SCOPE 3

GREENHOUSE
GAS EMISSIONS
CALCULATION:
GUIDANCE FOR THE
PHARMACEUTICAL
INDUSTRY
OC TOBER 2020
THE PHARMACEUTICAL SUPPLY CHAIN INITIATIVE
Established in 2006, the Pharmaceutical Supply Chain
Initiative (PSCI) is an industry-based membership body
that collaborates with partners to define, implement, and
champion responsible supply chain practices, fair and safe
workplaces, responsible business practices, environmental
sustainability and efficiency of resources, and improved
supplier capability. Membership is open to companies that
manufacture medical products or provide materials to the
pharmaceutical, biotechnology, or medical devices industries
and that agree to the PSCI Principles on Responsible Supply
Chain Management on ethics, human rights and labor, health
and safety, environment, and management systems.
All members agree to incorporate the Principles into
key supplier agreements, which are supported through
implementation guidance and online audit collaboration
and supplier capability building platforms. Overall, the PSCI
is the leading organization for responsible supply chain
management in the pharmaceutical industry.
You can find out more and join the community via The Link.
 3

CONTENTS
INTRODUCTION 4

GUIDANCE PRINCIPLES 6

APPROACH 6

CATEGORY GUIDANCE 11

PURCHASE OF GOODS AND SERVICES CATEGORY 1 11

CAPITAL GOODS CATEGORY 2 15

FUEL AND ENERGY-RELATED ACTIVITIES CATEGORY 3 16

UPSTREAM TRANSPORTATION AND DISTRIBUTION CATEGORY 4 17

WASTE GENERATED IN OPERATIONS CATEGORY 5 18

BUSINESS TRAVEL CATEGORY 6 19

EMPLOYEE COMMUTING CATEGORY 7 20

UPSTREAM LEASED ASSETS CATEGORY 8 21

DOWNSTREAM TRANSPORT AND DISTRIBUTION CATEGORY 9 22

PROCESSING OF SOLD PRODUCTS CATEGORY 10 24

USE OF SOLD PRODUCTS CATEGORY 11 24

END OF LIFE TREATMENT OF SOLD PRODUCTS CATEGORY 12 27

DOWNSTREAM LEASED ASSETS CATEGORY 13 28

FRANCHISES CATEGORY 14 28

INVESTMENTS CATEGORY 15 28

LIMITATIONS AND AREAS FOR DEVELOPMENT 29

APPENDIX A: SCOPE 3 CATEGORIES AND BOUNDARIES 30

APPENDIX B: PROVIDERS OF EMISSIONS FACTORS 32

APPENDIX C: UK GOVERNMENT SUPPLY CHAIN EMISSIONS FACTORS 33

4 GREENHOUSE GAS EMISSIONS CALCULATION GUIDANCE

INTRODUCTION
There is increasing pressure on business to measure,
manage and reduce their contribution to climate
change. Many companies have completed the process of
measuring and reporting emissions of greenhouse gases
(GHG) from their own operations – so-called scope 1 and
2 emissions - and as a result have put in place robust
programmes to reduce them.
The GHG Protocol Corporate Standards classifies a
company’s GHG emissions into three different scopes.
Scope 1 are direct emissions from owned or controlled
sources whilst scope 2 are indirect emissions from the CO₂ CH₄
generation of purchased energy.
Scope 3 emissions include all other indirect emissions
that occur in a company’s value chain, upstream or
downstream from own operations, divided into 15
different business activity categories.
SCOPE
INDIREC T EMI

For many sectors, including the pharmaceutical industry,

upstream and downstream emissions will be significantly
higher than emissions from their own operations.
However, measuring and reporting GHG emissions from
activities within the value chain, such as those associated

SCO
with the manufacture of goods and services used by
a company, is much more challenging, particularly for
pharmaceutical companies with large and complex value
chains.
UPSTREA
C AT EG O RY 1
The primary focus of this document is to provide a PURCHASED GOODS
AND SERVICES
consistent guidance for pharmaceutical companies C AT EG O RY
to calculate GHG emissions in their upstream and UPSTREAM
LEASED ASSE
downstream value chains. It provides methodologies
consistent with recommendations from the GHG Purchased
electricity,
Protocol for calculating emissions which are tailored for steam,
each different category. The methodologies have been C AT EG O RY 2
heating &
C A P I TA L
structured so that both companies just getting started, GOODS cooling for
own use
as well as those more advanced in their calculation and
measurement capabilities, will find them useful and
accessible. C AT EG O RY 3
F U E L A N D E N E R GY -
This document was developed by the Pharmaceutical R E L AT E D A C T I V I T I E S
Environment Group (PEG) and its participating
companies, who have kindly shared it with the PSCI for
C AT EG O RY 4
diffusion amongst its members. The Pharmaceutical UPSTREAM
Environment Group consists of leading pharmaceutical T R A N S P O R TAT I O N C AT
AND DISTRIBUTION
companies who collaborate in order to demonstrate and BU
C AT EG O RY 5 T
promote environmental leadership in the pharmaceutical WA S T E G E N E R AT E D
industry, working together to enhance their performance. I N O P E R AT I O N S

UPSTREAM AC TIVITIES
 INTRODUCTION 5

Graphic based on original source: Greenhouse Gas Protocol, Corporate Value

Chain (Scope 3) Accounting and Reporting Standard, World Resources Institute
and World Business Council for Sustainable Development, 2011, page 31

N₂O HFCs PFCs SF₄

E2 SCOPE 1
ISSIONS DIREC T EMISSIONS

OPE 3
AM EMISSIONS
C AT EG O RY 9
SCOPE 3
DOWNSTREAM DOWNSTREAM EMISSIONS
T R A N S P O R TAT I O N
AND DISTRIBUTION
Y8
M
ETS
C AT EG O RY 15
INVESTMENTS
C AT EG O RY 10
PROCESSING
OF SOLD
PRODUCTS
C O M PA N Y C AT EG O RY 13
FA C I L I T I E S
DOWNSTREAM
LEASED ASSETS C AT EG O RY 14
FRANCHISES
C AT EG O RY 7
E M P LOY E E C AT EG O RY 11
COMMUTING
USE OF SOLD
C O M PA N Y PRODUCTS
VEHICLES
T EG O RY 6
USINESS
T R AV E L C AT EG O RY 11
E N D O F L I F E T R E AT M E N T
OF SOLD PRODUCTS

REPORTING COMPANY DOWNSTREAM AC TIVITIES

6 GREENHOUSE GAS EMISSIONS CALCULATION GUIDANCE

GUIDANCE
PRINCIPLES
Calculating emissions for a pharmaceutical company’s value chain can be a daunting prospect: obtaining representative
emissions data from upstream and downstream partners; finding emissions factors from industry databases that
reasonably reflect the product or service, geography, and timeframe; and taking that data and processing it in a way to
give meaningful results, are all time-consuming and difficult activities.
To mitigate these challenges, and to allow pharmaceutical companies to estimate GHG emissions with the minimum
amount of time and resource, we have developed these principles:

■ Keep the goal in mind: Estimating GHG emissions ■ Scale over precision: If we can estimate an entire
and reporting them is not an end in itself, it’s all about value chain’s GHG emissions using a methodology that
reduction. This guide is about facilitating the quick is representative enough to drive business decisions
and accurate identification of emissions ‘hotspots’ toward meeting our goals, then the priority should be
that companies can then use to prioritise and develop to account for the entire value chain emissions with
emissions reduction initiatives. reasonable accuracy rather than a subset at higher
accuracy.
■ Focus effort: Calculating GHG emissions in value
chains can be complex; companies should focus time ■ Improve accuracy over time: Companies’ GHG
and resources on those Scope 3 categories that have estimations will improve as participants collect and share
significant emissions, and from value chain partners data from suppliers to create an ever-improving body of
that companies will be able to influence to reduce emissions factor data for pharma-specific activities.
emissions. ■ Suitable for all: Some companies will already be at an
■ Keep it simple: Many approaches are available to advanced stage with GHG calculation capability, and
calculate Scope 3 emissions, with differing levels of this guide will give them the tools to go further. But for
complexity and accuracy. We suggest using the simplest those just starting out, this document will enable them
method that will produce results with an acceptable to quickly reach a reasonable level of accuracy for the
level of accuracy. categories they consider material.
APPROACH

STEP 1 STEP 2
Identify significant Decide on appropriate
scope 3 categories calculation method

This guide is based on a

four-step iterative process:

STEP 3
STEP 4
Select emissions
Calculate GHG
factors and collect
emissions
relevant data
 GUIDANCE PRINCIPLES 7

STEP 1 IDENTIFY SCOPE 3 CATEGORIES WITH

SIGNIFICANT EMISSIONS
There are 15 categories of scope 3 emissions, which are summarised in the table below. Further details – particularly on
the boundaries (i.e., what should and should not be included) – is in Appendix 1:

