S3. Category 2: Capital Goods

Understanding Scope 3 Category 2

Capital goods are physical assets with an extended life that your organization uses to manufacture products, provide services, or sell, store, and deliver merchandise. Unlike Category 1 (purchased goods and services), capital goods are amortized over their useful life rather than consumed immediately. According to the GHG Protocol Scope 3 Standard, Category 2 includes emissions from:

Buildings and facilities: Offices, warehouses, manufacturing plants, retail stores
Machinery and equipment: Production lines, HVAC systems, generators, industrial equipment
Vehicles: Company fleet vehicles (if purchased, not leased)
IT infrastructure: Servers, data centers, computer equipment, networking hardware
Furniture and fixtures: Office furniture, shelving, storage systems

┌─────────────────────────────────────────────────────────────────────────────┐
│                      SCOPE 3 CATEGORY 2: Capital Goods                       │
├─────────────────────┬─────────────────────┬─────────────────────────────────┤
│  Buildings &        │  Machinery &        │  IT & Other                     │
│  Facilities         │  Equipment          │  Assets                         │
├─────────────────────┼─────────────────────┼─────────────────────────────────┤
│  • Office buildings │  • Production lines │  • Servers & data centers       │
│  • Warehouses       │  • HVAC systems     │  • Computer equipment           │
│  • Manufacturing    │  • Generators       │  • Furniture & fixtures         │
│  • Retail stores    │  • Fleet vehicles   │  • Networking hardware          │
└─────────────────────┴─────────────────────┴─────────────────────────────────┘

Category 1 vs Category 2: What’s the Difference?

Aspect	Category 1 (Purchased Goods)	Category 2 (Capital Goods)
Type	Operational expenditure (OPEX)	Capital expenditure (CAPEX)
Consumption	Consumed/used within reporting year	Multi-year useful life
Examples	Raw materials, services, supplies	Buildings, machinery, vehicles
Accounting	Full emissions in year of purchase	Can be amortized over useful life
Dcycle field	`expense_type: "opex"`	`expense_type: "capex"`

Prerequisites

Before starting, ensure you have:

Dcycle API credentials (get them here)
Capital asset data: fixed asset register, procurement records, or investment records
Understanding of your capital asset categories and their acquisition costs or physical specifications

Using the Dcycle App?You can also manage capital goods through our web interface:

Upload purchases manually (ES) - Set expense type to “CAPEX”
Upload purchases automatically (ES) - Bulk import from fixed asset register

Data Map: Capital Goods Requirements Overview

Before diving into the calculations, here’s a complete overview of the data you’ll need:

┌─────────────────────────────────────────────────────────────────────────────────────────┐
│                        CAPITAL GOODS DATA REQUIREMENTS                                   │
├─────────────────────────────────────────────────────────────────────────────────────────┤
│                                                                                         │
│  ┌─────────────────────────────────────────────────────────────────────────────────┐   │
│  │ CAPITAL GOODS DATA (Steps 4.2.1 - 4.2.3)                                        │   │
│  ├─────────────────────────────────────────────────────────────────────────────────┤   │
│  │                                                                                 │   │
│  │  Spend-Based               Activity-Based            Supplier-Specific         │   │
│  │  ────────────────────      ────────────────          ─────────────────         │   │
│  │  • quantity (€)            • quantity (kg, units)    • quantity                │   │
│  │  • unit_id (€)             • unit_id (kg, m², etc.)  • unit_id                 │   │
│  │  • sector                  • product_name            • custom_emission_        │   │
│  │  • product_name            • sector                    factor_id               │   │
│  │  • country                 • country                 • supplier_id             │   │
│  │  • purchase_date           • purchase_date           • purchase_date           │   │
│  │  • expense_type: "capex"   • expense_type: "capex"   • expense_type: "capex"   │   │
│  │                                                                                 │   │
│  └─────────────────────────────────────────────────────────────────────────────────┘   │
│                                                                                         │
│  ┌─────────────────────────────────────────────────────────────────────────────────┐   │
│  │ KEY DIFFERENCE FROM CATEGORY 1                                                  │   │
│  ├─────────────────────────────────────────────────────────────────────────────────┤   │
│  │                                                                                 │   │
│  │  ⚠️  Set expense_type = "capex" (not "opex")                                    │   │
│  │                                                                                 │   │
│  │  This field determines whether emissions are classified as:                    │   │
│  │  • Category 1 (Purchased goods & services) → expense_type: "opex"              │   │
│  │  • Category 2 (Capital goods) → expense_type: "capex"                          │   │
│  │                                                                                 │   │
│  └─────────────────────────────────────────────────────────────────────────────────┘   │
│                                                                                         │
└─────────────────────────────────────────────────────────────────────────────────────────┘

