Unpacking Scope 3: Category 9 – Downstream transportation & distribution

What happens to your products after they “leave your gate”?

For many companies, emissions don’t stop once a product is manufactured and sold. In fact, a significant portion of the carbon footprint can sit in what happens next e.g. how goods are transported, stored and delivered after the point of sale. This is where Scope 3 Category 9 comes in.

These Scope 3 emissions arise from the movement and storage of sold products in assets that your company does not own or control. Think third-party logistics providers, warehouses, distribution centers, retailers and even last-mile delivery. If your company no longer pays for or controls the transport, but the product is still moving through the value chain, those emissions belong here.

What’s included in Category 9 and the main difference with Category 4

Downstream transportation can take many forms. It may involve road, rail, air or sea freight. It can also include emissions from storage in warehouses or retail facilities, as well as distribution hubs used before the product reaches the end customer(s). In some cases, companies may also include emissions from customers traveling to and from retail stores, especially in retail-heavy business models – this is why a correct materiality assessment at the start of the process is of paramount importance to ensure transparency and accountability.

A key rule to remember is ownership and payment. If your company pays for outbound logistics as a purchased service, those emissions fall under Category 4: “upstream” transportation and distribution, which we covered in a previous article of this Carbon Clarity series (you may find it here). Category 9 only applies once the product has been sold and the transport or storage is no longer under your control

Why Category 9 is often underestimated

Downstream emissions are harder to see. Data usually sits with distributors, retailers or logistics partners, not inside your own systems. As a result, many organizations rely on estimates or averages in early inventories. Yet for product-based companies with global distribution networks, Category 9 can represent a meaningful share of total Scope 3 emissions.

Ignoring it can lead to blind spots, especially when products travel long distances or rely on carbon-intensive transport modes like air freight.

How companies typically calculate it

The GHG Protocol recommends using the same calculation logic as upstream logistics, adapted for downstream data availability. Companies can apply fuel-based, distance-based or spend-based methods, depending on what information they can access.

When exact routes or fuel data are unavailable, companies often estimate distances using logistics records, online mapping tools or published freight averages. Emission factors are then applied based on transport mode, vehicle type or storage activity.

Making Category 9 more actionable

Category 9 is not just a reporting requirement. It offers insight into how distribution choices affect climate impact. Engaging logistics partners, optimising routes, shifting transport modes or improving warehouse efficiency can all lead to measurable reductions. Over time, better data sharing with downstream partners can turn rough estimates into reliable, decision-ready information.

As companies mature their Scope 3 reporting, Category 9 becomes a powerful lens into the hidden emissions beyond the factory gate and a reminder that sustainability does not end at the point of sale.