S C O P E 3 C AT EG O RY DEFINITION

1 PURCHASED GOODS Includes all upstream cradle-to-gate emissions from the production of products
AND SERVICES
purchased or acquired by the reporting company in the reporting year.
2 C A P I TA L G O O D S Includes all upstream (i.e., cradle-to-gate) emissions from the production of capital
goods purchased or acquired by the reporting company. Capital goods are final
products that have an extended life and are used by the company to manufacture a
product, provide a service, or sell, store, and deliver merchandise.
3 F U E L A N D E N E R GY - Includes the emissions of the extraction, production and transportation of fuels and
R E L AT E D A C T I V I T I E S
energy purchased by the reporting company in the reporting year.
4 UPSTREAM Includes emissions from the transportation and distribution of products purchased
T R A N S P O R TAT I O N A N D
DISTRIBUTION by the reporting company in vehicles/facilities not owned or operated by the
reporting company.
5 WA S T E G E N E R AT E D I N Includes emissions from third-party disposal and treatment of waste that is
O P E R AT I O N S
generated in the company’s owned or controlled operations. This category includes
emissions from disposal of both solid waste and wastewater. Only waste treatment
in facilities owned or operated by third parties is included in scope 3.
6 B U S I N E S S T R AV E L Includes emissions from the transportation of employees for business-related
activities in vehicles owned or operated by third parties, such as aircrafts, trains,
buses, and passenger cars.
7 E M P LOY E E Includes emissions from the transportation of employees between their homes and
COMMUTING
their worksites. Emissions may arise from automobile travel, bus travel, rail travel,
air travel (if any) or other modes of transportation.
8 UPSTREAM LEASED Includes emissions from the operation of assets that are leased by the company and
ASSETS
not already included in the company’s scope 1 or scope 2 inventories.
9 DOWNSTREAM Includes emissions from transportation and distribution of products sold by the
T R A N S P O R TAT I O N A N D
DISTRIBUTION reporting company between the company’s operation and the end consumer, if not
paid for by the reporting company, in vehicles and facilities not owned or controlled
by the reporting company.
10 PROCESSING OF SOLD Includes emissions from processing of intermediate products by third parties (e.g.,
PRODUCTS
manufacturers) after sale by the reporting company.
11 USE OF SOLD Includes emissions from the use of goods and services sold by the reporting
PRODUCTS
company in the reporting year. The scope 3 emissions from use of sold products
include at least the scope 1 and 2 emissions of end users.
12 END OF LIFE Includes emissions from the waste disposal and the treatment of all products sold
T R E AT M E N T O F S O L D
PRODUCTS by the reporting company at the end of their life, during the reporting year.

13 DOWNSTREAM LEASED This category is applicable to lessors, i.e. companies that receive payments from
ASSETS
lessees. This category includes emissions from the operation of assets that are
owned by the reporting company, acting as lessor, and leased to other entities in
the reporting year that are not already included in scope 1 or scope 2.
14 FRANCHISES This category includes emissions from the operation of franchises not included in
scope 1 or scope 2. A franchise is a business operating under a license to sell or
distribute another company’s goods or services within a certain location.
15 INVESTMENTS Includes emissions associated with the reporting company’s investments in the
reporting year, not already included in scope 1 or scope 2. This category is mostly
applicable to investors, i.e. companies that make an investment with the objective
of making a profit, and companies that provide financial services.
8 GREENHOUSE GAS EMISSIONS CALCULATION GUIDANCE

Ideally, a company should calculate emissions for each To determine the scale of GHG emissions for the 15
of these categories. However, some categories are categories, companies should carry out a quick calculation
much more relevant and significant than others, and it is using this guide, or publicly available tools like the GHG
prudent to tackle only categories that are relevant for the Protocol Scope 3 Evaluator1. Any screening assessment
reporting company. This requires a screening process to should be in alignment with Greenhouse Gas Protocol
determine relevance to the business. Scope 3 methodology guidance. Looking at peer
companies’ Scope 3 emissions is also a useful indication
Approaches and rules to determine relevance will vary by
of scale. This may be from peers’ corporate sustainability
company but in our view there are two ways to do this:
disclosures or from other data providers, such as the
Firstly, based on the scale of GHG emissions and secondly,
Carbon Disclosure Project (CDP).
on the ability the company has to influence emissions
reductions at value chain partners or within their own A review of a pharmaceutical company’s CDP emissions
operations. Other factors may also be considered such as data shows that there are six categories that dominate
supplier geography, size, tier within the value chain and GHG emissions:
carbon intensity.

S C O P E 3 C AT EG O RY E M I S S I O N S I N TO N N E S C O2e
Purchased goods and services 4,746,971
Use of sold products 904,707
Capital goods 696,634
Fuel and energy- related activities 605,035
Waste generated in operations 454,633
Downstream transportation and distribution 452,584
End of life treatment of sold products 261,253
Upstream transportation and distribution 213,194
Processing of sold products 184,211
Business travel 110,259
Employee commuting 102,811

With these emissions ‘hotspots’ identified, it then becomes relevant to think about how a pharmaceutical company
could influence a reduction in emissions.

H OT S P OT ABILITY E X P L A N AT I O N
C AT EG O RY TO I N F LU E N C E
REDUCTION

PURCHASED HIGH Companies have considerable influence over suppliers, including their
GOODS AND
SERVICES behaviour in terms of efficiency and GHG emissions reduction.
USE OF SOLD MEDIUM Pharmaceutical companies can influence over how their products are
PRODUCTS
used, through design choices and guidance for consumers on product use.
C A P I TA L G O O D S MEDIUM Influencing producers of capital goods such as computers or machinery is
difficult and reducing the need for them internally is also a challenging task.
FUEL AND HIGH Influence on extraction, production and transportation of fuels and energy
E N E R GY R E L AT E D
ACTIVITIES will be weak, but high for reducing consumption of fuel.
WA S T E HIGH Companies should be able to control how their own waste is processed
G E N E R AT E D
IN OWN and should be able to bring about reductions in waste generated.
O P E R AT I O N S

UPSTREAM HIGH Companies can influence GHG emissions at the transport companies that
T R A N S P O R TAT I O N
AND deliver the goods they buy by diligently managing logistics; and should
DISTRIBUTION
have even more influence on the transport companies that distribute the
goods that the company sells.

Therefore, for this company the target five categories for calculating emissions should be purchased goods and
services, use of sold products, waste generated in own operations, fuel and energy related activities, and upstream
transportation and distribution. It is worth noting that for other pharmaceutical companies with different product mixes,
the conclusions may be different.

1
https://ghgprotocol.org/scope-3-evaluator
 GUIDANCE PRINCIPLES 9

STEP 2 DECIDE ON AN APPROPRIATE

CALCULATION METHOD
These are the three main emissions calculation methods we recommend companies use:
■ Primary data methods – this approach involves ■ Secondary data methods – estimates emissions by
collecting product-level cradle-to-gate GHG inventory collecting activity data on the economic value of goods
data from value chain partners. It is the most accurate and services or the mass or other unit of measure
method, if carried out correctly, because it provides (hours worked, or km travelled) and multiplying by
an emissions factor for the specific product or service relevant secondary emission factors.
purchased or sold. However, it does require a relatively ■ Proxy data method – If a reporting company has a
high level of sophistication from value chain partners in
sufficiently large number of product-level emissions
terms of their ability to follow a reliable methodology
factors that are available from value chain partners,
such as the GHG Protocol Product Standard, and their
this trusted data can be used as proxy for the same or
willingness to provide this level of detail.
similar products from other partners.

In addition, there is a ‘hybrid methodology’ that uses a combination of primary data (where available) and secondary
or proxy data to fill the gaps. This is an increasing common approach as companies seek to develop an approach that is
pragmatic and efficient in terms of resources available. In this guidance we have not treated this as a distinct calculation
method, although recognise that companies may use a combination of the three approaches outlined above so long as
this is done so in an appropriate and transparent matter (for example, disclosing which approach is used for each scope
3 category).