Calculation Methods

Capital goods use the same calculation methods as purchased goods, with identical emission factor sources:

Spend-Based Method
Activity-Based Method
Supplier-Specific Method

The spend-based method uses economic input-output (EEIO) emission factors based on the monetary value of capital purchases.

Acquisition Cost (€) → Sector/Product Category → Exiobase EF → CO₂e
          ↓                     ↓                      ↓           ↓
   Invoice/PO amount      Product mapping         kg CO₂e/€    Total emissions

Key characteristics:

Uses Exiobase 3.8.2 input-output emission factors
Best for buildings, infrastructure, and mixed assets
Lower accuracy but easiest to implement
Use when you only have financial data

Emission Factor Sources - Spend-Based

For spend-based calculations, Dcycle uses emission factors from:

Exiobase 3.8.2 - Multi-Regional Environmentally Extended Supply-Use Tables
Covers construction, manufacturing, and equipment sectors
Source: Exiobase

Common capital goods sectors:

Construction - Buildings and infrastructure
Manufacture of machinery and equipment n.e.c. - Industrial equipment
Manufacture of motor vehicles - Fleet vehicles
Manufacture of computer, electronic and optical products - IT equipment

Calculation Details - Spend-Based

Spend-based emissions are calculated as:CO₂e = Acquisition Cost (€) × Economic Intensity Factor (kg CO₂e/€)Where:

Acquisition Cost: Total purchase price including installation/commissioning
Economic Intensity Factor: Exiobase emission factor for the asset category

Example (Office Building):

€2,000,000 × 0.35 kg CO₂e/€ = 700,000 kg CO₂e (700 tCO₂e)

Example (Industrial Machinery):

€500,000 × 0.45 kg CO₂e/€ = 225,000 kg CO₂e (225 tCO₂e)

The activity-based method uses physical quantities and product-specific emission factors.

Quantity (kg, m², units) → Product Category → Activity-Based EF → CO₂e
          ↓                      ↓                    ↓              ↓
   Physical specs          Asset type           kg CO₂e/unit    Total emissions

Key characteristics:

Uses physical quantities (weight, area, units)
More accurate than spend-based
Ideal for standardized equipment
Requires detailed asset specifications

Emission Factor Sources - Activity-Based

For activity-based calculations, Dcycle uses emission factors from:

Ecoinvent - Life cycle inventory database (latest version available)
Industry-specific databases - Equipment-specific factors
Construction sector databases - Building material factors

Common activity-based metrics:

Buildings: m² of floor area, tonnes of construction materials
Vehicles: units, vehicle type
IT equipment: units, weight (kg)
Machinery: weight (kg), power rating (kW)

Calculation Details - Activity-Based

Activity-based emissions are calculated as:CO₂e = Quantity × Emission Factor (kg CO₂e/unit)Where:

Quantity: Physical measure (kg, m², units, etc.)
Emission Factor: Product-specific factor from database

Example (Steel Equipment - 5,000 kg):

5,000 kg × 2.8 kg CO₂e/kg = 14,000 kg CO₂e

Example (Office Building - 2,000 m²):

2,000 m² × 350 kg CO₂e/m² = 700,000 kg CO₂e

The supplier-specific method uses verified emission data from asset manufacturers (EPDs, PCFs).

