For food businesses, understanding how to calculate and measure Scope 3 emissions is crucial as they often account for the largest share of a company’s total carbon footprint.
With complex supply chains and a wide network of partners, the industry faces unique challenges in getting Scope 3 data right. But with those challenges come opportunities: better insights, stronger supplier relationships, and real climate impact.
In this post, we’ll walk you through practical methods so you can tackle Scope 3 emissions head-on.
What are Scope 3 emissions?
Scope 3 emissions are the indirect greenhouse gas (GHG) emissions that occur outside a company’s own operations—but still within its supply chain. For food companies, this means emissions from activities like:
- farming,
- packaging production,
- third-party logistics,
- retail distribution,
and even how consumers store or dispose of products.
Unlike Scope 1 and 2 emissions, which are easier to measure because they stem from direct operations or purchased energy, Scope 3 emissions are sprawling, data-intensive, and often difficult to trace and calculate. Yet, they typically make up the largest share of a food company’s total carbon footprint.
Tip: For more insights, check out our related blog posts Scope 3 emissions in the food industry, Scope 1, 2, 3 emissions, Product carbon footprint, Corporate carbon footprint.
How are Scope 3 emissions categorized?
The GHG Protocol, the leading global standard for emissions accounting, defines 15 distinct categories of Scope 3 emissions. These help companies pinpoint where their emissions are coming from and prioritize reduction efforts accordingly.
In the food sector, several of these categories are particularly relevant.
1. Upstream Categories
These are emissions that occur before your product reaches you, mostly outside your direct control but still within your responsibility.
- Purchased goods and services. For food companies, this includes raw ingredients like meat, dairy, grains, and packaging materials. This category is often the largest contributor to Scope 3 emissions.
- Capital goods. Emissions from the production of equipment and infrastructure used in your operations, such as food processing machinery or refrigeration systems.
- Fuel- and energy-related activities. Emissions from the extraction, production, and transport of fuels used in your purchased energy.
- Upstream transportation and distribution. Emissions from moving raw materials, ingredients, and packaging from suppliers to your production facilities.
- Waste generated in operations. Includes food scraps, packaging waste, and other byproducts that are landfilled, composted, or incinerated.
- Business travel. Emissions from employee travel, such as flights or train trips to meet suppliers or attend trade events.
- Employee commuting. Daily travel of employees to and from work, especially relevant in centralized production or warehouse hubs.
- Upstream leased assets. Emissions from facilities or equipment you lease but don’t own, like storage spaces or vehicles.
2. Downstream Categories
These emissions occur after your product leaves your hands, such as during transport, retail, or customer use.
- Downstream transportation and distribution. This includes cold chain logistics and last-mile delivery to retailers or foodservice outlets.
- Processing of sold products. If your ingredients are further processed by another company (e.g., selling flour to a bakery), this category applies.
- Use of sold products. Relevant for food products that require refrigeration, cooking, or heating by consumers. Each action adds to the carbon footprint.
- End-of-life treatment of sold products. Emissions from disposal of food waste and packaging, including landfill, composting, or recycling processes.
- Downstream leased assets. Similar to upstream leased assets, but for things like fridges or vending machines provided to retailers.
- Franchises. If you operate a franchise model, emissions from franchisee activities are included here.
- Investments. Applies to companies that finance or invest in other businesses and need to account for their share of emissions.
Why are Scope 3 emissions difficult to calculate?
Calculating, measuring, and tracking Scope 3 emissions accurately isn’t impossible, but it does come with its fair share of hurdles.
One of the biggest challenges is data availability and quality. Many suppliers, particularly those in agriculture, simply don’t have detailed Scope 3 emissions data or the right tracking systems. As a result, companies often fall back on industry averages, which can distort the true footprint of their own supply chain.
Adding to the complexity is the fragmented nature of food supply chains. With multi-tiered networks stretching across regions and continents, tracing ingredients back to their origin and understanding the emissions at each stage is a daunting logistical task.
Standardization is another issue. There’s no one-size-fits-all method for calculating Scope 3 emissions across different food categories. The variety in data formats, methods, and assumptions can lead to inconsistent reporting and confusion.
Lastly, the entire process is resource-intensive. Collecting, verifying, and maintaining data across a diverse supply chain requires significant time and expertise. For many companies, especially small and medium-sized ones, this creates a gap that internal teams may struggle to fill without external support or scalable digital tools.