The table below summarises the strengths and weaknesses of each approach:

METHOD PROS CONS

S U P P L I E R-DATA ■ Accurate data from suppliers on ■ Time-consuming to collect data and verify
their scope 1 and 2 emissions, rather its quality
than using industry or sector wide ■ Suppliers may not be in the position to
averages.
accurately allocate emissions to individual
products
■ Not all suppliers will share data

S EC O N DA RY-DATA ■ Quick to carry out calculations ■ Industry or sector wide averages that
may not reflect specific work undertaken
■ Easy to scale to whole value chain
to reduce emissions within a company’s
■ Average data relatively accurate if supply chain.
good emissions factors are used
■ Requires time to ensure emissions factors
have a good match for time, geography, and
technology
■ Spend data relies on EEIO models, that may
contain assumptions.
P R OX Y ■ If enough data exists, it can be an ■ Requires time to ensure extrapolation has
accurate and quick way to fill in gaps a good match for time, geography, and
technology
■ Requires a good sample size for accurate
results

In this guidance we recognise that different companies are at different stages of their journey to calculate GHG
emissions. Some are more advanced than others, and some are just getting started. In the following sections, when
outlining the methods of calculation for each of the scope 3 categories, we give a choice for companies to use primary
or secondary data calculation method.
10 GREENHOUSE GAS EMISSIONS CALCULATION GUIDANCE

STEP 3 SELECT EMISSIONS FACTORS AND

COLLECT RELEVANT DATA
Emissions factors: There are several different sources of We also strongly recommend that the factors used are
GHG emissions factors, some are publicly available for done so in a consistent way – i.e., that once a source is
free – such as those published by national governments chosen, that this is used for all categories (where possible)
– while others are offered on a commercial basis. A list and on a year on year basis. Furthermore, we advise that
of emission factor providers can be found in Appendix B. emissions factors are updated on an annual basis in line
Please note that this is not an exhaustive list. with updates in source factors.
In the guidance, we have specified some emissions Emission factors based on environmentally extended
factors, and these are clearly referenced. In most cases input-output (EEIO) models are expressed on a
these are UK-based UK emissions factors produced by purchasers’ price basis in real terms (i.e. the actual
the UK Government to ensure a consistent approach. sales price in that year including taxes on products and
As most pharmaceutical companies trade in terms of US distribution margins). Reporting companies should take
Dollars, these factors have been adjusted accordingly into subsequent price changes into account when using the
a kgCO2/$ rather than kgCO2/£. factors shown below, by adjusting for inflation from the
date of the creation of the database to the present day.
However, it is up to individual companies to choose their
In your calculations, you can use a five-year average for
own emissions factors appropriate to their business,
exchange rates to avoid short term fluctuations which
particularly if they are following more advanced methods
could skew results.
of calculations. In all cases, the source of emissions factors
should be clearly and transparently reported alongside Activity data collection: The following scope 3 category
the calculation of emissions. sections specify the data required and recommended
calculation methods for each of the scope 3 GHG
categories. In general, activity data (spend, or amounts of
purchased or sold goods, or distance travelled) should be
available from internal company systems, or from value
chain partners (i.e. customers or suppliers).

STEP 4 CALCULATE
GHG EMISSIONS
Once a source of emissions factor has been selected and activity data collected, calculating emissions is a reasonably
straightforward process. Calculations should take the following format:

TOTAL EMISSIONS, TONNES CO2e =

[EMISSIONS FACTORS (KG CO2e/$ SPEND OR KG CO2e/UNIT

OF MEASUREMENT)]

X
[SPEND OR AMOUNT OF ACTIVITY (UNIT OF MEASUREMENT COULD BE KG,
OR HOURS WORKED, OR DISTANCE TRAVELLED)] / 1,000

All calculations should cover an annual period (the reporting year). This may be on a calendar or fiscal basis.
 CATEGORY GUIDANCE 11

CATEGORY
GUIDANCE
The following sections take each of the 15 GHG categories and offer guidance on the appropriate approached to
calculate emissions.

PURCHASE OF GOODS AND SERVICES CATEGORY 1

The upstream cradle-to-gate emissions from the production of products, goods and services purchased or acquired by
the reporting company in the reporting year.

The first step is to understand the types and amounts We recommend the following breakdown, based on
of goods and services purchased over the course of the an analysis of a sample of pharmaceutical companies
reporting year. The type of information available will be currently reporting and relevant data provided by PEG
different from company to company, but where possible participating companies:
this should in include:
■ Individual good and service name C AT EG O RY / S U B C AT EG O RY
■ Category and sub category where applicable
PA C K A G I N G
■ Supplier name and location
Paper
■ The spend on the good and service purchased
Glass
■ The quantity of the item purchased (this may be useful
in future calculations) Plastic

Exclusions (as these are covered by other categories): R AW M AT E R I A L S

■ Purchases of capital equipment API / Intermediates / Preparations

■ Warehousing and logistics Bulk chemicals
■ Business travel Excipients
The next step is to segment this data in a way that is Biological products
applicable to the method of calculation the reporting Other chemical products
company has decided to adopt. In the first instance, we
suggest ‘category level’ will suffice, except for those goods R E S E A R C H & D E V E LO P M E N T
and services that are unique to the pharmaceutical sector
I N F O R M AT I O N S E R V I C E S
or are particularly carbon intensive, such as packaging and
raw materials, where more detailed information at a ‘sub
G E N E R A L & A D M I N I S T R AT I O N
category’ level should be sought.

USING SECONDARY DATA

We suggest that GHG emissions relating to purchased goods and services are calculated based on spend data. Once this
information has been collected it is then a case of applying the appropriate emissions factor (kg CO2e per monetary
value of spend by product category). The calculation is:

[EMISSIONS FROM GOOD AND SERVICES, TONNES CO2e] =

([SPEND ON PURCHASED GOODS OR SERVICES, $]

X
[EMISSIONS FACTOR, KG CO2e PER $])/1,000
12 GREENHOUSE GAS EMISSIONS CALCULATION GUIDANCE

The table below suggests some emissions factors for key Industrial emissions are attributed to final products
goods and services. The factors are based on a model of bought by consumers. The result is an estimate of the
the economy, known as the input-output model, which total upstream emissions associated with the supply of
describes in monetary terms how the goods and services goods or services.
produced by different sectors of the economy are used by
We have used the UK government’s emissions factor
other sectors to produce their own output. These monetary
database Indirect emissions from the supply chain2 as it is
accounts are linked to information about the greenhouse
based on international averages for GHG emissions and
gas emissions of different sectors of the economy.
provides a good range of product and service categories.
However, please note that companies can use any other
emission factor sources and should be make sure that
their approach is consistent.

UK government emissions factors for pharma-specific categories adjusted for 2019 US dollar prices3.

C AT EG O RY / S U B C AT EG O RY S U G G E S T E D E M I S S I O N FA C TO R
(KG C O2e P E R U S$)

PA C K A G I N G
Paper 1.858

Glass 3.431

Plastic 1.507

R AW M AT E R I A L S
API / Intermediates / Preparations 0.541

Bulk chemicals 1.110

Excipients 1.792
Other chemical products 2.466

R E S E A R C H & D E V E LO P M E N T 0.380

I N F O R M AT I O N S E R V I C E S 0.276

G E N E R A L & A D M I N I S T R AT I O N 0.281

For example, if $1,000 is spent on paper packaging, then the associated CO2e emissions would be 1.803 tonnes
of CO2e emitted during all stages of the production of these goods, including raw material extraction, processing,
manufacturing, transportation, packaging etc.
We appreciate the level of imprecision associated with this methodology that is associated with both the high-
level segmentation of goods and services purchased and the application of the emissions factor (see appendix C).
However, our view in this guidance is that this is enough to enable a pharmaceutical company to gauge the scale
of their scope 3 emissions in this category and the priority areas for potential reduction. To improve the precision
of these calculations, a company may choose to select their own emissions factors based on other publicly
available or commercial databases. Alternatively, they may choose to follow the advanced methodology for some
or all goods and services purchased and use data on emissions from suppliers.

2
Table 13 - Indirect emissions from the supply chain, Department for Environment, Food & Rural Affairs, 2012 (updated 2014)
3
See Appendix C of this document for emissions factors not adjusted for currency and year
 CATEGORY GUIDANCE 13

USING PRIMARY DATA

This methodology relies on information from suppliers on the GHG emissions associated with the production and supply
of goods or services received. There are two potential approaches:

(i) Calculation of supplier or product specific emissions factors

For this method, a company must request specific data from suppliers, from which they can then calculate either
a supplier-specific emission factor, or if a supplier has allocated emissions to individual products, product-specific
emissions factors.
To calculate supplier-specific emissions factors, suppliers must provide both their total emissions and their total
units or value of production. To calculate the emissions factor, use this formula:

[SUPPLIER-SPECIFIC EMISSIONS FAC TOR , CO2e PER KG PRODUC TION] =

[TOTAL GHG OF SUPPLIER, KG CO2e] / [TOTAL PRODUCTION, KG]

This factor can then be used by the company to calculate the emissions associated with the proportion of goods
they receive. No calculations are needed if a product-specific emissions factor has been provided by the supplier,
but companies should verify that the methodologies used for calculation and allocation are robust.
Once you have calculated the supplier-specific emissions factors using the above formulae or you have been
given product-specific emissions factors by suppliers then you can calculate your total GHG emissions.
The calculation is:

[EMISSIONS FROM GOOD AND SERVICES, TONNES CO2e] =

([QUANTITY PURCHASED, KG]

X
[SUPPLIER – SPECIFIC EMISSIONS FACTOR, KG CO2e PER KG])/1,000

Below is a working example of a pharmaceutical company calculating emissions based on supplier-specific

emissions factors. All names and figures are illustrative only.