Quantity → Manufacturer EPD/PCF → Verified EF → CO₂e
    ↓             ↓                   ↓            ↓
Physical      Third-party        kg CO₂e/unit   Total emissions
specs         verified                          (most accurate)

Key characteristics:

Uses Environmental Product Declarations (EPDs)
Highest accuracy (±5-15%)
Available for many construction products and equipment
Reflects actual manufacturing processes

Emission Factor Sources - Supplier-Specific

Supplier-specific emission factors come from:

Building material EPDs - Concrete, steel, glass, insulation
Equipment manufacturer PCFs - HVAC, machinery, vehicles
IT equipment disclosures - Servers, computers
Vehicle manufacturer data - Fleet vehicles

EPD databases:

EPD International - Global EPD registry
IBU EPD - German EPD program
INIES - French construction database

Calculation Details - Supplier-Specific

Supplier-specific emissions are calculated as:CO₂e = Quantity × Custom Emission Factor (kg CO₂e/unit)Where:

Quantity: Physical amount from specifications
Custom Emission Factor: Manufacturer-provided factor (from EPD/PCF)

Example (Low-carbon concrete from certified supplier):

Standard: 500 m³ × 300 kg CO₂e/m³ = 150,000 kg CO₂e
Low-carbon: 500 m³ × 180 kg CO₂e/m³ = 90,000 kg CO₂e
Savings: 60,000 kg CO₂e (40% reduction)

Amortization Approaches

The GHG Protocol allows two approaches for reporting capital goods emissions:

Option 1: Full Accounting in Year of Purchase (Default)

Report all emissions in the year the asset is acquired.This is the simpler approach and Dcycle’s default behavior.Pros:

Simple to implement
Matches accounting treatment timing
No tracking of asset useful life needed

Cons:

Creates emissions “spikes” in years with major investments
Year-over-year comparisons more difficult
May not reflect when the asset is actually used

# Default behavior: full emissions in purchase year
capital_asset = {
    "description": "New manufacturing facility",
    "expense_type": "capex",
    "quantity": 5000000,  # €5M full cost
    "purchase_date": "2024-01-15",  # All emissions in 2024
    # ...
}

Option 2: Depreciation/Amortization Over Useful Life

Spread emissions over the asset’s useful life, matching financial depreciation.This approach requires manual calculation and multiple annual entries.Pros:

Smoother emissions profile
Better reflects when asset value is consumed
Aligns with financial depreciation schedules

Cons:

More complex to implement
Requires tracking useful life for each asset
Must create entries for multiple years

# Example: €5M building with 25-year useful life
annual_emissions_value = 5000000 / 25  # €200,000 per year

# Create 25 annual entries
for year in range(2024, 2049):
    capital_asset = {
        "description": f"Manufacturing facility - Year {year - 2023} of 25",
        "expense_type": "capex",
        "quantity": 200000,  # €200K annual portion
        "purchase_date": f"{year}-01-01",
        # ...
    }

Contact Dcycle support for guidance on implementing the depreciation approach for your organization.

Data Flow

Identify Capital Assets

Review your fixed asset register to identify assets acquired during the reporting period

Classify by Asset Type

Categorize assets (buildings, machinery, vehicles, IT, etc.) for appropriate emission factors

Choose Calculation Method

Select spend-based, activity-based, or supplier-specific based on available data

Create Capital Goods Records

Record assets via API with expense_type: "capex" to classify as Category 2

Query and Analyze

View Category 2 emissions separately from Category 1 in reports

Step 4.2.1: Create a Spend-Based Capital Good

📋 Data Map: Spend-Based Capital Good

Field	Type	Required	Description	Example
`description`	string	❌	Asset description	`"New manufacturing equipment"`
`sector`	string	✅	Economic sector	`"Manufacture of machinery"`
`product_name`	string	✅	Product/asset category	`"Machinery and equipment n.e.c."`
`quantity`	number	✅	Acquisition cost	`500000`
`unit_id`	UUID	✅	Currency unit (€)	`"eur-unit-uuid"`
`country`	string	✅	Country of manufacture	`"DE"`
`purchase_date`	date	✅	Acquisition date	`"2024-03-15"`
`expense_type`	string	✅	Must be “capex”	`"capex"`
`supplier_id`	UUID	❌	Linked supplier	`"supplier-uuid"`

