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Energy purchases & losses (Scope 3, Category 3)

Energy purchases & losses (Scope 3, Category 3)

How to configure emission factors for Scope 3, Category 3 (fuel- and energy-related activities), including upstream factors, transmission & distribution losses, and lifecycle factors.

Last updated on December 31, 2025

Purpose of this article

This article explains how to fill in emission factors in the Energy Purchases & Losses tab in Emission Factor settings in Scaler.

It covers Scope 3, Category 3 emissions only and explains how to use the various tables.

What Scope 3, Category 3 covers in Scaler

Scope 3, Category 3 includes fuel- and energy-related emissions that occur upstream of energy use and from transmission and distribution (T&D) losses, where those emissions are not already included in Scope 1 or Scope 2.

In Scaler, this category applies only to landlord-controlled energy consumption.

Meters under tenant control are excluded.

Where to configure energy purchases & losses

Navigation path:

Data Collection Portal → Portfolio → Emission factors → Energy Purchases & Losses

This tab contains three related tables, which must be used correctly to avoid double counting or undercounting emissions.

How Scaler structures Category 3 inputs

Overview of the three tables

The Energy purchases & losses tab contains:

  1. Category 3A & 3B — Upstream emission factors

      2. (well-to-tank / upstream supply chain emissions)

  1. Category 3C — Transmission & distribution loss (%)
  1. Category 3C — Lifecycle emission factors for lost energy

These tables are not additive by default.

How you use them depends on the type of dataset you want to calculate.

Which tables should I fill in? (Decision rules)

Rule 1: If you have upstream factors for Category 3A & 3B

If you have upstream emission factors for Category 3A and 3B, you can complete the first table.

This is the standard case for datasets such as:

  • DEFRA
  • CO₂emissiefactoren.nl
  • EPA upstream factors
  • Supplier-provided upstream factors

In this approach, Category 3C is not calculated explicitly, which is expected for upstream-only datasets.

Rule 2: Category 3C is all-or-nothing

If you choose to calculate Category 3C explicitly, you must complete both table two and three:

  • Category 3C: T&D loss %
  • Category 3C: Lifecycle emission factors

There is no valid scenario where the loss percentage table is used on its own.

A loss percentage is only a multiplier.

It has no emissions meaning without a lifecycle emission factor.

Before you start: confirm meter eligibility

Confirm energy subcategories

Ensure meters are correctly classified (e.g. electricity, fuels, district heating/cooling), as this determines which rows appear in the tables.

Landlord-controlled meters only

Only meters configured with landlord-controlled area types are included in Scope 3, Category 3 calculations.

Meters under tenant control are excluded.

In the Scaler Platform

  1. Go to Data Collection Portal → Portfolio → Asset List → edit asset → Meters & Consumption → Energy Meters
  1. In the table, verify that all your sources of energy consumption are recorded as meters. Verify all Meter Details are correct, specifically Subcategory.
  1. Confirm the meter is Landlord Controlled where appropriate (tenant-controlled meters are excluded from Category 3 calculations).

In the Scaler Spreadsheet

  1. Download the Scaler Spreadsheet for your assets with the Energy Meter sheet.
  1. Verify meter details are correct and add new meters where necessary.
  1. Upload the updated spreadsheet back into Scaler.

Rule 1: How to fill in Category 3A & 3B upstream emission factors

When this applies

Use this approach when your dataset provides upstream (well-to-tank) emission factors.

In the Scaler Platform

  1. Go to Data Collection Portal → Portfolio → Emission Factors → Energy Purchases & Losses
  1. Locate the first table: 3A & 3B Upstream Emission Factors electricity + fuels + DHC. Scaler automatically populates a row for each Country × Subcategory where meters exist.
  1. Enter the emission factor (per year) in kgCO₂e/kWh.
  1. Enter the Reference (e.g., “UK DEFRA 2024”) for record-keeping and audit purposes.

Typical sources

UK (DEFRA): Upstream electricity and gas factors provided directly
Energy type
DEFRA sheet to use
Notes
Fuels (e.g., natural gas, gas oil, LPG)
Well-to-Tank: Fuels
Do not use combustion EFs for Category 3.
Electricity
Well-to-Tank: UK Electricity
Upstream emissions before generation.
District Heat & Steam
Well-to-Tank: Heat & Steam
Includes upstream processes prior to heat/steam delivery.
  • Netherlands (CO₂emissiefactoren.nl): Upstream factors published annually
  • US (EPA): Upstream factors derived from EPA datasets
  • Supplier‑specific upstream data

Rule 2: How to fill in Category 3C (explicit calculation)

When this applies

Use this approach if your dataset requires explicit T&D and lifecycle modelling.

Category 3C: Transmission & distribution loss (%)

In the Scaler Platform

  1. Go to Data Collection Portal → Portfolio → Emission Factors → Energy Purchases & Losses
  1. Locate the second table: 3C Percentage Loss. Scaler automatically populates a row for each Country × Subcategory where meters exist.
  1. Enter loss percentages.
    1. E.g., UK electricity T&D loss of 5% based on DEFRA guidance. This should be entered as 5 in Scaler.
  1. Enter the Reference for record-keeping and audit purposes.

Typical sources

World Bank transmission & distribution (T&D) loss rates by country

Country-level T&D loss percentages can be sourced from the World Bank Open Data, using the indicator

“Electric power transmission and distribution losses (% of output)” (EG.ELC.LOSS.ZS).

This metric represents the share of electricity lost during transmission and distribution relative to total electricity generation.

The data is primarily sourced from the International Energy Agency (IEA) and harmonised for international comparison.