G O O D/S E R V I C E Q UA N T I T Y SUPPLIER S U P P L I E R-S P EC I F I C TOTA L E M I S S I O N S

PURCHASED E M I S S I O N S FA C TO R (TO N N E S C O2e)
(KG) (KG C O2e/KG)

API 300 Pharma ABC 37.82 11.34

Excipient – starch 9,000 Chemicals XY 1.47 13.23

Excipient – sugar 9,000 Chemicals XY 0.98 8.82

Packaging – glass 18,000 Pack XYZ 2.09 37.6

bottles

Packaging – Plastic 4,000 Pack XYZ 0.28 1.12

label and box
TOTA L 72.13
14 GREENHOUSE GAS EMISSIONS CALCULATION GUIDANCE

Companies should not only collect the supplier-specific emissions factors for the products and services
purchased, but also find out the methodology by which those factors were calculated. Only data from suppliers
with a robust cradle-to-gate GHG inventory process should be used for calculating emissions.
To undertake this assessment across the entire range of goods and services procured is complex and resource
intensive. Companies using the supplier-data method are likely to find that not all suppliers of goods and
services are willing or able to provide accurate emissions factors. This can be overcome by using the data already
provided by suppliers to create a set of proxy emissions factors that can then be used for suppliers providing
similar goods.
For example, if 100 out of 500 API suppliers provide good emissions factor information, those 100 sets of data
can be divided into API type and geography to give a subset of emissions factors that can be used to calculate
emissions from the APIs purchased from the remaining 400 suppliers.

(ii) Calculation of emissions based on spend

In many cases, it will not be possible or efficient to calculate emissions at a product level, particularly if a supplier
provides a range of goods and services. In this case, is it acceptable to request the total emissions from a supplier
and then pro-rate this based on spend. Put another way, this approach requires a company to understand each
suppliers’ total emissions and their revenue, and then assume that a proportion of this relates to their spend
with that supplier.

[EMISSIONS FROM GOOD AND SERVICES, TONNES CO2e] =

([SUPPLIER EMISSIONS, TONNES] / [SUPPLIER REVENUE, $])

X
[COMPANY SPEND WITH SUPPLIER, $]

Our recommendation is that whichever approach is used, suppliers should provide:

■ Emissions factors used
■ Details of how emissions were calculated, and data sources used, and whether from primary or
secondary sources.
■ Description of any verification or assurance carried out. (Preference should be given to verified data.)
 CATEGORY GUIDANCE 15

CAPITAL GOODS CATEGORY 2

All upstream (i.e., cradle-to-gate) emissions from the production of capital goods purchased or acquired by the reporting
company. Capital goods are final products that have an extended life and are used by the company to manufacture a
product, provide a service, or sell, store, and deliver merchandise.

The calculation methods for category 1 (Purchased goods

and services) and category 2 (Capital goods) follow the
same logic. For guidance on calculating emissions from
category 2 (Capital goods), refer to the guidance in the
previous section for category 1 (Purchased goods and
services).
Below are the relevant emissions factors for capital goods
taken from the UK government figures4.

C AT EG O RY / S U B C AT EG O RY S U G G E S T E D E M I S S I O N FA C TO R
(KG C O2e P E R U S$)

C O M P U T E R, E L EC T R O N I C A N D O P T I C A L P R O D U C T S 0.645

E L EC T R I C A L EQ U I P M E N T 0.973

M A C H I N E RY A N D EQ U I P M E N T 0.878

M OTO R V E H I C L E S, T R A I L E R S A N D S E M I-T R A I L E R S 0.964

CONSTRUCTION 0.587

For the original emissions not adjusted for currency or inflation, see appendix C of this document.

4
Table 13 - Indirect emissions from the supply chain, Department for Environment, Food & Rural Affairs, 2012 (updated 2014)
16 GREENHOUSE GAS EMISSIONS CALCULATION GUIDANCE

FUEL AND ENERGY-RELATED ACTIVITIES CATEGORY 3

This category includes: emissions from the extraction, production and transportation of fuels consumed, including fuels
consumed in the generation of electricity, steam, heating and cooling; from energy purchased and from the generation
of energy consumed in a transmission and distribution system by the reporting company in the reporting year. Emissions
associated with the combustion of fuels, or the combustion of fuels to produce electricity are excluded from this category.
Fuel and energy-related activities emissions are calculated Often ‘Well to Tank’ (WTT) emissions factors will already
by using secondary (e.g. industry average) emission factors be available from when your scope 1 GHG inventory was
for upstream emissions per unit of consumption. It relies calculated. If they are not available, we suggest using
on a knowledge of what and how much fuel is used. the UK Government’s ‘Well to Tank’ (WTT) emissions
factors to calculate emissions for this category5. To be
This information should be available based on scope 1
consistent throughout this document, we have used UK
and 2 emissions calculations for your organisation.
based emission factors, but we would like to reiterate that
For electricity, the country of generation should also
reporting companies can use other viable alternatives if
be recorded.
they want.

For fuel, the calculation is:

[FUEL AND ENERGY-REL ATED AC TIVITIES – FUEL , TONNES CO2e] =

([FUEL USED, KWH]

X
[WTT EMISSIONS FACTOR, KG CO2e PER KWH])/1,000

For electricity, the calculation is:

[FUEL AND ENERGY-REL ATED AC TIVITIES – ELEC TRICIT Y, TONNES CO2e] =

([ELECTRICITY USED, KWH]

X
[WTT EMISSIONS FACTOR, KG CO2e PER KWH])/1,000

To calculate emissions from transmission and distribution losses, please follow the same calculation logic as for
WTT but replace the emissions factor with T&D emission factors.

5
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 CATEGORY GUIDANCE 17

UPSTREAM TRANSPORTATION AND DISTRIBUTION CATEGORY 4

Emissions from the transportation and distribution of products purchased by the reporting company in vehicles/facilities
not owned or operated by the reporting company. It also includes emissions from transportation and distribution services
purchased by the reporting company (either directly or through an intermediary), including outbound logistics for sold
products, inbound logistics and transportation and distribution between a company’s own facilities.
Calculating emissions associated with the distribution of Emissions factors can vary by vehicle, region, or country,
goods and services to the company from a supplier is not and companies should be careful in selecting factors
a straightforward process. There is no simple way to use which most closely resemble their supply chain logistics
proxy data – like spend – as it is unlikely that suppliers will context. In the US and the UK, there are government
itemise distribution costs. Given this, we propose using a databases with transport emissions factors6,7.
distance-based methodology that requires a company to
either estimate the mode of distribution (e.g., rail, sea or
air) and the distance the goods have been transported, or
to ask this directly of suppliers. In practice, it may be better The calculation is:
to use a sample of supplier information to use as a proxy.
[EMISSIONS FROM UPSTREAM
The distance-method involves determining the mass, TR ANSPORTATION AND
distance, and mode of each shipment, then applying the DISTRIBUTION, TONNES CO2e] =
appropriate mass-distance emissions factor for the vehicle
used. These emissions factors are measured in emissions
for one tonne of goods transported over one kilometre ([MASS OF GOODS, KG]
(kg CO2e per tonne-km), or emissions for one twenty-
foot container equivalent of goods transported over one
kilometre (kg CO2e per TEU-km).
X
[DISTANCE TRAVELLED, KM]

X
[EMISSIONS FACTOR, KG CO2e PER
TONNE-KM])/1,000

For example:

ITEM MASS OR D I S TA N C E VEHICLE CLASS VEHICLE TYPE TOTA L E M I S S I O N S

TRANSPORTED VO LU M E T R AV E L L E D E M I S S I O N S FA C TO R (TO N N E S C O2e)
OF GOODS (K M) (KG C O2e/TO N N E
(TO N N E S) O R T E U/K M)

API 0.3 300 HGV refrigerated, rigid 0.619 0.06

(>3.5-7t)

Chemicals 9 800 HGV rigid (>17t) 0.218 1.57

Chemicals 10.62 9600 Container ship (8,000 0.013 1.28

TEU+)

Packaging 22 500 HGV articulated (>33t) 0.090 0.99

TOTA L 3.90

6
UK government GHG Conversion Factors 2020, developed by Department for Business, Energy & Industrial Strategy
7
U.S. EPA Climate Leaders GHG Inventory Protocol, Optional Emissions from Commuting, Business Travel and Product Transport
18 GREENHOUSE GAS EMISSIONS CALCULATION GUIDANCE

WASTE GENERATED IN OPERATIONS CATEGORY 5

Emissions from third-party disposal and treatment of waste that is generated in the company’s owned or controlled
operations. This category includes emissions from disposal of both solid and liquid waste, as well as waste water.
Only waste treatment in facilities owned or operated by third parties is included in scope 3.