Where to get this data:

Quantity: From fixed asset register, purchase orders, or invoices
Sector/Product: Map from your asset categories (see Exiobase mapping)
Country: Country where the asset was manufactured

Record a capital asset using the spend-based method:

import requests
import os

headers = {
    "Authorization": f"Bearer {os.getenv('DCYCLE_API_KEY')}",
    "Content-Type": "application/json",
    "x-organization-id": os.getenv("DCYCLE_ORG_ID"),
    "x-user-id": os.getenv("DCYCLE_USER_ID"),
}

# Get the EUR unit
units = requests.get(
    "https://api.dcycle.io/v1/units",
    headers=headers,
    params={"page": 1, "size": 100}
).json()

eur_unit = next(u for u in units['items'] if u['abbreviation'] == '€')

# Create capital good (manufacturing equipment - spend-based)
capital_good_data = {
    "description": "CNC Machining Center - Model X500",
    "sector": "Manufacture of machinery and equipment n.e.c.",
    "product_name": "Machinery and equipment n.e.c.",
    "quantity": 500000,  # €500,000 acquisition cost
    "unit_id": eur_unit['id'],
    "country": "DE",  # Manufactured in Germany
    "purchase_date": "2024-03-15",
    "expense_type": "capex",  # ⚠️ IMPORTANT: This makes it Category 2
    "purchase_type": "spend_based",
}

response = requests.post(
    "https://api.dcycle.io/v1/purchases",
    headers=headers,
    json=capital_good_data,
)

capital_good = response.json()
print(f"✅ Capital good recorded: {capital_good['id']}")
print(f"   Description: {capital_good['description']}")
print(f"   Cost: €{capital_good['quantity']:,.2f}")
print(f"   CO₂e: {capital_good.get('co2e', 'Calculating...')} kg")
print(f"   Category: Scope 3 - Category 2 (Capital Goods)")

const axios = require('axios');

const headers = {
  Authorization: `Bearer ${process.env.DCYCLE_API_KEY}`,
  'Content-Type': 'application/json',
  'x-organization-id': process.env.DCYCLE_ORG_ID,
  'x-user-id': process.env.DCYCLE_USER_ID,
};

// Get the EUR unit
const unitsResponse = await axios.get(
  'https://api.dcycle.io/v1/units',
  { headers, params: { page: 1, size: 100 } }
);
const units = unitsResponse.data;
const eurUnit = units.items.find(u => u.abbreviation === '€');

// Create capital good (manufacturing equipment - spend-based)
const capitalGoodData = {
  description: 'CNC Machining Center - Model X500',
  sector: 'Manufacture of machinery and equipment n.e.c.',
  product_name: 'Machinery and equipment n.e.c.',
  quantity: 500000, // €500,000 acquisition cost
  unit_id: eurUnit.id,
  country: 'DE', // Manufactured in Germany
  purchase_date: '2024-03-15',
  expense_type: 'capex', // ⚠️ IMPORTANT: This makes it Category 2
  purchase_type: 'spend_based',
};

const response = await axios.post(
  'https://api.dcycle.io/v1/purchases',
  capitalGoodData,
  { headers }
);

const capitalGood = response.data;
console.log(`✅ Capital good recorded: ${capitalGood.id}`);
console.log(`   Description: ${capitalGood.description}`);
console.log(`   Cost: €${capitalGood.quantity.toLocaleString()}`);
console.log(`   CO₂e: ${capitalGood.co2e || 'Calculating...'} kg`);
console.log(`   Category: Scope 3 - Category 2 (Capital Goods)`);

Critical: Set expense_type: "capex"The expense_type field determines which Scope 3 category the emissions are assigned to:

expense_type: "opex" → Category 1 (Purchased Goods & Services)
expense_type: "capex" → Category 2 (Capital Goods)

If you omit this field or set it to “opex”, emissions will be incorrectly classified as Category 1.

