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Gate-to-grave decarbonisation: downstream emissions

Identifying downstream Scope 3 emissions hotspots to reduce risks and drive innovation across the supply chain

Value chain: downstream

Consumer durables manufacturing

Publication date: 21 Jan 2025

By Purvi Zaveri

AT A GLANCE

  • Downstream Scope 3 emissions, accounting for up to 98% of total emissions, pose significant financial and regulatory risks.

  • These emissions require action under frameworks like the "gate-to-grave" approach, focusing on post-sale accountability.

  • Firms aligning with these standards can strengthen competitiveness and mitigate long-term supply chain vulnerabilities.

Downstream Scope 3 emissions, encompassing those produced during product use and disposal, pose significant financial risks to the consumer durables manufacturing industry due to their impact on long-term competitiveness and compliance with emerging regulatory frameworks. The "gate-to-grave" framework emphasises emissions from product sale to end-of-life, addressing a critical and often overlooked segment of the value chain. These emissions can constitute up to 98% of total emissions in some sectors, complicating measurement and reduction efforts. Firms must adopt this framework to identify emissions hotspots and drive innovative decarbonisation solutions.

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Measuring downstream emissions

Measuring downstream Scope 3 emissions is hindered by inconsistent methodologies and limited data integration, complicating the identification of emissions hotspots. Few entities disclose these emissions due to reliance on estimations and engagement with smaller suppliers and downstream actors, many of whom lack adequate reporting systems. While the GHG Protocol offers guidance, its first-tier focus leaves data gaps for downstream phases, highlighting the need for improved methodologies. 

Stakeholder collaboration

Collaboration with downstream stakeholders is essential for promoting sustainable practices, improving data quality and aligning decarbonisation efforts. Integrated approaches, such as combining EEIO models for upstream emissions with process-based analysis for downstream activities, help identify decarbonisation opportunities. However limited research and the difficulty of applying value chain concepts to real-world supply chains expose significant methodological gaps.

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Circular economy strategies

Circular economy principles such as extending product lifecycles and end-of-life recovery reduce emissions and environmental impacts in downstream value chains. Lifecycle assessments and assumptions about consumer behaviour often drive downstream emissions but reliance on secondary data like Ecoinvent weakens precision. Production-based models which account for emissions during energy-intensive use phases are key to embedding lifecycle strategies into reduction plans.

Limitation of calculations

Downstream reporting needs advanced tools and alignment with CSRD and GHG Protocol standards. Integrating data-driven tools is vital for precise emissions inventories, but reliance on estimates and double counting remain issues. Limited research on double counting complicates efforts to achieve accurate supply chain emissions data.

FURTHER READING