SUSTAINABILITY SPOTLIGHT | 39 How is Scope 3 calculated and reported? • Product carbon footprint (PCF) and lifecycle Carbon accounting standards underpin the assessment (LCA): PCF is the total GHG emissions measurement and reporting of carbon emissions as well generated by a product from the extraction of its as the tracking of organisational performance against necessary raw materials to its end of life. LCA studies abatement strategies and targets. Carbon accounting the environmental aspects and potential impacts standards can be classi昀椀ed into two main categories: throughout a product’s life cycle, from raw materials acquisition through to production, use and disposal. • Corporate carbon footprint (CCF): CCF is the total sum of GHG emissions directly or indirectly The variety of standards available makes it challenging generated by a company’s activities during a speci昀椀c for organisations to select the right one and ensure period of time. comparability of results across 昀椀rms and sectoral, regional, and national aggregation. and PCF. FIGURE 3 COe emissions split by Scope 3 categories for selected industries 2 Purchased goods and services Capital goods Fuel and energy-related activities (not included in Scope 1 or 2) Upstream transportation and distribution Waste generated in operations Business travel Employee commuting Upstream leased assets Downstream transportation and distribution Processing of sold products Use of sold products End-of-life treatment of sold products Downstream leased assets Franchises Investments 0% 10% 20% 30% 40% 50% 60% 70% Source: Extracted from CDP and Capgemini Invent, From Stroll to Sprint: A Race Against for Corporate Decarbonization, July 2023; CDP, CDP Technical Note: Relevance of Scope 3 Categories by Sector, 2022 Figure 3. Extracted from World Economic Forum, The “No-Excuse” Opportunities to Tackle Scope 3 Emissions in Manufacturing and Value Chains, December 2023. The “No-Excuse” Opportunities to Tackle Scope 3 Emissions in Manufacturing and Value Chains 10