Measuring scope 3 emissions: a framework for organisations

Why is this important? 

To decarbonise Leeds and the wider region, organisations need to be able to understand where all their emissions are coming from.  This is important for organisations of any size. Currently 70-90% of an organisation’s total emissions are not accounted for because they are classed as ‘Scope 3’ (indirect emissions from supply chains that are out of an organisation’s immediate control). Reporting of these is currently voluntary in the UK, but mandatory disclosure is being considered under the future UK Sustainability Disclosure Standards (SDS) so it will become increasingly important in ESG reporting and supply-chain management. 

A significant issue with calculating Scope 3 emissions is that here is no standardised approach for measuring, managing and reducing these emissions. Now a project for Leeds Climate Commission, funded by West Yorkshire Combined Authority, has identified approaches that can be applied using a framework developed in consultation with Leeds Anchors Network. Findings from the project will inform how Leeds can ensure a more sustainable supply chain and are likely to be an important area of work for the Resilient City strand of Leeds Ambitions, which the Leeds Climate Commission convenes. 

What are Scope 3 emissions? 

Scope 3 emissions are notoriously difficult to monitor. They include ‘upstream’ emissions (before a company makes a product) from purchased goods and services, as well as capital goods, fuel and energy-related activities, transportation and distribution, waste generated, business travel, employee commuting, and leased assets.  

Scope 3 emissions also include ‘downstream’ emissions (from after a product leaves a company’s control) such as processing and use of sold products, their end-of-life treatment, franchises, investments, and further transportation and distribution emissions. 

A substantial share of West Yorkshire’s emissions come from consumption categories such as goods, construction, food systems, transport and services, meaning most emissions originate outside the region through global supply chains. 

Challenges with calculating Scope 3 

Under the Procurement Act, central government contracts over £5 million require suppliers to submit Carbon Reduction Plans and align procurement with national net zero goals. Guidelines exist in the GHG Protocol, but there is no standard methodology for Scope 3 data collection, measuring or reporting. This creates risk, undermining the credibility of carbon reporting in the UK and raises concerns about transparency and robustness. 

Traditionally, spend has been used as a proxy but this gives a rough and incomplete picture. One of the Leeds Anchors, the University of Leeds Procurement Team, is currently looking at carbon measurement solutions that decouple spend from carbon and capture supplier-specific improvements that offer more accurate carbon measurements. 

Implications for Leeds and the region 

Leeds Anchor Network brings together 13 of the city’s largest employers across local government, health, culture, education and utilities. Anchors come together to focus on areas where they can make a key difference for the people of Leeds as employers, through their procurement, their environmental impact, through their core services, and as civic partners. 

Leeds Anchors are: British Library; Department of Health & Social Care; University of Leeds; Leeds Beckett University; Leeds City College; Leeds City Council; Leeds Community Healthcare NHS Trust; Leeds Teaching Hospitals NHS Trust; Leeds Trinity University; Leeds & York Partnership NHS Foundation Trust; Northern Gas Networks; Northern Powergrid; and Royal Armouries. 

The implications for Leeds Anchors Network are: 

• The majority of emissions relevant to the region are in supply chains 

• Regional decarbonisation depends on shared procurement approaches 

• Anchors have significant collective influence, and coordinated expectations can drive faster and more consistent decarbonisation across local economy.  

• Decarbonising also strengthens investor confidence, improves efficiency, and reduces long term risk associated with climate change. 

A workshop with the Climate and Procurement Sub-Groups of several of the Leeds Anchors Network members was convened by Leeds Climate Commission in partnership with the Climate Evidence Unit in February 2026. Bringing both climate and procurement specialists was vital to ensure that cross-organisational thinking is embedded across sustainable supply chain practices. The workshop resulted in a baseline report recommending a best practice framework and collective next steps, together with a review of tools and methods. 

Recommendations 

It is recommended that Leeds Anchors Network members prioritise Scope 3 reductions as this is where the biggest impact can be made. Adopting a common dataset is fundamental to achieving this. Recommendations are both practical for Leeds and transferable across West Yorkshire and the wider region. 

The report provides a concise, scalable framework to help institutions and organisations of all sizes understand and reduce Scope 3 emissions. It also outlines key challenges, such as inconsistent methodologies, limited data availability and varying levels of supplier readiness, and how these shape local supply-chain management. 

Specific recommendations include establishing a Scope 3 working group straddling procurement and sustainability; and Leeds Anchors Network establishing and adhering to aligned minimum standards and a standardised engagement process for ‘low value’ contracts. The latter has the potential to streamline supplier engagement across Leeds’ employers and would increase SMEs’ accessibility to tenders, as well as enhancing social value and regional procurement.  

Next steps 

Early priorities centre on supplier engagement, minimum procurement standards, aligned language and expectations, and shared principles for Scope 3 action. These collectively support Leeds Inclusive Growth and the West Yorkshire Combined Authority’s Green Economy strategies. These steps can also align with and complement programmes such as the emerging Supply Chain Directory based in West Yorkshire, the University of Leeds Climate Evidence Unit’s health‑sector Scope 3 programme, and social‑value‑based frameworks exploring wider co‑benefits and emissions reduction in procurement.  

A near‑term action is to co‑define, together with the Commission and Anchor Institutions, what exemplary sustainable and circular supply chains look like for Leeds. This includes articulating shared principles, identifying early demonstration projects, and developing an evidence plan capturing emissions reduction, social value, and local economic benefits.  

The ambition is for Leeds to set a UK best‑practice model for sustainable and circular supply chains, which can be scaled across West Yorkshire and the wider Yorkshire and Humber region.  

Download the report