This guide will walk you through completing the Scope 3 Emissions Value Chain Template, explaining how to identify emissions sources, map them across phases of the value chain, and take strategic action. The template divides the value chain into three key sections – Upstream, Operations, and Downstream – and focuses on areas that contribute to indirect (Scope 3) emissions. By following these steps, you’ll have a clearer picture of your company’s environmental impact and actionable strategies to reduce it.

Before You Begin

Be sure to download the Scope 3 Emissions Value Chain Mapping Excel template.

1. What Are Scope 3 Emissions and Why Use a Value Chain Template?

The Scope 3 Emissions Value Chain Template is designed to help businesses visualize and manage emissions that occur beyond their direct operations. Scope 3 emissions are indirect emissions, such as those generated by suppliers, transportation, or product use. These emissions often account for the majority of a company’s carbon footprint and can be challenging to monitor without a structured framework like this template.

Managing Scope 3 emissions is essential because:

• They represent emissions your company is indirectly responsible for.
• Transparency with Scope 3 data strengthens ESG reports and improves stakeholder trust.
• It enables companies to identify high-emission areas for targeted reductions.

2. Understanding the Value Chain Phases in the Template

The template breaks down the product lifecycle into three phases. Each phase is a potential source of emissions and must be populated with relevant data for complete reporting. Let’s explore these sections in detail.

Data Fields to Include in Each Phase

To accurately track Scope 3 emissions, complete the following fields for each phase (Upstream, Operations, Downstream):

1. Stakeholder: Identify the responsible supplier, partner, or organization contributing to the emissions.
2. Time Unit: Enter the month unit for which you are capturing the emissions. (e.g., 2024, 2024-10). It’s recommended that you keep the same time granularity across your value chain.
3. Emission Type: Specify the type of emissions (e.g., CO2, CH4, N2O).
4. Emission Quantity: Indicate the total emissions during the reporting period.
5. Unit of Measure: Define the units (e.g., kg, tons) used to report the emissions.
6. Emission Source: Provide a description of where or how the emissions were generated (e.g., logistics, manufacturing, waste). Can also be thought of as “Activity”.
7. Notes: Add any additional comments or relevant information about the emissions data.

This structure ensures consistency across phases and provides clarity for stakeholders reviewing the emissions data.

A. Upstream (Suppliers & Raw Materials)

This phase includes all activities before production begins, such as raw material extraction, transportation, and supplier operations.

How to complete this section:

1. List suppliers and identify their emissions sources, such as energy use or material extraction. You can contact suppliers for their emissions data to help you with this step.
2. Capture emissions related to procurement and transport to your site.
3. Use emissions factors from reliable sources (like GHG Protocol) if supplier data isn’t available.

Example: For a fashion company, the upstream phase might include cotton farming emissions and energy used in textile mills.

B. Operations (Production & Manufacturing)

Operations involve emissions generated within your company’s control but may include outsourced activities.

How to complete this section:

1. Identify production processes and their carbon emissions, such as energy used in manufacturing or water consumption. You would typically collect emissions data from utility providers like water and electricity that is used to enable your production process.
2. If you outsource some operations, collect emissions data from contractors.
3. Track waste emissions from production facilities.

Example: A technology company would track emissions from assembling electronic devices and energy used in production lines.

C. Downstream (Distribution, Use & Disposal)

This phase refers to what happens after your product leaves your control, including distribution, product use, and disposal.

How to complete this section:

1. Estimate emissions from transporting products to retailers or customers.
2. Capture product use emissions—for example, electricity consumption for electronic devices.
3. Include emissions from end-of-life disposal or recycling operations.

Example: A car manufacturer would map emissions from vehicle use and disposal of old cars at the end of their lifecycle.

3. Collecting Data for Scope 3 Emissions Reporting

Accurate data is key to filling out the Scope 3 Emissions Value Chain Template effectively. Here’s how you can gather it:

• Engage suppliers: Request carbon footprint reports from your key vendors.
• Use emission factors: If primary data is unavailable, use standardized emission factors to estimate emissions.
• Survey logistics partners: Track transportation-related emissions through fuel use reports or emissions estimates.

💡 Pro Tip: Keep your data organized with spreadsheets, databases, or dedicated platforms to make the reporting process seamless.

4. Analyzing the Value Chain Map and Taking Action

Once you’ve filled in the template, use these steps to analyze the data and take action.

A. Identify Hotspots

Review each phase of the template to spot areas with high emission intensity. For example, raw materials like steel may have a higher carbon footprint compared to packaging.

B. Set Reduction Targets

Use the insights from the value chain to set emission reduction goals, focusing on the largest sources of emissions first.

C. Engage Partners and Suppliers

Work with suppliers to reduce emissions upstream and collaborate with distributors to optimize logistics.

5. Tracking Progress and Reporting Results

Completing the Scope 3 Emissions Value Chain Template is just the beginning. Use the data to:

• Track progress toward your emission reduction targets.
• Update the template regularly to reflect improvements or changes.
• Incorporate the results into ESG reports (e.g., CDP or GRI frameworks).

The template will help you build a comprehensive emissions profile that aligns with regulatory requirements and boosts stakeholder confidence.

Conclusion: Why Use the Scope 3 Emissions Value Chain Template?

The Scope 3 Emissions Value Chain Template simplifies the process of mapping indirect emissions, making it easier to track, manage, and reduce emissions across your value chain. By engaging suppliers, identifying emission hotspots, and setting reduction targets, companies can align their activities with sustainability goals and improve ESG performance.

Next Steps

1. Download the Scope 3 Emissions Value Chain Template and fill in each phase with relevant data.
2. Understand what mapping Scope 3 emissions entail by reading our Mapping Scope 3 Emissions: A Beginners Guide article.
3. Collect supplier data and engage partners for accurate reporting.
4. Analyze the results and implement targeted reduction strategies.

This template will help you track emissions, improve transparency, and build sustainability into your value chain from start to finish.