Step 4.2.2: Create an Activity-Based Capital Good

📋 Data Map: Activity-Based Capital Good

Field	Type	Required	Description	Example
`description`	string	❌	Asset description	`"Steel production equipment"`
`sector`	string	✅	Product sector	`"Manufacture of basic metals"`
`product_name`	string	✅	Specific product	`"Basic iron and steel"`
`quantity`	number	✅	Physical quantity	`15000`
`unit_id`	UUID	✅	Physical unit (kg)	`"kg-unit-uuid"`
`country`	string	✅	Country of manufacture	`"DE"`
`purchase_date`	date	✅	Acquisition date	`"2024-03-15"`
`expense_type`	string	✅	Must be “capex”	`"capex"`
`supplier_id`	UUID	❌	Equipment manufacturer	`"supplier-uuid"`

Where to get this data:

Quantity: From equipment specifications, shipping documents, or technical data sheets
Unit: Match the physical characteristic (kg for weight, m² for buildings)

Use activity-based method when you have physical specifications:

import requests
import os

headers = {
    "Authorization": f"Bearer {os.getenv('DCYCLE_API_KEY')}",
    "Content-Type": "application/json",
    "x-organization-id": os.getenv("DCYCLE_ORG_ID"),
    "x-user-id": os.getenv("DCYCLE_USER_ID"),
}

# Get the kg unit
units = requests.get(
    "https://api.dcycle.io/v1/units",
    headers=headers,
    params={"page": 1, "size": 100}
).json()

kg_unit = next(u for u in units['items'] if u['abbreviation'] == 'kg')

# Create capital good (industrial equipment - activity-based)
capital_good_data = {
    "description": "Industrial Steel Press - 15 tonnes",
    "sector": "Manufacture of fabricated metal products",
    "product_name": "Structural metal products",
    "quantity": 15000,  # 15,000 kg (15 tonnes)
    "unit_id": kg_unit['id'],
    "country": "IT",  # Manufactured in Italy
    "purchase_date": "2024-06-01",
    "expense_type": "capex",  # Category 2
    "purchase_type": "activity_based",
}

response = requests.post(
    "https://api.dcycle.io/v1/purchases",
    headers=headers,
    json=capital_good_data,
)

capital_good = response.json()
print(f"✅ Capital good recorded (activity-based): {capital_good['id']}")
print(f"   Weight: {capital_good['quantity']:,.0f} kg")
print(f"   CO₂e: {capital_good.get('co2e', 'Calculating...')} kg")

When to Use Activity-Based for Capital GoodsActivity-based is particularly useful for:

Heavy equipment: Weight-based calculation (kg CO₂e/kg of steel, aluminum, etc.)
Buildings: Area-based calculation (kg CO₂e/m² of floor space)
Vehicles: Unit-based calculation (kg CO₂e/vehicle by type)
Standardized equipment: When physical specs are readily available

Step 4.2.3: Create a Supplier-Specific Capital Good

📋 Data Map: Supplier-Specific Capital Good

Field	Type	Required	Description	Example
`description`	string	❌	Asset description	`"Low-carbon HVAC system"`
`quantity`	number	✅	Physical quantity	`1`
`unit_id`	UUID	✅	Unit	`"unit-uuid"`
`purchase_date`	date	✅	Acquisition date	`"2024-03-15"`
`expense_type`	string	✅	Must be “capex”	`"capex"`
`supplier_id`	UUID	✅	Equipment manufacturer	`"supplier-uuid"`
`custom_emission_factor_id`	UUID	✅	Custom EF from manufacturer EPD	`"custom-ef-uuid"`

Where to get this data:

Custom Emission Factor: Create from manufacturer’s EPD or Product Carbon Footprint
Supplier: Link to the equipment manufacturer