The information required for this category is the following: ASSUMPTIONS

■ Amount and type of waste produced by each reporting All hazardous waste is considered as incinerated.
company site The emission factors used should come from a
recognized database. Non-hazardous waste is considered
■ Type of treatment performed as municipal waste, and waste that is recycled are
■ Amount and type of wastewater produced by site and considered material-related (e.g.: paper/cardboard,
sent to external treatment facilities plastic, metal, etc.).
Waste treatment at facilities owned or controlled by
the reporting company is accounted for in scope 1 and
scope 2. Treatment of waste generated in operations is
categorized as an upstream scope 3 category because
waste management services are purchased by the
reporting company.
We do not recommend reporting emissions from the
transportation of waste, since these will not be material to
the final emissions figure for this category.

The calculation is:

[EMISSIONS FROM WASTE GENER ATED IN

OPER ATIONS, TONNES CO2e] =

[MASS OF WASTE, KG]

X
[% BY DISPOSAL METHOD]

X
[EMISSIONS FACTOR FOR DISPOSAL METHOD]/1,000

For example:

DISPOSAL METHOD E M I S S I O N S FA C TO R C O2e/KG

Recycling 0.0214

COMMERCIAL AND 0.458

I N D U S T R I A L WA S T E Landfill

Incineration 0.0214

WA S T E WAT E R Effluent treatment plant 0.708

Emissions factors in this table come from the UK government GHG conversion factors database8.

8
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 CATEGORY GUIDANCE 19

BUSINESS TRAVEL CATEGORY 6

Emissions from the transportation of employees for business-related activities in vehicles owned or operated by third
parties, such as aircrafts, trains, buses, and passenger cars. This should not include any vehicles owned or controlled by
the company.

By far the most significant emissions from business travel

for pharmaceutical companies relates to air travel, which is The calculation is:
the most carbon intensive mode of travel and so should be
the place to start. The simplest approach to is to ask travel [EMISSIONS FROM BUSINESS
agencies for distances travelled. However, it is often not TR AVEL , TONNES CO2e] =
possible to get this data and only spend data is available.
In this case it is important to understand the details of the
journeys undertaken – including the origin and destination. [DISTANCE TRAVELLED, KM]
From this information estimates then need to be made to
determine the distances travelled and by which mode. X
For air travel it is important to distinguish between short [EMISSIONS FACTOR, KG CO2e/
and long-haul and business and economy journeys, as PASSENGER KM]/1,000
different emissions factors apply to each of these.

The emissions factors below are a selection from the UK government GHG conversion factors9. Once again we have used
UK based emission factors for consistency across this document, however reporting companies can use other sources
for this calculation.

T R AV E L T Y P E D I S TA N C E (K M) E M I S S I O N S TOTA L E M I S S I O N S
FA C TO R (KG C O2e/ (TO N N E S C O2e)
PA S S E N G E R K M)

Flight- Short haul, economy class 55,463,471 0.153 8,485.91

Flight - Long haul, economy class 34,883,322 0.146 5,092.97

Flight - Short haul, business class 293,910 0.229 67.31

Flight - Long haul, business class 244,587,745 0.424 103,705.20

National rail - passenger 83,155,687 0.036 2,993.60

Ferry - average 52,467 0.113 5.93

Car - average, petrol 45,912,347 0.174 7,988.75

Car - average, diesel 12,548,892 0.168 2,108.21

Taxi 541,266 0.145 78.45

Coach 56,211 0.273 15.35

Bus 127,368 0.103 13.12

TOTA L 130,554.83

All emissions related to car travel by sales representatives should be included in Scope 1, as the car is paid for by the
reporting company. Sales representatives’ emissions related to taxis and public transport should be included in Scope 3
under business travel.
Emissions relating to subsistence and accommodation (i.e., hotel nights) have been excluded on the basis of significance
and the challenges associated with calculating a representative potential emissions factor. This could be done on a case
by case basis if a company thought there was a particularly high proportion of hotel stays in one location over an annual
period (for example, near the company HQ).

9
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20 GREENHOUSE GAS EMISSIONS CALCULATION GUIDANCE

EMPLOYEE COMMUTING CATEGORY 7

This category includes emissions from the transportation

of employees between their homes and their worksites.
The calculation is:
We suggest that companies do not include emissions
from remote working in this category, as the calculation EMISSIONS FROM EMPLOYEE
process is not worthwhile for the emissions that could be COMMUTING , TONNES CO2e =
measured.

USING SECONDARY DATA [NUMBER OF EMPLOYEES]

For most companies, employee commuting will not be a
materially significant category, and we recommend that the
X
average data method is used. Companies should estimate: [AVERAGE COMMUTE X 2]
■ The average commuting distance for each work site X
■ The likely mode of transport as a % of the workforce at [COMMUTING DAYS]
each site
■ The number of commuting days in a year
X
[% OF DISTANCE FOR EACH
For this example, we have used the UK Government TRANSPORT TYPE]
GHG Conversion Factors for Company Reporting, 2018,
averaging the diesel and petrol emissions factors for car X
travel. We multiply the average commute distance by 2 to [EMISSIONS FACTOR] /1,000
account for the return journey each day.

Employee travel emissions calculations for standard methodology.

(TO N N E S C O2e)
COMMUTE KM

(0.044KG/K M)

(0.038KG/K M)
COMMUTING

(0.18KG/K M)

(0.10KG/K M)

B I K E/ WA L K
E M P LOY E E S

EMISSIONS
LO C AT I O N

(0KG/K M)
AV E R A G E

S U BWAY

TOTA L
DAYS

RAIL
CAR

BUS

London 12,000 35 230 5% 35% 35% 15% 10% 10,181.64

Peterborough, UK 600 15 230 70% 10% 0% 20% 0% 622.66

Chicago, US 2,500 45 240 60% 0% 25% 5% 10% 6,615.00

Chicago, US 3,500 45 240 60% 10% 10% 0% 20% 8,784.72

Peterborough, UK 8,600 20 230 65% 0% 20% 10% 5% 10,649.55

TOTA L 36,833.59

USING PRIMARY DATA Companies should collect data on:

Companies with the resources or easily available data ■ Total distance travelled by employees over the
may wish to collect actual commuting distances and reporting period (e.g., passenger-kilometres travelled)
transport types from employees and use the distance-
■ Mode of transport used for commuting (e.g., train,
based method. It may be easier to survey only a smaller
subway, bus, car, bicycle).
sample of employees and extrapolate up to the total
employee number. ■ Number of days per year commuting to work.
The calculation using the distance-based method will
follow the same logic as the calculations for business
travel. We recommend using emissions factors from the
country or region that employees are based in.
 CATEGORY GUIDANCE 21

UPSTREAM LEASED ASSETS CATEGORY 8

Emissions from the operation of assets that are leased by the company and not already included in the company’s scope
1 or scope 2 inventories.
In most cases, it is unlikely that the emissions associated In the case where there is no operational control, the
with leased assets are significant or are not under the company should seek to obtain emissions data relating
operational control of the company. In the case of the to the total building and the pro-rate this emission based
latter, where the pharmaceutical company has control on the floor area occupied. This data should be readily
then the emissions associated with these assets – for available from the leasing company or their agent.
example, office or laboratory space – should be treated as
scope 1 or 2 emissions (rather than scope 3).

IN MOST CASES, IT IS UNLIKELY

THAT THE EMISSIONS ASSOCIATED
WITH LEASED ASSETS ARE
SIGNIFICANT OR ARE NOT UNDER
THE OPERATIONAL CONTROL OF
THE COMPANY.
22 GREENHOUSE GAS EMISSIONS CALCULATION GUIDANCE

DOWNSTREAM TRANSPORT AND DISTRIBUTION CATEGORY 9

Emissions from transportation and distribution of products sold by the reporting company between the company’s
operation and the end consumer, if not paid for by the reporting company, in vehicles and facilities not owned or
controlled by the reporting company.

For the pharmaceutical industry, this category will include METHODOLOGY FOR PRODUCT
TRANSPORTATION AND DISTRIBUTION
the transport of medicines to wholesalers, hospitals
and pharmacies, as well as patient travel to pharmacies, If companies have internal systems that record the
doctors, and hospitals to collect medicine. distance and transport mode used to deliver products
to customers where the company does not pay for
Spend data will not be available for transport not paid for distribution, these figures should be used. If this is not
by the reporting company, and so we suggest estimating available, the methodology below should be used instead.
for activity data (patient travel, distances for product
delivery etc.) and the use of emissions factors databases ■ Companies will have to collect information on the mass
using average data. of products sold where the company does not pay for
transport and distribution
We suggest leaving refrigeration of products during travel
and the warehousing of products (refrigerated or not)
■ Then companies will have to estimate distances
out of these calculations as the work involved will not be their products travel to wholesalers, hospitals and
proportionate to the extra emissions estimated. pharmacies.
If transport of products where the reporting company
does not pay for transport is negligible, we suggest not
calculating emissions.
Where there is significant spend on transporting the
reporting company’s products, companies should
calculate distances from their top five distribution centres
to delivery points (only at destinations where transport
is not paid for by the reporting company), look up the
distance travelled by the top customer at each distribution
centre, and use these distances as a proxy for all other
products. This will provide an acceptable level of accuracy
without incurring large amounts of research time.
We have used UK government emissions factors for
freighting goods10, a selection of which we use in the
example calculation below.

