Introduction to Scope 3.1 Emissions: Understanding, Measuring & Reducing Impact 

Understanding GHG Scopes: Scope 1, 2, and 3 

Before diving into Scope 3.1 emissions, it’s essential to understand the broader context of greenhouse gas (GHG) emissions and how they’re categorized. 

Within Scope 3, there are 15 distinct categories—Scope 3.1 specifically focuses on purchased goods and services, often representing the largest portion of a company’s carbon footprint. 

Introduction 

When businesses think about their environmental impact, they often focus on what’s directly under their control—like energy use in their offices or emissions from company vehicles. But what about the carbon footprint hiding in the products they buy or the services they use? That’s where Scope 3.1 emissions come in. These emissions, stemming from purchased goods and services, often make up the largest slice of a company’s carbon pie but are frequently overlooked. 

One of the biggest pain points in addressing Scope 3.1 emissions is the lack of awareness about their scale and significance. Many businesses simply aren’t aware that a significant portion of their carbon footprint lies outside their immediate operations. This gap in understanding leads to underreporting, missed opportunities for emissions reduction, and, ultimately, flawed sustainability strategies. In fact, studies show that over 70% of a company’s total emissions can come from its supply chain—yet many organizations fail to include this in their carbon accounting. 

In this guide, we’ll walk you through everything you need to know about Scope 3.1 emissions—what they are, why they matter, how to measure them, and most importantly, how to reduce them. We’ll explain complex topics in simple terms, give you real-world examples, and show you how managing these emissions isn’t just good for the planet—it’s good for business. 

Zeroing in on Scope 3.1 Emissions 

Scope 3.1 emissions focus on the carbon impact of purchased goods and services. This includes emissions from the extraction, production, and transportation of goods and services acquired by a company. For many industries, this category is the largest contributor to their carbon footprint. 

Consider this: If your company purchases large quantities of raw materials or complex products, every stage of production contributes to your Scope 3.1 emissions. Yet, many companies overlook this critical area simply because it lies outside their direct operations. 

A report by CDP highlights that supply chain emissions can be 11.4 times higher than a company’s direct operations. This makes Scope 3.1 a prime target for emission reduction strategies. 

What Are Scope 3.1 Emissions? Breaking Down Purchased Goods & Services' Carbon Impact 

Imagine you’re running a company that sells smartphones. You might track the electricity your office uses (Scope 2) and the fuel for your delivery trucks (Scope 1). But what about the carbon footprint from the mining of rare earth metals, the manufacturing of microchips, or even the packaging materials? Those emissions fall under Scope 3.1. 

Scope 3.1 emissions cover all the greenhouse gases (GHG) produced during the creation of the goods and services a company buys. This could include everything from raw material extraction and processing to manufacturing and shipping. 

[Learn more about Scope 3 emissions in Mavarick’s blog on Scope 3 Emissions: The Complete ESG Reporting Guide.] 

Why Are Scope 3.1 Emissions Critical?

• They’re the largest piece of the puzzle: In many sectors, Scope 3 emissions account for more than 70% of total emissions. For example, in the fashion industry, 80% of a brand's carbon footprint often comes from production and material sourcing. 

• They’re out of direct sight—but not out of responsibility: Even though these emissions happen outside your company walls, they’re still part of your carbon footprint. That’s why investors and regulators increasingly expect businesses to include them in sustainability reports. 

• They hold the key to real impact: Reducing Scope 3.1 emissions means working with suppliers and rethinking procurement strategies—this is where businesses can make significant changes that ripple through entire supply chains. 

For a real-world example, check out Knorr-Bremse’s approach to Scope 3.1 decarbonization. 

The Awareness Gap: Why Businesses Overlook Scope 3.1 Emissions 

Lack of Awareness About Scope 3.1 Emissions and Their Significance 

If you ask most companies about their carbon footprint, they might talk about reducing office energy use or switching to electric company cars. But ask them about Scope 3.1 emissions, and you might get blank stares. Why? Because many businesses simply aren’t aware of how big an impact their purchasing decisions can have. 

1. Complexity in Tracking 

Supply chains can be messy. A single product might involve dozens of suppliers spread across multiple countries, each with its own energy sources and manufacturing processes. Tracking the emissions from all these layers can feel overwhelming. According to the CDP, only 40% of companies currently track emissions from their supply chains. 

2. Lack of Standardized Data 

Unlike direct emissions, which can be measured with meters and bills, Scope 3.1 emissions often rely on data from suppliers—who might not always track or report their own carbon footprints. This creates data gaps, making it tricky for companies to get accurate numbers. 

3. Misunderstood Responsibility 

Many businesses assume that because these emissions happen outside their operations, they aren’t their problem. But stakeholders—especially investors—are demanding more transparency. Plus, regulations like the EU’s CSRD (Corporate Sustainability Reporting Directive) are making it mandatory for companies to disclose their full carbon impact, including supply chain emissions. 

The result? Companies that ignore Scope 3.1 emissions risk falling behind in sustainability efforts, losing investor trust, and facing regulatory fines. 

The Role of Sustainable Procurement in Reducing Scope 3.1 Emissions 

Sustainable procurement plays a pivotal role in tackling Scope 3.1 emissions. By rethinking purchasing decisions and prioritizing suppliers with strong environmental practices, companies can reduce the carbon impact of their supply chains. 

Strategies for Sustainable Procurement: 

• Supplier Selection: Opt for suppliers committed to renewable energy, efficient processes, and minimal waste. 

• Life Cycle Analysis: Assess the environmental impact of goods and services across their entire life cycle—from raw material extraction to end-of-life disposal. 

• Collaboration: Engage suppliers in sustainability initiatives, encouraging joint efforts to reduce emissions. 

Mavarick’s blog on Supplier Engagement Strategies offers deeper insights into building sustainable supplier relationships.] 

Supplier Engagement: How to Work with Your Supply Chain to Reduce Emissions 

Building strong relationships with suppliers is key to effective Scope 3.1 management. Without supplier buy-in, it’s nearly impossible to gather accurate data or implement meaningful changes. 

Best Practices for Supplier Engagement: 

• Clear Communication: Set clear sustainability expectations and provide resources for suppliers to meet them. 

• Training Programs: Equip suppliers with knowledge and tools to improve their own emissions tracking and reduction strategies. 

• Incentives: Offer long-term contracts or financial incentives for suppliers who actively work to reduce their emissions. 

Best Practices for Scope 3.1 Emission Calculation 

Accurate measurement of Scope 3.1 emissions requires a mix of direct data collection and reliable estimation methods. 

1. Start with the Cost of Purchased Goods and Services 

This approach estimates emissions based on the financial value of purchased items and average industry emission factors. While less precise, it offers a solid starting point when supplier data is unavailable. 

2. Use Industry-Specific Emission Factors 

Applying tailored emission factors based on industry data can improve accuracy. For instance, the carbon footprint of steel production differs significantly from that of textiles. 

3. Prioritize Direct Data from Suppliers 

Whenever possible, collect primary data directly from suppliers. This method delivers the most accurate results and encourages suppliers to improve their own reporting practices. 

4. Leverage Technology 

Use carbon accounting software like Mavarick to streamline data collection, enhance reporting accuracy, and identify hotspots for emissions reduction. 

Conclusion: Turning Awareness into Action 

Scope 3.1 emissions are no longer something businesses can afford to ignore. They represent both a challenge and an opportunity—one where forward-thinking companies can lead the way in sustainability. 

By understanding the true impact of purchased goods and services, businesses can make smarter decisions, build stronger supply chains, and significantly reduce their environmental footprint. 

Ready to tackle Scope 3.1 emissions head-on?