Unpacking Scope 3: Category 10 – Processing of sold products

GHG Scope 3 Downstream activites | Category 10 – Processing of sold products

Understanding emissions created when your product is transformed by others

When companies think about their carbon footprint, they often stop at the point of sale. But for many industries the story does not end there. Some products are not used immediately by the end consumer. Instead, they are further processed, refined, assembled or manufactured into something new. The emissions from that next stage fall under Scope 3 Category 10: Processing of sold products.

Category 10 captures the greenhouse gas emissions generated when intermediate products sold by your company are processed by third parties before reaching the final customer. This category is particularly relevant for companies that sell raw materials, components, chemicals, metals, textiles or semi-finished goods.

What does this mean in practice?

If your company manufactures steel that is later used by an automotive company, the emissions generated when that steel is cut, shaped or assembled into vehicles may fall under Category 10.

If you produce flour that is sold to a food manufacturer, the emissions from baking, packaging or industrial cooking processes would be considered downstream processing emissions.

In short, Category 10 applies when your product requires additional industrial or commercial transformation after it leaves your control.

Why Category 10 matters

For many upstream manufacturers and material suppliers, emissions from downstream processing can be significant. Energy-intensive processes such as smelting, refining, chemical treatment or manufacturing often carry high carbon footprints. Ignoring these emissions can mean underestimating the full climate impact of your products.

Category 10 also highlights an important shift in carbon accountability. Businesses are increasingly expected to understand not just how they operate, but how their products influence emissions across the value chain. This is particularly important within the wider circular economy agenda.

How companies estimate these emissions

Calculating Category 10 emissions can be complex because the processing activities take place outside your organization. Companies typically rely on:

• Industry-average emission factors for common processing activities
• Lifecycle assessment data for specific materials or components
• Customer data where available
• Economic or spend-based estimation methods when physical data is limited

The level of detail depends on data access and the materiality of the category. For some businesses, high-level estimates are used initially, with refinement over time as engagement with customers improves.

The strategic perspective

Category 10 is not just a reporting line item. It provides insight into how product design influences emissions beyond your factory gate. Lighter materials, lower-carbon inputs or products designed for energy-efficient processing can significantly reduce downstream emissions.

By better understanding how customers process your products along the whole supply chain, you can identify opportunities for collaboration, innovation and shared decarbonisation strategies.

As Scope 3 reporting continues to evolve, Category 10 reminds us that climate responsibility extends into the next step of the value chain. The carbon impact of a product does not end when it is sold. In many cases, that is only the beginning.