Reliable Scope 3 analyses based on spend data – efficient and in line with the GHG Protocol.

Scope 3 Assessment

Research Sustainability Scope 3 Assessment

What are Scope 3 emissions?

The GHG Protocol provides internationally recognized standards for measuring, reporting, and assessing greenhouse gas emissions (GHGs). It divides GHGs into three categories, known as scopes. Scope 3 is usually the most comprehensive category, covering all indirect emissions along a company’s value chain except those from energy use. Since Scope 3 emissions arise outside a company’s direct operations, measuring them is often complex and requires comprehensive analysis.

Overview of the different scopes as defined by the GHG Protocol:

Scope 1 – direct emissions from company-owned sources, e.g. company vehicles or facilities
Scope 2 – indirect emissions from purchased energy, such as electricity or district heating
Scope 3 – all remaining indirect emissions along the upstream and downstream value chain

Why Scope 3 Assessment matters

The EU Corporate Sustainability Reporting Directive (CSRD) requires large companies to disclose their Scope 3 emissions. Since the Omnibus I Directive entered into force on March 18, 2026, this requirement applies to companies with 1,000 or more employees and more than €450 million in annual revenue.

Companies subject to these reporting obligations frequently request corresponding data from suppliers across their value chain.

A robust Scope 3 Assessment helps identify where targeted action can achieve the greatest impact.

Spend-based Scope 3 Assessment by WifOR Institute

Complete primary data along the value chain is rarely available in practice. To create transparency on indirect greenhouse gas emissions despite this data gap, the GHG Protocol recommends a spend-based method for Scope 3 Assessment, among other options.

This method links procurement data with emission factors to calculate Scope 3 emissions along the supply chain using statistical models. Company- or supplier-specific data can then be added to progressively refine the results.

Identifying relevant Scope 3 categories

Calculating emissions using an environmentally extended input-output model

Refining the results with company- or supplier-specific data

Strategic value

Spend-based Scope 3 Assessment creates a scientifically sound and regulatory-robust data foundation for GHG reporting, with minimal effort for companies. This allows companies to efficiently capture, analyze, and specifically reduce Scope 3 emissions.

Fast implementation

Calculation based on existing procurement data

GHG Protocol-compliant methodology

A solid basis for CSRD, CBAM, and LkSG

Identification of emission hotspots and reduction potentials

Flexible analyses across the supply chain

WifOR’s Scope 3 Assessment adapts flexibly to different business questions. Depending on data availability, analyses can be run at the country, industry, business unit, product group, supply chain tier, or supplier level.

This creates the transparency companies need for sustainability reporting, risk assessment, and building effective decarbonization strategies.

Flexible analysis across the supply chain

Practical insights

Together with experts from Takeda and Evonik, WifOR Institute hosted a Masterclass on how companies can identify emission hotspots, prioritize suppliers, and successfully implement decarbonization measures. The discussion centered on collaboration among stakeholders across the value chain as the single greatest lever for successful Scope 3 management.

Watch the Scope 3 Masterclass recording

“To make Scope 3 actionable, companies need to identify hotspots, prioritize the right suppliers, and translate insights into concrete actions – rather than waiting for perfect data.”

Jessica Vieira, Head of Environmental Sustainability Operations and Business Excellence  at Takeda

“Primary data remains one of the biggest challenges in Scope 3, especially upstream. That’s why it’s essential to focus on hotspots, understand what is under your sphere of influence, and take action where it matters most.”

Ranjan Fletcher, Manager Sustainability Development Health Care  at Evonik

Upstream Scope 3 emissions can also be calculated using WISIT – the WifOR Institute Sustainability Impact Tool. Learn more about WISIT here.