For highest accuracy, use manufacturer-provided emission data:

import requests
import os

headers = {
    "Authorization": f"Bearer {os.getenv('DCYCLE_API_KEY')}",
    "Content-Type": "application/json",
    "x-organization-id": os.getenv("DCYCLE_ORG_ID"),
    "x-user-id": os.getenv("DCYCLE_USER_ID"),
}

# Step 1: Create custom emission factor from manufacturer's EPD
kg_unit_id = "61743a63-ff70-459c-9567-5eee8f7dfd5c"  # kg unit UUID

group = requests.post(
    "https://api.dcycle.io/v1/custom_emission_groups",
    headers=headers,
    json={
        "name": "GreenTech HVAC - 2024 Product Line",
        "description": "EPD-verified emission factors for GreenTech HVAC systems",
        "category": "capex",  # Note: use capex category
        "ghg_type": 1,
    },
).json()

# Create emission factor from the EPD
factor = requests.post(
    f"https://api.dcycle.io/v1/custom_emission_factors/{group['id']}",
    headers=headers,
    json={
        "ef_name": "GreenTech HVAC System Model GT-500 (EPD S-P-54321)",
        "unit_id": "unit-uuid",  # per unit
        "factor_uploaded_by": "procurement@yourcompany.com",
        "tag": "advanced",
        "uncertainty_grade": 10,
        "factor_start_date": "2024-01-01",
        "factor_end_date": "2024-12-31",
        "additional_docs": "EPD No. S-P-54321, Verified by SGS",
        "emission_factor_values": [
            {"gas_type": "CO2", "value": 2500},  # kg CO2 per unit
            {"gas_type": "CH4", "value": 5.0},
            {"gas_type": "N2O", "value": 0.5},
        ],
    },
).json()

# Step 2: Create capital good using the custom emission factor
capital_good_data = {
    "description": "GreenTech HVAC System GT-500 (EPD verified)",
    "quantity": 3,  # 3 units
    "unit_id": "unit-uuid",
    "purchase_date": "2024-04-01",
    "expense_type": "capex",
    "supplier_id": "greentech-supplier-uuid",
    "custom_emission_factor_id": factor['id'],
}

response = requests.post(
    "https://api.dcycle.io/v1/purchases",
    headers=headers,
    json=capital_good_data,
)

capital_good = response.json()
print(f"✅ Capital good recorded (supplier-specific): {capital_good['id']}")
print(f"   Units: {capital_good['quantity']}")
print(f"   CO₂e: {capital_good.get('co2e', 'Calculating...')} kg")
print(f"   Method: EPD-verified (highest accuracy)")

Finding EPDs for Capital EquipmentEnvironmental Product Declarations (EPDs) are increasingly available for:

Construction products: Concrete, steel, insulation, windows
HVAC equipment: Heating, cooling, ventilation systems
Vehicles: Major manufacturers publish vehicle PCFs
IT equipment: Servers, computers (check manufacturer websites)

EPD registries:

EPD International - Global
IBU EPD - Germany
INIES - France

Bulk Upload Capital Goods

For large capital investments or fixed asset registers:

CSV Format for Capital Goods

description,sector,product_name,quantity,unit_id,country,purchase_date,expense_type,supplier_id,purchase_type
"Manufacturing facility expansion",Construction,Construction work,2000000,eur-uuid,ES,2024-01-15,capex,,spend_based
"CNC Machine Model X500",Manufacture of machinery,Machinery and equipment,500000,eur-uuid,DE,2024-02-01,capex,supplier-uuid-1,spend_based
"Fleet vehicles (10 trucks)",Manufacture of motor vehicles,Motor vehicles,750000,eur-uuid,ES,2024-03-01,capex,supplier-uuid-2,spend_based
"Server infrastructure",Manufacture of computers,Computer and electronic products,300000,eur-uuid,US,2024-04-01,capex,supplier-uuid-3,spend_based

Key points:

expense_type must be capex for all capital goods
Use appropriate sector/product mapping for each asset type
Include supplier_id when available for tracking

Upload Process

# Get presigned URL for bulk upload
upload_response = requests.post(
    "https://api.dcycle.io/v1/purchases/bulk/csv",
    headers=headers,
    json={"file_name": "capital_goods_2024.csv"},
).json()

