Scope 3 Emissions: A Complete Guide for Food Businesses
Food systems are responsible for one-third of global greenhouse gas emissions. For restaurants, caterers, educational institutions, and hotels, most of that impact happens far beyond the kitchen. Understanding (and reporting) Scope 1, 2, and 3 emissions is no longer optional. It’s required by regulation, expected by clients, and critical for climate action.
With Klimato, food businesses can measure, track, and report Scope 1–3 emissions automatically—ingredient by ingredient, supplier by supplier.
What Are Scope 1, 2, and 3 Emissions?
Scope 1, 2, and 3 emissions are defined by the Greenhouse Gas Protocol as a way to categorize all greenhouse gas emissions a company is responsible for—from direct operations through to the full supply chain.
Scope 1
Direct emissions, like the fuel you burn on site or in vehicles you own (e.g. gas ovens, delivery vans, refrigerant leakage).
Scope 2
Indirect emissions from purchased energy: electricity, heating, or cooling you buy.
Scope 3
Value chain emissions (or, in simpler terms, everything else), from agricultural inputs and packaging to transport, waste, and outsourced services.
![[WIP] Scope 1, 2, & 3 Concentric](https://klimato.com/hubfs/%5BWIP%5D%20Scope%201%2c%202%2c%20%26%203%20Concentric.svg "[WIP] Scope 1, 2, & 3 Concentric")
*Please note that the diagram is based on the Greenhouse Gas Protocol, and that the list of Scope 3 categories shows a selection of emission categories most relevant to food businesses.
Scope 3 Category 1: Where Food Emissions Sit
The GHG Protocol divides Scope 3 emissions into 15 categories. For food businesses, Category 1—purchased goods and services—is almost always the dominant one. Every ingredient on a menu, every product on a supplier invoice, every consumable in a kitchen carries an embedded carbon footprint.
Quantifying Category 1 accurately requires ingredient-level emission factors, not spend-based approximations. A beef dish and a vegetable dish might cost the same but carry very different carbon footprints—spend data alone cannot tell them apart.
Klimato maps ingredient-level data from your procurement systems, POS and recipe data to a database of verified emission factors, producing a traceable Category 1 calculation that holds up under CSRD's double materiality assessment.
Scope 1–3 in the
Context of Net Zero
To reach net zero, food businesses must reduce emissions across all scopes. Cutting Scope 1 and 2 with electrification and renewables is only the start; the real shift comes from tackling Scope 3 with suppliers, menus, packaging, and waste. Read more here.
What CSRD requires from food companies on Scope 3
• Disclosure of all material Scope 3 categories (Category 1 is typically material for food operators)
• Explanation of the methodology used to calculate Category 1 emissions
• Year-on-year tracking to show progress against targets
• Alignment with GHG Protocol Corporate Standard as the reporting framework
HOW TO REPORT SCOPE 1, 2, AND 3 EMISSIONS
Scope 3 reporting is the most data-intensive part of the process for food businesses, because it requires ingredient
and supplier-level data rather than just operational metrics.
1. Baseline your emissions: Map all Scope 1–3 sources using procurement and energy data.
2. Find your hotspots: Identify high-impact ingredients (meat, dairy, imported products).
3. Engage suppliers: Request emissions data or use lifecycle averages.
4. Take action: Electrify kitchens, optimize transport, reduce waste, and adjust menus.
5. Report and disclose: Prepare CSRD- and ESG-compliant reports for clients, regulators, and investors.
FAQ ABOUT SCOPE 1, 2, and 3 emissions
WHAT ARE SCOPE 1, 2, AND 3 EMISSIONS?
Scope 1, 2, and 3 emissions are the three categories used to measure a company's total greenhouse gas impact under the GHG Protocol. Scope 1 covers direct emissions from owned or controlled sources. Scope 2 covers indirect emissions from purchased energy such as electricity or heating. Scope 3 covers all other indirect emissions across the value chain—for food businesses, this includes agricultural production, ingredient sourcing, packaging, transport, and waste.
WHICH SCOPE IS THE LARGEST FOR FOOD BUSINESSES?
Scope 3, by a significant margin. In most food businesses, Scope 3 accounts for around 80–95% of total emissions, driven primarily by ingredient procurement and agricultural production. This means that reducing Scope 1 and 2 emissions—through electrification or renewable energy, for example—addresses only a small fraction of total climate impact. The majority of the opportunity for food businesses lies in Scope 3.
Is Scope 3 reporting mandatory in the UK?
Scope 3 reporting is not yet universally mandatory in the UK, but it is increasingly required in practice. Large companies reporting under the UK's Streamlined Energy and Carbon Reporting (SECR) framework are encouraged to include Scope 3 data. Companies operating in or trading with the EU face mandatory Scope 3 disclosure under CSRD. Beyond regulation, corporate procurement requirements and SBTi commitments are also driving Scope 3 reporting as a de facto standard for food businesses working with large clients.
Do food businesses need to report Scope 3 under CSRD?
Yes. CSRD requires companies in scope to report Scope 1, 2, and 3 emissions under ESRS E1. For food businesses, Scope 3 will almost always be material under CSRD's double materiality assessment—because ingredient sourcing and supply chain activity represent both a significant environmental impact and a potential financial risk. Companies cannot exclude Scope 3 on the basis of complexity. For a full breakdown of CSRD obligations for food businesses, see our CSRD guide →.
How does Klimato help with Scope 1, 2, and 3 reporting?
Klimato automates Scope 1–3 calculation and reporting for food businesses—connecting procurement, recipe, and operational data to produce emissions tracking that is traceable, GHG Protocol-aligned, and CSRD-ready. Rather than aggregating emissions at a high level, Klimato works ingredient by ingredient and supplier by supplier, giving food businesses the granularity they need for credible reporting and meaningful reduction targets.
Ready to turn understanding
into action?
Knowing your Scope 1, 2, and 3 emissions is the first step. The next is measuring them accurately and communicating them with confidence. Explore how Klimato’s reports make carbon tracking simple, credible, and CSRD-ready.