However, understanding these challenges is a necessary step. With the right approach and tools, it’s possible to cut through the complexities and get actionable insights.
Why is Scope 3 calculation important?
In the food sector, calculating Scope 3 emissions is more than a reporting requirement, it’s a strategic opportunity for your company. Here’s how it pays off:
- You identify hotspots in your supply chain: Most emissions in the food sector occur before products even reach your facility. By mapping Scope 3 emissions, you can pinpoint where reductions will make the biggest impact, often in areas like agriculture, packaging, and logistics.
- You meet regulatory and market expectations: From regulations such as CSRD, ESG to upcoming global standards, legislation is increasingly requiring companies to disclose full supply chain emissions. Food retailers and producers are under growing pressure to show climate accountability, not just in operations, but across their entire product portfolio.
- You strengthen your relationship with suppliers: To reduce Scope 3 emissions means to actively engage with your suppliers. Done right, this opens the door to joint sustainability initiatives, improved transparency, and more accurate Scope 3 data sets to help measure and calculate emissions. For more insights, check out our post Managing Scope 3 through supplier engagement.
- You build trust with climate-conscious consumers and investors: Transparency around Scope 3 emissions shows you understand the full impact of your business. It enables credible climate claims, supports eco-labeling efforts, and enhances your reputation in a market where sustainability drives purchasing and investment decisions.
How do I calculate Scope 3 emissions?
Understanding your full climate impact starts by applying effective Scope 3 emissions calculation methods. Here’s how you can get valuable insights.
1. Collect data
Start by collecting data on all relevant upstream and downstream activities—particularly procurement. For food companies, this means gathering records on purchased ingredients, packaging materials, transportation, and even outsourced manufacturing. Transaction volumes, weights, and spend data are critical inputs here.
2. Calculate carbon emissions
Once you’ve gathered your data, the next step is to calculate the Scope 3 emissions using emission factors.
These are standardized values that show how much greenhouse gas is emitted per unit of activity. For example, how many kilograms of CO₂e are released for each kilogram of cheese produced or per kilometer of refrigerated transport.
Refer to reliable sources like national databases, life cycle assessment (LCA) studies, or industry-specific tools such as CarbonCloud to get the most relevant data for your food products.
Find out how CarbonCloud calculates the carbon footprint of your products!
3. Follow relevant frameworks
Use the aforementioned GHG Protocol Scope 3 Calculation Guidance as your foundational framework.
Breaking Scope 3 into categories helps you understand where emissions are concentrated and where to focus your reduction strategy. For example, if the bulk of your emissions comes from purchased goods, working directly with suppliers on lower-impact sourcing will yield more results than investing in low-emission delivery fleets.
It’s not about tackling everything at once—it’s about identifying the biggest opportunities, and building a focused, realistic plan to reduce emissions at scale.
4. Disclose transparently
Once you’ve got the numbers, it’s essential to explain how you got there. Transparency is especially important in the food industry, where supply chains often involve multiple tiers, seasonal variation, and regional differences in production practices.
Clearly document:
- the data sources (e.g., supplier data, industry averages, tools)
- any assumptions (e.g., average transport distances, storage methods)
- emission factors applied and their sources
- exclusions or known data gaps (and why they occurred)
Being upfront about limitations doesn’t undermine your efforts—it shows accountability and invites collaboration to improve data quality over time.
Moreover, investors, partners, and conscious consumers are more likely to trust companies that acknowledge complexity rather than oversimplify it.
5. Monitor and improve over time
Calculating Scope 3 emissions isn’t a one-off task. It’s an ongoing process that evolves with your business. In the dynamic world of food production and retail, where suppliers, sourcing regions, and product lines often shift, keeping your data current is key.
Aim to review and update your calculations at least once a year. Also, track changes in your operations, such as new sourcing strategies or changes in logistics, to understand how they impact your overall footprint.
Each update is a chance to refine your emissions profile, identify new hotspots, and optimize your climate strategy.
CarbonCloud transforms the way how Scope 3 emissions are calculated. Rather than relying on static, manually collected data, the platform enables you to automate the process of requesting climate footprints from suppliers, reflecting your current production processes.
But you’re not just collecting numbers. You’re building a digital network for your entire supply chain, complete with real-time emissions updates, full visibility into supplier performance, and insights at every stage.
Calculate Scope 3 emissions smarter and faster. Get in touch to learn more.