VEHICLE CLASS MASS OR D I S TA N C E VEHICLE TYPE TOTA L E M I S S I O N S

VO LU M E T R AV E L L E D EMISSIONS (TO N N E S C O2e)
OF GOODS (K M) FA C TO R (KG
(TO N N E S) C O2e/TO N N E
O R T E U/K M)

HGV refrigerated, rigid (>3.5-7t) 1000 1,500 0.619 928.06

Short haul flight to/from UK 100 1,800 2.209 397.62

Container ship (8,000 TEU+) 1000 9600 0.013 120.94

TOTA L 1,446.62

10
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 CATEGORY GUIDANCE 23

USING PRIMARY DATA To calculate emissions, we suggest using the following

If emissions are significant and companies want to assumptions for a European context:
improve the accuracy of calculations, more data should be ■ Average journey of 8km (return trips of 4km each way).
sought from more company sites on distances travelled by We use the French national statistics bureau data for
products. convenience store shopping11.
METHODOLOGY FOR PATIENT TRAVEL FOR
■ Car emissions factor of 0.174kg CO2e per km travelled.
PICK-UP OF MEDICAL PRODUCTS We use the UK government conversion factor for a
Companies should collect data from internal systems medium sized petrol car.
on the number of products sold directly to customers, ■ 50% of journeys by car. (Our estimate, but likely higher
prescription products or over the counter items, for in North America, and lower in the rest of the world.)
instance by box or bottle. (We account for purchases by ■ 30% of the journey attributable to medical product.
individual products, not by mass, or value, as this is how (Our estimate, based on the fact that other items may
patients buy OTC items). be purchased, and more than one medical product will
be bought per journey.)

The formula will be:

[AVERAGE JOURNEY DISTANCE]

X
[% CAR USE FOR MEDICAL PRODUCTS]
X
[% OF JOURNEY ATTRIBUTED PER PRODUCT]
X
[NUMBER OF PRODUCTS SOLD]
X
[EMISSIONS FACTOR KG CO2e/KM]/1000

= TOTAL TONNES CO2e

Calculating patient emissions using the above formula

JOURNEY CAR USE FOR JOURNEY NUMBER OF CAR EMISSIONS TOTA L E M I S S I O N S

D I S TA N C E K M PURCHASE AT T R I B U T E D PRODUCTS FA C TO R (TO N N E S C O2e)
OF MEDICAL PER MEDICAL SOLD (KG C O2e / K M)
PRODUCTS PRODUCT

8 50% 30% 10,000,000 0.174 2,082.36

11
https://www.insee.fr/fr/statistiques/1281145
24 GREENHOUSE GAS EMISSIONS CALCULATION GUIDANCE

PROCESSING OF SOLD PRODUCTS CATEGORY 10

Emissions from processing of intermediate products by third parties (e.g., manufacturers) subsequent to sale by the
reporting company. This category does not include emissions from the manufacture of the intermediate product or use
of the end product bought by the consumer.

If the reporting company produces APIs that are sold to If the Reporting Company produces semi-finished
other pharmaceutical companies, which manufacture final products that are sold to other pharmaceutical
medicines using those APIs, the GHG emissions related to companies, which package these semi-finished products
the processing of these APIs into final medicines at clients’ before selling the final products to end-users, the GHG
plants is part of this category. emissions related to the processing of these semi-finished
products into final product is part of this category.
The standard or advance calculation method specified
for category 1 (purchase on goods and services) can then
be used to determine emissions associated with the
processing of these products.

USE OF SOLD PRODUCTS CATEGORY 11

Emissions from the use of goods and services sold by the reporting company in the reporting year. The scope 3
emissions from use of sold products includes the scope 1 and 2 emissions of end users.

Emissions are divided into emissions from direct use ■ Electricity consumption per use of product, and likely
devices (e.g. electricity-using medical devices), and use pattern
emissions from indirect use devices (e.g. Refrigeration ■ For inhalers, type of propellant used, and quantity
of medicine). We recommend that reporting companies emitted per use
evaluate which categories their products may fall in and
focus on the products with the largest footprint and CALCULATING EMISSIONS FOR
where they have the most influence over. Emissions from DIRECT USE DEVICES
indirect use devices are likely to be much smaller, and Calculating emissions for devices relies on a clear
therefore should only be tackled by companies at an understanding of how these products are used. Individual
advanced stage of emissions calculations. companies are best placed to know the attributes of the
products they sell and can reasonably estimate how they
STANDARD METHODOLOGY are used. The following calculation needs to be repeated
■ Emissions from direct use devices: for each device type or grouping of devices.
1. products that consume energy during their use such
as cars, electrical goods, or software
2. fuels and feedstocks such as petrol, natural gas, [EMISSIONS FROM DIREC T USE
biofuels DEVICES, TONNES CO2e]
3. greenhouse gases or products that emit greenhouse
gases like CO2, CH4, N2O, refrigeration and air-
conditioning equipment, industrial gases, fertiliser, ([NUMBER OF DEVICES SOLD, UNITS]
and inhalers.
For the pharmaceutical industry this includes electrical
X
medical equipment, and emissions from use of propellant [LIFETIME USES]
based inhalers by patients. X
DIRECT USE DEVICES ACTIVITY DATA [ELECTRICITY CONSUMPTION
PER USE, KWH]
The data below should be collected from product
managers and designers, from consumer surveys, and X
from internal systems. It is likely that in some cases these
[EMISSIONS FACTOR, KG CO2e
will be estimates: PER KWH])/1,000
■ Total lifetime expected uses of product(s)
■ Quantities of products sold
■ Where the product is sold
 CATEGORY GUIDANCE 25

Electricity grid emissions factors should be used relating The example below shows how to calculate direct use
to the country in which these products are used. Country phase emissions for a medical device (a physiological
level emissions factors are available from the International Monitoring System), assuming a device is used 270
Energy Agency . days a year for 12 hours a day, with an average power
consumption of 120W, and that it has a useful life of
5 years.

MEDICAL NUMBER SOLD LIFETIME E L EC T R I C I T Y C O U N T RY EMISSIONS TOTA L E M I S S I O N S

DEVICE IN PERIOD USES CONSUMPTION OF USE FA C TO R (KG (TO N N E S C O2e)
(U N I T S) P E R U S E (K W H) C O2e P E R K W H)

Physiological 7,500 1,350 1.44 UK 0.233 3,397.14

Monitoring
System

CALCULATING EMISSIONS FROM INHALERS

Inhaler emissions are likely to be significant given the high global warming potential (GWP) of propellants used.
The table below describes the GWP relative to CO2, for the two most commonly used hydrofluorocarbon (HFC)
propellants, HFC 134a and HFC 227ea, adapted by GHG Protocol from the IPCC Fifth Assessment Report, 2014 (AR5).

NAME CHEMICAL FORMULAE G W P TO C O2

H F C-134A C H 2F C F 3 1,300

H F C-227E A C F 3C H F C F 3 3,350

The calculation that should be used to calculate emissions from inhalers is:

[EMISSIONS FROM INHALERS, TONNES CO2e] =

([NUMBER OF INHALERS SOLD, UNITS]

X
[MASS OF PROPELLANT USED, KG]
X
[GWP OF PROPELLANT])/1,000

For example, the table below shows the calculation of emissions for 50,000 inhalers that contain 6.68g each of the
propellant HFA 134a.

ITEM NUMBER SOLD PROPELLANT PROPELLANT G W P C O2e TOTA L E M I S S I O N S

P E R U N I T KG (TO N N E S C O2e)

Inhaler 50,000 H FA 134A 0.068 1300 4,420.00

26 GREENHOUSE GAS EMISSIONS CALCULATION GUIDANCE

USING PRIMARY DATA CALCULATING EMISSIONS

■ Emissions from indirect use devices:
1. Products that consume energy indirectly during The calculation for refrigeration is:
use, such as clothing which requires washing and
drying, or products that require refrigeration such [REFRIGER ATION EMISSIONS,
as food, or products that require hot water such TONNES CO2e] =
as detergents.
For the pharmaceutical industry, this relates to
refrigeration of vaccines and biological medicines, and [PRODUCT SOLD]
trips made to patients by medical staff and veterinary staff.
X
CALCULATING EMISSIONS FROM REFRIGERATION [VOLUME PER BOX]
Refrigerated storage should be calculated using
estimations for energy use and storage times, as primary
X
data is difficult to obtain. Energy used for refrigeration at [STORAGE TIME]
wholesalers and pharmacies is estimated to be 40 kWh/
m3 per year, and average storage time at 90 days.
X
[REFRIGERATION ENERGY]
Activity data is the number of boxes of product sold,
and the volume of product box in m3 (volume stored is X
considered to be three times the volume of the product [EMISSIONS FACTOR]/1,000
packaged).

