What is Upstream Emissions?
Scope 3 emissions that occur in the supply chain before a product or service reaches an organisation. This includes emissions from purchased goods and services, capital goods, fuel and energy activities, transportation, waste, business travel, and employee commuting.
Why it matters
Upstream emissions typically form the largest portion of Scope 3 for most SMEs, especially those purchasing physical goods. Understanding upstream hotspots helps businesses prioritise supplier engagement and sourcing changes that deliver real reductions.
Example
A cosmetics brand discovers that purchased ingredients and packaging materials account for 60% of its total upstream emissions, prompting a switch to recycled glass bottles and locally sourced plant extracts.
Related terms
Scope 3 Emissions
All other indirect emissions occurring in an organisation's value chain, both upstream and downstream. Scope 3 typically represents 70-90% of a company's total carbon footprint and includes emissions from suppliers, business travel, employee commuting, and product use.
Downstream Emissions
Scope 3 emissions that occur after a product or service leaves an organisation. This includes transportation and distribution, processing of sold products, use of sold products, end-of-life treatment, leased assets, franchises, and investments.
Supply Chain Emissions
Greenhouse gas emissions generated by suppliers in the production and delivery of goods and services. Supply chain emissions typically fall under Scope 3 and often represent the largest portion of a company's carbon footprint.
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