Unpacking Scope 3: Category 1 – Purchases and their carbon impact
GHG Scope 3 Upstream activites | Category 1 – Purchased goods and services
When companies think about their carbon footprint, the first image that comes to mind is usually smoke from factory chimneys or fuel-burning vehicles. But for most businesses, the largest share of emissions doesn’t come from their own operations at all: it comes from the goods and services they purchase.
Category 1 of Scope 3 emissions covers exactly this: the greenhouse gases (GHG) released during the production of all the materials, products and services a company buys to run its operations. From office supplies and IT equipment to raw materials, packaging and outsourced services, every purchase has an embedded carbon cost.
Why it matters
For many companies, Category 1 emissions represent the single largest slice of their Scope 3 footprint. This is because everything you buy – whether it’s steel for construction, paper for offices or catering services for employees – has a supply chain behind it. That supply chain involves energy, transport, manufacturing processes and resource extraction, all of which generate GHG emissions.
By understanding and addressing these emissions, businesses can:
- Strengthen supplier partnerships around sustainability
- Reduce risks linked to resource use and regulations
- Meet customer and investor expectations for transparency
How to tackle Category 1
- Map your spend: Start by looking at where your money goes. High-spend categories often align with high emissions.
- Engage suppliers: Ask suppliers about their own GHG footprints and encourage them to share data or adopt sustainable practices.
- Use better data: Shift from spend-based estimates to supplier-specific or product-level data where possible.
- Collaborate for innovation: Work with suppliers to co-create lower-carbon alternatives, such as recycled materials or energy-efficient processes.
The Bigger Picture
Addressing purchased goods and services is about more than reporting. It’s about reimagining your value chain. Companies that actively engage in this space not only reduce GHG emissions but also unlock innovation, strengthen resilience and show real climate leadership.
Simply put: every purchase your company makes is also a climate decision.