Use this value when you need a country-level average T&D loss percentage and no more granular national dataset is available.

  • National grid operators

Category 3C: Lifecycle emission factors

Lifecycle factors must include all stages, including:

  • Upstream supply
  • Combustion
  • Distribution losses

Do not use upstream-only factors here.

This table provides the emission factor that the loss percentage is multiplied by.

In the Scaler Platform

  1. Go to Data Collection Portal → Portfolio → Emission Factors → Energy Purchases & Losses
  1. Locate the third table: 3C Lifecycle Emission Factors. Scaler automatically populates a row for each Country × Subcategory where meters exist.
  1. For each Country × Energy Type row, enter the full lifecycle EF in kgCO₂e/kWh.
  1. Enter the Reference for record-keeping and audit purposes.

Typical sources and what to fill in

Country / Source
Fill A & B
Fill C – % loss
Fill C – lifecycle
UK – DEFRA
✅
❌
❌
Netherlands – CO₂emissiefactoren.nl
✅
❌
❌
US – EPA upstream factors
✅
❌
❌
Supplier‑specific upstream data
✅
❌
❌
ecoinvent / GaBi
⚠️ (derived)
✅
✅
Grid factor only (generation‑only)
⚠️
✅
✅

NL-based asset using CO₂emissiefactoren.nl

Expand for guidance
  • Provides combustion and upstream electricity factors

Users should complete:

  • Table A & B

Users should not complete:

  • Table C – T&D loss
  • Table C – lifecycle

Reason:

Upstream factors already include supply chain impacts and implicitly account for losses.

US-based assets using EPA

Expand for guidance

The US EPA does not primarily publish lifecycle electricity factors for corporate inventories.

Instead, it provides pre-split emission factors, similar in spirit to DEFRA, but distributed across different tools.

Main EPA sources used in practice

EPA source
What it provides
Boundary
eGRID
Electricity generation emission factors
Combustion only
EPA Scope 3 Technical Guidance
Upstream fuel & electricity factors
Well-to-tank (upstream)
EPA Center for Corporate Climate Leadership
Scope-aligned methods
Explicit Category 3 logic
World Bank (often paired)
T&D loss rates
Percentage loss

Critical point

EPA expects Scope 3 Category 3 to be calculated using upstream factors, not lifecycle totals.

What a typical US user actually has

For most US real estate and corporate users, the available data looks like this:

  • Electricity consumption (kWh)
  • eGRID subregion or national grid
  • Upstream electricity factors (from EPA guidance or secondary databases)
  • No lifecycle electricity factor

This is the normal and expected US case.

How US users should complete the Category 3 tables in Scaler

Typical / recommended US EPA pathway (≈90% of users)

This mirrors the DEFRA and Dutch official approaches.

Users should complete:

  • ✅ Table A & B (upstream fuels & electricity)

Users should not complete:

  • ❌ Table C – T&D loss %
  • ❌ Table C – lifecycle electricity factor

Why this is correct

  • EPA upstream electricity factors are already designed for Scope 3 Category 3
  • Transmission & distribution losses are either:
    • embedded in upstream estimates, or
    • not expected to be calculated separately by end users

➡️ Result: a correct Category 3 total with no double counting.

⚠️ Advanced / edge US case (rare)

Some users may only have:

  • eGRID generation factor (Scope 2)
  • A separate T&D loss rate
  • A separate lifecycle electricity factor (e.g. ecoinvent)

This is uncommon outside LCA-heavy organisations.

Only in this case should users complete:

  • Table C – T&D loss %
  • Table C – lifecycle electricity factor

Scaler would then derive upstream emissions internally, following GHG Protocol fallback logic.

US summary table

United States (EPA): which tables to complete

Scenario
Tables to complete
EPA upstream electricity & fuel factors
A & B only
Supplier-specific upstream data
A & B only
eGRID only + lifecycle dataset
A & B + C (loss + lifecycle)
eGRID only, no upstream data
⚠️ Not recommended
Most US users should not enter Category 3C lifecycle or loss data.

ecoinvent / GaBi (LCA-heavy users)

Expand for guidance

These users typically have:

  • Full lifecycle electricity factor
  • Possibly a separate T&D loss rate

Users should complete:

  • Table C – T&D loss
  • Table C – lifecycle

Scaler derives internally:

  • Upstream electricity for Tables A & B

      • (lifecycle − combustion − losses)

This matches GHG Protocol formulas exactly.

Units and conversions

Required unit

All emission factors must be entered in:

  • kgCO₂e/kWh

Common conversions

Original Unit
Convert To
Conversion
gCO₂e/kWh
kgCO₂e/kWh
÷ 1000
kgCO₂e/MWh
kgCO₂e/kWh
÷ 1000
tCO₂e/MWh
kgCO₂e/kWh
× 1000
MJ
kWh
÷ 3.6 (then apply EF)

(Use verified conversion factors and document sources in the Reference field.)

Where these emissions appear

Once entered, Scaler automatically calculates Scope 3 Category 3 emissions and displays them in:

Dashboards

Data Collection Portal → Company → Performance → Scope 3 → Category 3A, 3B, 3C

Notion image
 

Data Export Fields

  • scope_3_category_3a_purchased_fuels_upstream_emissions_kgco2e
  • scope_3_category_3b_electricity_heat_cold_upstream_emissions_kgco2e
  • scope_3_category_3c_fuels_transmission_distribution_losses_emissions_kgco2e
  • scope_3_category_3c_electricity_dhc_transmission_distribution_losses_emissions_kgco2e

Best practices

  • Always document sources in the Reference field
  • Avoid mixing datasets with different system boundaries
  • When in doubt, default to upstream-only datasets
 
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