Scope 3 Emissions

Scope 3 Emissions Tracking for Indian Supply Chains

Track and reduce value chain emissions across 15 GHG Protocol categories. Supplier engagement tools, logistics tracking, and BRSR-ready Scope 3 disclosures for Indian companies.

What Are Scope 3 Emissions?

Scope 3 emissions are all indirect emissions in a company's value chain, both upstream (suppliers) and downstream (customers). They typically account for 70-90% of total corporate emissions.

Unlike Scope 1 (direct) and Scope 2 (purchased energy), Scope 3 emissions occur outside your organization's boundaries but result from your business activities. The GHG Protocol divides Scope 3 into 15 categories.

Why Track Scope 3?

  • BRSR Requirement: Essential Indicator for top 1000 listed companies
  • Customer Pressure: Global buyers require supply chain emissions data
  • Net Zero Targets: Science-based targets (SBTi) require Scope 3 reduction

Scope 3 Categories (GHG Protocol)

Upstream (Categories 1-8)

Purchased goods, capital goods, fuel & energy, transportation, waste, business travel, employee commuting, leased assets

Downstream (Categories 9-15)

Transportation & distribution, processing, use of products, end-of-life treatment, leased assets, franchises, investments

For Most Indian Companies: Categories 1 (purchased goods), 3 (fuel & energy), 4 (upstream transportation), and 7 (employee commuting) are the most material.

How ZeroCarbon Tracks Scope 3 Emissions

From supplier data collection to final BRSR disclosures, we automate the entire Scope 3 workflow.

Supplier Engagement

Send data collection forms to suppliers. Track response rates. Calculate Category 1 (purchased goods) emissions from supplier data or spend-based proxies.

Logistics Tracking

Track upstream and downstream transportation (Categories 4 & 9). Integrate with logistics partners for automated freight emissions calculation.

Employee Commuting

Survey employees on commute modes and distances. Calculate Category 7 emissions. Track work-from-home reductions.

Business Travel

Integrate with corporate travel booking systems. Automatic emissions calculation for flights, trains, and hotel stays (Category 6).

Scope 3 Categories: India-Specific Implementation

How we help Indian companies tackle the most material Scope 3 categories with local context.

1

Category 1: Purchased Goods & Services

Typically the largest Scope 3 category. Emissions from production of purchased materials, components, and services.

Supplier-Specific Method

Collect actual emissions data from suppliers via questionnaires. Most accurate but time-intensive.

Hybrid Method

Use supplier data for top 80% of spend, emission factors for remaining suppliers. Recommended for Indian SMEs.

Spend-Based Method

Use procurement spend × industry emission factors. Fast but less accurate. Good for baseline assessment.

4

Category 4: Upstream Transportation & Distribution

Emissions from transporting purchased goods from suppliers to your facilities. Critical for manufacturing companies.

Road Transport (India)

Use distance × weight × emission factor. India-specific factors for diesel trucks, LCVs, and 3-wheelers.

tCO2e = ton-km × 0.062 kg CO2/ton-km

Rail & Air Freight

Emission factors for Indian Railways (electric & diesel) and domestic air cargo.

Rail: 0.022 kg CO2/ton-km
7

Category 7: Employee Commuting

Emissions from employees traveling to work. Significant for office-based companies with large workforce.

Survey Method

Employee survey on commute mode (2-wheeler, car, metro, bus), distance, and frequency. Most accurate.

Average Method

Use city-specific average commute distance × mode split × working days. Good for large offices.

WFH Adjustment

Reduce emissions based on hybrid work policy. Track work-from-home days for accurate calculation.

Common Scope 3 Challenges in India

We understand the unique challenges Indian companies face in Scope 3 tracking—and how to solve them.

Supplier Non-Responsiveness

Small Indian suppliers often don't track or report emissions data.

ZeroCarbon Solution

Use spend-based method with India-specific emission factors. Gradually transition to supplier-specific data for top 20% of suppliers.

Data Quality Issues

Logistics partners provide inconsistent or incomplete freight data.

ZeroCarbon Solution

Estimate based on shipment weight, origin-destination distance, and India transport emission factors. Improve over time with partner integration.

Lack of India-Specific Factors

Global emission factor databases don't reflect Indian supply chains.

ZeroCarbon Solution

We maintain India-specific emission factor library (BEE, CEA, TERI data) for electricity, transport, and common materials.

Resource Constraints

Small sustainability teams overwhelmed by Scope 3 data collection.

ZeroCarbon Solution

Automated data ingestion from ERP, procurement, and HRMS systems. Start with top 3-4 material categories, expand over time.

BRSR Scope 3 Disclosure Requirements

SEBI's BRSR Principle 6 Essential Indicator requires disclosure of Scope 3 emissions, but does not mandate all 15 categories.

Essential Indicator

"Details of total Scope 3 emissions & its intensity (optional)"—Note: Listed as optional but best practice is to report.

Recommended Approach

Report Categories 1, 3, 4, 6, and 7 at minimum. Add other categories as data becomes available.

Year-on-Year Trend

BRSR format requires current year and 2 previous years. Establish baseline in Year 1, improve accuracy over time.

Start with Material Categories

You don't need to track all 15 Scope 3 categories on day one. ZeroCarbon helps you prioritize based on industry and business model.

Conduct Screening

We help identify which categories are material (>5% of total footprint) for your business.

Phased Implementation

Year 1: Categories 1, 4, 7. Year 2: Add Categories 3, 6. Year 3: Full coverage.

Improve Data Quality

Start with spend-based estimates, gradually transition to activity-based or supplier-specific data.

Start Tracking Your Scope 3 Emissions

Supplier engagement, logistics tracking, and BRSR-ready Scope 3 reports. Get started with material categories and expand over time.

Trusted by Indian companies for supply chain carbon accounting.