Scope 3 emissions are indirect greenhouse gas (GHG) emissions that occur across an organization’s value chain, both upstream and downstream. They are not included in Scope 1 (direct emissions from owned/controlled sources) or Scope 2 (emissions from purchased electricity/heat). For most manufacturing and infrastructure businesses, Scope 3 is often the largest share of the total footprint.
Scope 3 reporting is defined by the GHG Protocol and is commonly required in supplier assessments, tenders, and Science Based Targets (SBTi) target-setting.
Why Scope 3 Emissions Matter
Scope 3 matters because it captures the emissions a company influences through purchasing, design, logistics, and how products are used and disposed of.
– Often represents the majority of total emissions (materials, components, logistics)
– Increasingly required by customers for ESG due diligence and supply-chain reporting
– Central to credible decarbonization plans (you can’t reach “net zero” without it)
– Highlights the impact of product design decisions (weight, materials, durability, repairability)
– Supports better procurement strategy and supplier engagement
For EV charging hardware, the biggest Scope 3 drivers are typically metals, electronics, cables/connectors, and transport—plus end-of-life treatment and, in some cases, downstream energy-related effects depending on reporting boundaries.
What Counts as Scope 3
Scope 3 is broken into standard categories (GHG Protocol), commonly grouped as upstream and downstream.
Upstream Scope 3 examples:
– Purchased goods and services (components, housings, PCBA, cables, packaging)
– Capital goods (production equipment, test benches, machinery)
– Fuel- and energy-related activities not in Scope 1/2
– Upstream transportation and distribution (inbound freight)
– Waste generated in operations
– Business travel and employee commuting
– Upstream leased assets (depending on boundary approach)
Downstream Scope 3 examples:
– Downstream transportation and distribution (outbound freight, warehousing)
– Processing of sold products (if applicable)
– Use of sold products (relevant for some product types and boundary choices)
– End-of-life treatment of sold products (recycling, disposal)
– Downstream leased assets, franchises, investments (where applicable)
How Scope 3 Emissions Are Calculated
Scope 3 accounting combines activity data, supplier data, and emission factors.
– Define Scope 3 categories in scope and set organizational boundaries
– Collect procurement and activity data (BOM, spend, quantities, weights, transport lanes)
– Use supplier-specific emissions data where available (preferred)
– Fill gaps with secondary databases/emission factors (industry averages)
– Apply consistent methods (mass-based, activity-based, spend-based) and document assumptions
– Prioritize “hotspots” that drive the largest impact and uncertainty
For EV charger manufacturers, using BOM-based methods (mass and material specific) usually provides better accuracy than purely spend-based estimates.
Common Scope 3 Hotspots for EV Charging Hardware
– Aluminum and steel parts (enclosures, structural elements, mounting hardware)
– Electronics (PCBs, semiconductors, power supplies, meters, comms modules)
– Cables and connectors (copper, plastics, molding)
– Packaging materials and pallets
– Inbound and outbound logistics (road freight, warehousing)
– Installation-related materials and contractor travel (depending on boundary)
– End-of-life recycling and waste streams
Reduction Strategies for Scope 3
Scope 3 reductions usually come from design and supplier collaboration.
– Supplier engagement: require lower-carbon materials, renewable electricity, verified footprints
– Product design: lighter structures, fewer parts, optimized housings, modular repairability
– Material choices: recycled content, low-carbon aluminum/steel, optimized plastics
– Logistics optimization: consolidated shipments, better packaging density, route optimization
– Extend product lifetime through serviceability, firmware support, spare parts strategy
– Improve end-of-life outcomes: take-back programs, recyclability, material labeling
Limitations to Consider
– Data quality depends on supplier transparency and consistent methodologies
– Double counting across companies is normal at the system level (Scope 3 of one is Scope 1/2 of another)
– Category selection and boundary decisions can materially change results
– Estimation methods can introduce uncertainty; documentation is essential
– Reductions may require multi-year procurement and engineering changes
Related Glossary Terms
Scope 1 emissions
Scope 2 emissions
Scope 1/2/3 emissions
GHG Protocol
Science Based Targets (SBTi)
Corporate carbon footprint
Product carbon footprint (PCF)
Life cycle assessment (LCA)
Supply chain emissions
End-of-life recycling