ITEM NUMBER OF VO LU M E P E R S TO R A G E T I M E R E F R I G E R AT I O N EMISSIONS TOTA L

PRODUCT B OX (M3) (Y E A R S) E N E R GY FA C TO R EMISSIONS
B OX E S S O L D (K W H/M3/Y E A R) (KG C O2e/K W H) (TO N N E S C O2e)

Vaccine 1,000 3 0.25 40 0.233 6.99

CALCULATING EMISSIONS
FROM NURSE AND VET TRIPS
The calculation is for nurse and vet trips is:
Injection products and vet trips require a nurse to travel to
someone’s home, except insulin, of which we can assume
50% is self-injected. We can assume a 5km average trip
[NURSE AND VET TRIP
EMISSIONS, TONNES CO2e] =
travelled in Europe, and that a medium sized family car
will be used.
Activity data is the number of injectable products sold [PRODUCT SOLD]
and delivered at patients’ homes, assuming one trip per
product. X
[DISTANCE PER TRIP]
X
[EMISSIONS FACTOR FOR
VEHICLE]/1,000

T R AV E L T Y P E PRODUCTS SOLD D I S TA N C E P E R T R I P EMISSIONS TOTA L E M I S S I O N S

(T R I P S M A D E) (K M) FA C TO R (KG C O2e/ (TO N N E S C O2e)
PA S S E N G E R K M)

Car - average, petrol 1,000 10 0.174 1.74

 CATEGORY GUIDANCE 27

END OF LIFE TREATMENT OF SOLD PRODUCTS CATEGORY 12

Emissions from the waste disposal and the treatment of all products sold by the reporting company at the end of
their life, during the reporting year.

We recommend using the secondary data emissions

factors and average data, as companies should have easy The calculation is:
access to the mass of their products and the packaging
used and can obtain good average-data emissions factors [EMISSIONS FROM END OF LIFE
relating to the mass of the sold products. Companies TREATMENT OF SOLD PRODUC TS,
should collect: TONNES CO2e] =
■ Total mass of packaging from the point of sale by the
reporting company to the end-of-life after consumer
use (e.g., packaging used to transport products through [MASS OF PRODUCT PACKAGING, KG]
to the point of retail and any packaging that is disposed
of prior to the end-of-life of the final product). X
This data may be available in the EU, via information [% BY DISPOSAL METHOD]
submitted as part of the Producer Responsibility
Regulations. X
[EMISSIONS FACTOR FOR DISPOSAL
■ Proportion of this waste being treated by different METHOD, KG CO2e PER KG
methods (e.g., percent landfilled, incinerated, DISPOSED]/1,000
recycled).
■ Typical routes of waste disposal within markets,
including recycling and waste to landfill.

In the example below, we use UK recycling rates.

M A S S (KG) DISPOSAL P E R C E N T (%) EMISSIONS TOTA L E M I S S I O N S

METHOD FA C TO R (TO N N E S C O2e)
(C O2e/KG)

Glass bottles 1,057,763 Landfill 14.30% 0.0090 1.36

1,057,763 Recycling 71.40% 0.0214 16.16

1,057,763 Incineration 14.30% 0.0214 3.24

Plastic label / 235,058 Landfill 14.30% 0.0090 0.3

box 235,058 Recycling 71.40% 0.0214 3.59

235,058 Incineration 14.30% 0.0214 0.72

Cardboard 65,935 Landfill 14.30% 1.0419 9.82

packing 65,935 Recycling 71.40% 0.0214 1.01

65,935 Incineration 14.30% 0.0214 0.2

TOTA L 36.40
28 GREENHOUSE GAS EMISSIONS CALCULATION GUIDANCE

DOWNSTREAM LEASED ASSETS CATEGORY 13

This category is applicable to lessors, i.e. companies that receive payments from lessees. This category includes emissions
from the operation of assets that are owned by the reporting company, acting as lessor, and leased to other entities in
the reporting year that are not already included in scope1 or scope2.
Please refer to category 8.

FRANCHISES CATEGORY 14

This category includes emissions from the operation of franchises not included in scope 1 or scope 2. A franchise is a
business operating under a license to sell or distribute another company’s goods or services within a certain location.
Not relevant for the pharmaceutical industry.

INVESTMENTS CATEGORY 15

This category is not material to pharmaceutical companies. Page 51 of the GHG Protocol’s Corporate Value Chain (Scope
3) Accounting and Reporting Standard says that:

“This category is applicable to investors (i.e., companies There may be certain circumstances through which a
that make an investment with the objective of making pharmaceutical may make a financial investment, for
a profit) and companies that provide financial services. example, through the acquisition of a business, patent or
Category 15 is designed primarily for private financial technology. In most cases the emissions associated with
institutions (e.g., commercial banks), but is also these investments will be captured within the business’
relevant to public financial institutions (e.g., multilateral own scope 1 and 2 emissions in time. However, there may
development banks, export credit agencies, etc.) and be certain situation where this is not the case or where
other entities with investments not included in scope 1 their business does not have operational control – for
and scope 2.” example, if the company makes a minority investment in
a joint venture. The recommendation is these be treated
on a case by case basis to ensure that the associated
emissions are properly captured and distributed between
business partners.
 LIMITATIONS AND AREAS FOR DEVELOPMENT 29

LIMITATIONS
AND AREAS FOR
DEVELOPMENT
LIMITATIONS AREAS FOR DEVELOPMENT
Our approach simplifies a complex process. We think To overcome these limitations, companies from the
this guidance will enable companies to meet the goal of industry can pool data from their work with suppliers
emissions reduction without diverting limited internal and other value chain partners to create a pharma-
resource to many hours of data collection, verification, specific lifecycle emissions database.
and analysis.
This can be done by collecting submissions from
However, this approach does necessarily involve a loss partners who have done their own scope 1 & 2
of accuracy, and companies should be aware of those emissions calculations at a product level, and creating
limitations: emissions factors based on an average for those
products. This process would become more accurate
1. Secondary data can be a blunt tool. The average
over time and would be only for average data emissions
spend-based method calculates emissions by
factors (using mass or other units of measure for
collecting data on the economic value of purchased
products), which is often more accurate, and would
goods and services and multiplying them by the
preserve pricing confidentiality.
relevant Environmentally-Extended Input Output
(EEIO) emission factors.  
EEIO models estimate GHG emissions in supply chain
activities by allocating national GHG emissions to
groups of finished products, based on economic flows
between industry sectors. However, this whole-
economy approach means that many individual
products and processes fall under broad categories,
and products of different monetary value within a
sector cannot be accounted for. In the pharmaceutical
industry, this means that cheaper generic medicines
are lumped together with more expensive
blockbuster drugs. EEIO databases are also often
limited to one country.
2. Focusing effort on material categories risks missing
changes. Materiality analysis should not be done
once, and should also be carried out at the start, and
at the end of the calculation process. It should also
be repeated on an annual basis to consider changes
to the business.
3. Bad primary data can be less reliable than
secondary data. If suppliers do not use robust
emission calculation methods, or if they do not
accurately allocate emissions to the products or
services sold to the reporting company, emissions
can be less accurate than secondary data which is
produced using reliable methods. It is therefore vital
to understand suppliers’ data calculation methods,
and to help them improve if necessary.
30 GREENHOUSE GAS EMISSIONS CALCULATION GUIDANCE

APPENDIX A:
SCOPE 3 CATEGORIES
AND BOUNDARIES
C AT EG O RY C AT EG O RY D E S C R I P T I O N M I N I M U M B O U N DA RY
UPSTREAM
EMISSIONS

1-P U R C H A S E Extraction, production, and transportation of goods All upstream (cradle-to-gate) emissions of
OF GOODS AND
SERVICES and services purchased or acquired by the reporting purchased goods and services
company in the reporting year, not otherwise
included in Categories 2-8

2-C A P I TA L G O O D S Extraction, production, and transportation of capital All upstream (cradle-to-gate) emissions of
goods purchased or acquired by the reporting purchased capital goods
company in the reporting year

3-F U E L- A N D Extraction, production, and transportation of a. For upstream emissions of purchased fuels:
E N E R GY-R E L AT E D
ACTIVITIES fuels and energy purchased or acquired by the All upstream (cradle-to-gate) emissions of
reporting company in the reporting year, not already purchased fuels (from raw material extraction
accounted for in scope 1 or scope 2, including: up to the point of, but excluding combustion)
a. Upstream emissions of purchased fuels b. For upstream emissions of purchased
(extraction, production, and transportation of electricity: All upstream (cradle-to-gate)
fuels consumed by the reporting company) emissions of purchased fuels (from raw
b. Upstream emissions of purchased electricity material extraction up to the point of, but
(extraction, production, and transportation of excluding, combustion by a power generator)
fuels consumed in the generation of electricity, c. For T&D losses: All upstream (cradle-to-gate)
steam, heating, and cooling consumed by the emissions of energy consumed in a T&D
reporting company) system, including emissions from combustion
c. Transmission and distribution (T&D) losses d. For generation of purchased electricity that
(generation of electricity, steam, heating and is sold to end users: Emissions From the
cooling that is consumed (i.e., lost) in a T&D generation of purchased energy
system)-reported by end user
d. Generation of purchased electricity that is sold
to end users (generation of electricity, steam,
heating, and cooling that is purchased by the
reporting company and sold to end users)-
reported by utility company or energy retailer only

