually move your total.
Step 1: bring the supplier and portfolio data together
We start with the spend and supplier data you already hold, match it to the right legal entities, and attach whatever each organisation has published. That maps the value chain, shows where supplier-specific calculation is possible, and surfaces the hotspots. Numbers you can defend within 2 weeks, before anyone has been contacted.
Step 2: engage the organisations that matter
Primary data makes a Scope 3 total more defensible, and asking for it should not be a burden on either side. We contact the organisations where a primary figure would change your number, with a short localised request, and validate what comes back before it enters your dashboard. Everyone else stays covered by public data and labelled estimates.
Where an organisation cannot provide product level data, there is a documented fallback: supplier-specific activity data first, then supplier-specific spend, then published industry averages. Every figure shows which step produced it, so coverage gaps are visible rather than hidden.
Step 3: turn the data into evidence
Every figure is validated, versioned and linked to its source, so the trail from a reported total back to a document stays intact. That is what makes the output auditable, and it is what a third-party auditor asks for first. Dashboards show the hotspots, progress against targets, and the detail behind any supplier or category.
Step 4: put the data in the buying decision
Emissions data changes outcomes when a category manager sees it before award, not in a report afterwards. Scorecards and peer benchmarks sit in the procurement tools your team already uses, so bidders can be compared on emissions intensity and disclosure quality alongside cost and quality.
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