Which Scope 3 categories are mandatory to report, and can I leave some out?
No single category is mandatory for everyone. The GHG Protocol Scope 3 Standard requires you to account for all relevant categories and to disclose and justify any you exclude. What becomes mandatory depends on who asks: SBTi target coverage, IFRS S2, CSRD or a buyer's questionnaire each set their own rule.
What the GHG Protocol requires
- Scope 3 is optional under the Corporate Standard. It becomes required only if you claim to follow the Scope 3 Standard.
- If you do, you must account for Scope 3 emissions across the 15 categories, report each relevant category separately, and disclose and justify any exclusion.
- Relevance is judged by size, influence, risk, stakeholder interest, outsourcing and sector guidance (Table 6.1). A category can be left out only if it does not apply or is not relevant on these tests.
What other frameworks add
- SBTi near-term criteria: if Scope 3 is 40% or more of total Scope 1, 2 and 3 emissions, the Scope 3 target must cover at least 67% of Scope 3 emissions.
- IFRS S2: disclose Scope 3 emissions and which of the 15 categories are included, using the GHG Protocol; a first-year relief lets entities defer Scope 3.
- CSRD (ESRS E1): disclose significant Scope 3 categories, with the scope now limited by the 2026 simplification of who must report.
- BRSR: Scope 3 sits among the leadership indicators, which are voluntary for listed companies.
- Buyers: an EU customer may ask only for your Scope 1 and 2 and the product footprint of what you sell them.
How to justify an exclusion
- Screen every category with a rough estimate, even spend-based.
- Mark categories that do not apply, for example franchises for a factory with none.
- For small categories, record the estimate and the reason, such as below 1% of the total in your screening.
- Write the exclusion and reason in the report so a reader or verifier can test it.
- Rescreen when the business changes, for example a new product line or outsourced logistics.
Categories that usually matter for Indian manufacturers
Category 1 purchased goods, Category 3 fuel and energy related activities, Category 4 upstream transport, Category 5 waste and, for exporters on delivered terms, outbound freight. For makers of motors, pumps or vehicles, Category 11 use of sold products can be the largest of all.
Worked example: does the SBTi 67% rule apply?
- Scope 1: 800 t CO2e; Scope 2: 1,200 t CO2e; Scope 3 screening: 6,000 t CO2e
- Total: 800 + 1,200 + 6,000 = 8,000 t CO2e
- Scope 3 share: 6,000 / 8,000 = 75%, above the 40% trigger
- Target must cover at least 67% of 6,000 = 4,020 t CO2e of Scope 3
What Senseible does here
Senseible separates Scope 3 lines from your invoices into a supplier evidence trail, so you can see which categories have documented data. It does not screen categories you hold no documents for or decide which exclusions a framework will accept.
Sources: GHG Protocol Corporate Value Chain (Scope 3) Standard (2011), Chapters 6 and 11, SBTi Corporate Near-Term Criteria, IFRS S2 Climate-related Disclosures (ISSB, 2023)
Last reviewed 2026-10-15. SBTi is revising its corporate standard and the GHG Protocol is under revision; check the coverage thresholds before setting a target.