4-U P S T R E A M Transportation and distribution of products The scope 1 and scope 2 emissions of
T R A N S P O R TAT I O N
AND purchased by the reporting company in the transportation and distribution providers that
DISTRIBUTION reporting year between a company's tier 1 suppliers occur during use of vehicles and facilities (e.g.,
and its own operations (in vehicles and facilities not from energy use)
owned or controlled by the reporting company) Optional: The life cycle emissions associated
Transportation and distribution services purchased with manufacturing vehicles, facilities, or
by the reporting company in the reporting year, infrastructure
including inbound logistics, outbound logistics
(e.g., of sold products), and transportation and
distribution between a company’s own facilities (in
vehicles and facilities not owned or controlled by
the reporting company)

5-WA S T E Disposal and treatment of waste generated in the The scope 1 and scope 2 emissions of waste
G E N E R AT E D I N
O P E R AT I O N S reporting company’s operations in the reporting management suppliers that occur during disposal
year (in facilities not owned or controlled by the or treatment
reporting company) Optional: Emissions from transportation of waste
 APPENDIX 31

6-B U S I N E S S Transportation of employees for business-related The scope 1 and scope 2 emissions of
T R AV E L
activities during the reporting year (in vehicles not transportation carriers that occur during use of
owned or operated by the reporting company) vehicles (e.g., from energy use)
Optional: The life cycle emissions associated with
manufacturing vehicles or infrastructure

7-E M P LOY E E Transportation of employees between their homes The scope 1 and scope 2 emissions of employees
COMMUTING
and their worksites during the reporting year (in and transportation providers that occur during
vehicles not owned or operated by the reporting use of vehicles (e.g., from energy use)
company) Optional: Emissions from employee teleworking

8-U P S T R E A M Operation of assets leased by the reporting The scope 1 and scope 2 emissions of lessors that
LEASED ASSETS
company (lessee) in the reporting year and not occur during the reporting company’s operation
included in scope 1 and scope 2-reported by lessee of leased assets (e.g., from energy use)
Optional: The life cycle emissions associated with
manufacturing or constructing leased assets

9-D O W N S T R E A M Transportation and distribution of products sold The scope 1 and scope 2 emissions of
T R A N S P O R TAT I O N
AND by the reporting company in the reporting year transportation providers, distributors, and
DISTRIBUTION between the reporting company’s operations and retailers that occur during use of vehicles and
the end consumer (if not paid for by the reporting facilities (e.g., from energy use)
company), including retail and storage (in vehicles Optional: The life cycle emissions associated
and facilities not owned or controlled by the with manufacturing vehicles, facilities, or
reporting company) infrastructure

10-P R O C E S S I N G Processing of intermediate products sold in the The scope 1 and scope 2 emissions of
OF SOLD
PRODUCTS reporting year by downstream companies (e.g., downstream companies that occur during
manufacturers) processing (e.g., from energy use)

11-U S E O F S O L D End use of goods and services sold by the reporting The direct use-phase emissions of sold products
PRODUCTS
company in the reporting year over their expected lifetime (i.e., the scope 1
and scope 2 emission of end users that occur
from the use of: products that directly consume
energy (fuels or electricity) during use; fuels and
feedstocks; and GHGs and products that contain
or form GHGs that are emitted during use)
Optional: The indirect use-phase emissions
of sold products over their expected lifetime
(i.e., emissions from the use of products that
indirectly consume energy (fuels or electricity)
during use)

12-E N D-O F-L I F E Waste disposal and treatment of products sold by The scope 1 and scope 2 emissions of waste
T R E AT M E N T O F
SOLD PRODUCTS the reporting company (in the reporting year) at the management companies that occur during
end of their life disposal or treatment of sold products

13-D O W N S T R E A M Operation of assets owned by the reporting The scope 1 and scope 2 emissions of lessees
LEASED ASSETS
company (lessor) and leased to other entities in the that occur during operation of leased assets (e.g.,
reporting year, not included in scope 1 and scope 2 - from energy use)
reported by lessor Optional: The life cycle emissions associated with
manufacturing or constructing leased assets

14-F R A N C H I S E S Operation of franchises in the reporting year, not The scope 1 and scope 2 emissions of franchisees
included in scope 1 and scope 2- reported by that occur during operation of franchises (e.g.,
franchisor from energy use)
Optional: The life cycle emissions associated with
manufacturing or constructing franchises

15-I N V E S T M E N T S Operation of investments (including equity and debt See the description of category 15 (Investments)
investments and project finance) in the reporting in section 5.5 for the required and optional
year, not included in scope 1 or scope 2 boundaries
32 GREENHOUSE GAS EMISSIONS CALCULATION GUIDANCE

APPENDIX B:
PROVIDERS OF
EMISSIONS FACTORS
ENVIRONMENTAL EXTENDED INPUT-OUTPUT FACTORS

DATA B A S E A N D P R OV I D E R G EO G R A P H Y YEAR

3EID Database, Center for Global Environmental Research, National Japan 2005
Institute for Environmental Studies

EIO-LCA Database, Carnegie Mellon University US 2002

Indirect emissions from supply chain, UK government (DEFRA) UK 2014

USEEIO, US government (EPA) US 2017

ADEME Database French Environmental Agency (ADEME) Fr 2018

PUBLICLY AVAILABLE CONVERSION FACTOR DATABASES

DATA B A S E A N D P R OV I D E R G EO G R A P H Y YEAR

GHG Conversion Factors for Company Reporting, UK government (BEIS) UK 2020

Center for Corporate Climate Leadership GHG Emission Factors Hub, US 2020
US government (EPA)

Facteur de conversion – Base Carbone, ADEME Fr 2020

Emission Factors for Greenhouse Gas Inventories, US government (EPA) US 2020

COMMERCIAL DATABASES
We do not recommend any particular database, the two below are used by PEG participant companies

DATA B A S E A N D P R OV I D E R G EO G R A P H Y

Comprehensive Environmental Data Archive (CEDA) US

Ecoinvent Database Global

Exiobase Global

Gabi Databases Global

SCREENING TOOLS
Screening tools help companies complete a first, rough approximation of their full scope 3 footprint

DATA B A S E A N D P R OV I D E R G EO G R A P H Y

Quantis Scope 3 Evaluator Global

TOPIC AND COUNTRY-SPECIFIC DATABASES can be found at the GHG Protocol’s website.
 APPENDIX 33

APPENDIX C:
UK GOVERNMENT
SUPPLY CHAIN
EMISSIONS FACTORS
The figures below are taken from a larger dataset - Indirect emissions from the supply chain, Department for Environment,
Food & Rural Affairs, 2012 (updated 2014). Emission factors relate to 2011.

C AT EG O RY / S U B C AT EG O RY E M I S S I O N S FA C TO R E M I S S I O N S FA C TO R E M I S S I O N S FA C TO R
US DOLLARS GB POUNDS GB POUNDS
(KG C O2e P E R $U S) (KG C O2e P E R £G B P) (KG C O2e P E R £G B P)
2019 2011 2019

GOODS AND SERVICES

Packaging
Paper 1.858 1.184 1.456
Glass 3.431 2.186 2.688
Plastic 1.507 0.96 1.180

Raw materials
API / Intermediates / Preparations 0.541 0.345 0.424
Bulk chemicals 1.110 0.707 0.869
Excipients 1.792 1.142 1.405
Other chemical products 2.466 1.571 1.932

Research & Development 0.380 0.242 0.297

Information services 0.276 0.176 0.216

General & Administration 0.281 0.179 0.220

C A P I TA L G O O D S

Computer, electronic and optical products 0.645 0.4107 0.505

Electrical equipment 0.973 0.6202 0.763

Machinery and equipment 0.878 0.5591 0.688

Motor vehicles, trailers and semi-trailers 0.969 0.6173 0.759

Construction 0.587 0.3739 0.460

ASSUMPTIONS
6% UK inflation 2014-2017 (Bank of England inflation calculator)
1.276 GBP / USD 5-year average (Yearly Average Rates, OFX.com) as at December 2019.
 www.pscinitiative.org
+44 7794 557 524 (PSCI Secretariat)
[email protected]
@PSCInitiative
PSCI

For more information about the PSCI please contact:

PSCI Secretariat
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[email protected]
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specialising in corporate responsibility and sustainability, with a long
track record in running industry groups.

www.carnstone.com /   @Carnstone

© PSCI October 2020.

Report design: nineteenseventyone.co.uk