Upstream emissions

Upstream emissions are emissions caused by a company's supply chain, from procurement to use.

Upstream emissions are greenhouse gas emissions that occur in the value chain of a product or service before it reaches the organization or relevant process being considered. These emissions, which occur before the actual manufacturing process, encompass all aspects from raw material extraction to processing and transportation for further processing. They play a crucial role in carbon accounting and life cycle assessment (LCA).

The main sources of upstream emissions are diverse and include, for example, the exploration and development of deposits, the manufacturing and extraction of raw materials, as well as the processing of the extracted material. The transportation of these raw materials to processing facilities also generates significant emissions, particularly due to the use of fossil energy sources. In the fossil fuel sector, processes such as flaring and gas venting are major contributors to high emission values.

According to the Greenhouse Gas Protocol (GHG Protocol), upstream emissions fall under the category of indirect emissions, specifically under Scope 3, which includes eight categories of upstream activities. Reducing these emissions offers significant potential for decreasing global greenhouse gas emissions and is further regulated by EU directives. However, identifying and controlling these emissions often poses a challenge, as many sources are not continuously monitored.