# Upload CSV to presigned URL
with open('capital_goods_2024.csv', 'rb') as f:
    requests.put(upload_response['upload_url'], data=f)

print(f"✅ Capital goods CSV uploaded")
print(f"   Processing will begin automatically")

Common Capital Goods Sectors

Here are the most common Exiobase sectors for capital goods:

Asset Type	Exiobase Sector	Typical EF (kg CO₂e/€)
Buildings - Commercial	Construction	0.30 - 0.45
Buildings - Industrial	Construction	0.35 - 0.50
Machinery - General	Manufacture of machinery and equipment n.e.c.	0.40 - 0.55
Vehicles - Trucks	Manufacture of motor vehicles	0.35 - 0.45
Vehicles - Cars	Manufacture of motor vehicles	0.30 - 0.40
IT - Servers	Manufacture of computer, electronic and optical products	0.25 - 0.40
IT - Computers	Manufacture of computer, electronic and optical products	0.20 - 0.35
HVAC Systems	Manufacture of electrical equipment	0.35 - 0.50
Furniture	Manufacture of furniture	0.25 - 0.40

Construction ProjectsFor major construction projects (new buildings, facility expansions), consider:

Spend-based for initial estimates (total project cost × construction EF)
Activity-based for major materials (steel, concrete, glass tonnage)
EPDs for specific materials from suppliers

This hybrid approach improves accuracy while remaining practical.

Query Capital Goods Emissions

Separate Category 1 and Category 2 in Reports

# Query purchases filtered by expense_type
capital_goods = requests.get(
    "https://api.dcycle.io/v1/purchases",
    headers=headers,
    params={
        "page": 1,
        "size": 50,
        "expense_type": "capex",  # Only capital goods
        "start_date": "2024-01-01",
        "end_date": "2024-12-31",
    },
).json()

purchased_goods = requests.get(
    "https://api.dcycle.io/v1/purchases",
    headers=headers,
    params={
        "page": 1,
        "size": 50,
        "expense_type": "opex",  # Only regular purchases
        "start_date": "2024-01-01",
        "end_date": "2024-12-31",
    },
).json()

# Calculate totals
cat2_total = sum(p['co2e'] for p in capital_goods['items'])
cat1_total = sum(p['co2e'] for p in purchased_goods['items'])

print(f"📊 Scope 3 Purchases Summary (2024)")
print(f"   Category 1 (Purchased goods): {cat1_total:,.0f} kg CO₂e")
print(f"   Category 2 (Capital goods): {cat2_total:,.0f} kg CO₂e")
print(f"   Total: {cat1_total + cat2_total:,.0f} kg CO₂e")

Analyze Capital Goods by Asset Type

from collections import defaultdict

# Aggregate by sector
by_sector = defaultdict(lambda: {'co2e': 0, 'cost': 0, 'count': 0})

for asset in capital_goods['items']:
    sector = asset['sector']
    by_sector[sector]['co2e'] += asset['co2e']
    by_sector[sector]['cost'] += asset['quantity']
    by_sector[sector]['count'] += 1

# Sort by emissions
sorted_sectors = sorted(
    by_sector.items(),
    key=lambda x: x[1]['co2e'],
    reverse=True
)

print(f"\n📊 Capital Goods by Asset Type")
for sector, data in sorted_sectors:
    pct = (data['co2e'] / cat2_total) * 100 if cat2_total > 0 else 0
    print(f"\n{sector}:")
    print(f"   Assets: {data['count']}")
    print(f"   Investment: €{data['cost']:,.0f}")
    print(f"   CO₂e: {data['co2e']:,.0f} kg ({pct:.1f}%)")

Troubleshooting

Issue: Capital Good Showing as Category 1

# Check the expense_type field
purchase = requests.get(
    f"https://api.dcycle.io/v1/purchases/{purchase_id}",
    headers=headers,
).json()

print(f"Expense type: {purchase['expense_type']}")

if purchase['expense_type'] != 'capex':
    print("⚠️  This is classified as Category 1, not Category 2")
    print("💡 Update the expense_type to 'capex':")
    
    # Fix the classification
    requests.patch(
        f"https://api.dcycle.io/v1/purchases/{purchase_id}",
        headers=headers,
        json={"expense_type": "capex"},
    )

Issue: What Counts as a Capital Good?

"""
CAPITAL GOODS (Category 2 - use expense_type: "capex"):
✅ Buildings, facilities, infrastructure
✅ Machinery and production equipment
✅ Vehicles (if purchased, not leased)
✅ IT servers, data centers
✅ Office furniture (if capitalized)
✅ Major renovations/improvements

PURCHASED GOODS (Category 1 - use expense_type: "opex"):
✅ Raw materials, components
✅ Office supplies
✅ Services (consulting, cleaning, etc.)
✅ Maintenance and repairs
✅ Leased assets (Category 8)
✅ Items expensed in year of purchase

RULE OF THUMB:
- If it's capitalized on your balance sheet → Category 2 (capex)
- If it's expensed in P&L → Category 1 (opex)
"""

Next Steps

Category 1: Purchased Goods

Track regular purchased goods and services

Custom Emission Factors

Use manufacturer EPDs for equipment

Supply Chain Tutorial

Complete supply chain management

Scope 3 Overview

Back to all Scope 3 categories

Calculate Emissions

ISO 14064

GHG Protocol

GLEC v3.0 Framework

Use Case Tutorials

Life Cycle Assessment (LCA)

Own Workforce (Social Data)

ISO 14001 Management Systems

Advanced

Automation & AI

Understanding Scope 3 Category 2

Prerequisites

Data Map: Capital Goods Requirements Overview

Calculation Methods

Amortization Approaches

Data Flow

Step 4.2.1: Create a Spend-Based Capital Good

Step 4.2.2: Create an Activity-Based Capital Good

Step 4.2.3: Create a Supplier-Specific Capital Good

Bulk Upload Capital Goods

CSV Format for Capital Goods

Upload Process

Common Capital Goods Sectors

Query Capital Goods Emissions

Separate Category 1 and Category 2 in Reports

Analyze Capital Goods by Asset Type

Troubleshooting

Issue: Capital Good Showing as Category 1

Issue: What Counts as a Capital Good?

Next Steps

Category 1: Purchased Goods

Custom Emission Factors

Supply Chain Tutorial

Scope 3 Overview

​Understanding Scope 3 Category 2

​Prerequisites

​Data Map: Capital Goods Requirements Overview

​Calculation Methods

​Amortization Approaches

​Data Flow

​Step 4.2.1: Create a Spend-Based Capital Good

​Step 4.2.2: Create an Activity-Based Capital Good

​Step 4.2.3: Create a Supplier-Specific Capital Good

​Bulk Upload Capital Goods

​CSV Format for Capital Goods

​Upload Process

​Common Capital Goods Sectors

​Query Capital Goods Emissions

​Separate Category 1 and Category 2 in Reports

​Analyze Capital Goods by Asset Type

​Troubleshooting

​Issue: Capital Good Showing as Category 1

​Issue: What Counts as a Capital Good?

​Next Steps

Category 1: Purchased Goods

Custom Emission Factors

Supply Chain Tutorial

Scope 3 Overview

Understanding Scope 3 Category 2

Prerequisites

Data Map: Capital Goods Requirements Overview

Calculation Methods

Amortization Approaches

Data Flow

Step 4.2.1: Create a Spend-Based Capital Good

Step 4.2.2: Create an Activity-Based Capital Good

Step 4.2.3: Create a Supplier-Specific Capital Good

Bulk Upload Capital Goods

CSV Format for Capital Goods

Upload Process

Common Capital Goods Sectors

Query Capital Goods Emissions

Separate Category 1 and Category 2 in Reports

Analyze Capital Goods by Asset Type

Troubleshooting

Issue: Capital Good Showing as Category 1

Issue: What Counts as a Capital Good?

Next Steps