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Understanding Scope 3 Category 4

Upstream transportation and distribution covers emissions from transporting and distributing products purchased by your organization—in vehicles and facilities not owned or controlled by you. According to the GHG Protocol Scope 3 Standard, Category 4 includes:
  • Inbound logistics: Transportation of purchased goods from Tier 1 suppliers to your facilities
  • Third-party distribution: Distribution services purchased for inbound goods
  • Transportation between facilities: Movement between your locations (if using third-party logistics)
Category 4 vs Category 9
  • Category 4 (Upstream): Transportation of products you purchase from suppliers to your facilities
  • Category 9 (Downstream): Transportation of products you sell from your facilities to customers
Important ClarificationsOutbound logistics you pay for = Category 4 (not Category 9)If your company purchases outbound logistics services (e.g., you hire a carrier to deliver products to your customers), those emissions belong in Category 4—not Category 9. This is because Category 4 includes all transportation services you purchase, regardless of direction. Category 9 only applies when the customer arranges and pays for transportation.Upstream of Tier 1 = Category 1 (not Category 4)Transportation between your Tier 2 and Tier 1 suppliers (i.e., upstream of your direct suppliers) is not included in Category 4. Those emissions are already embedded in Category 1 (Purchased Goods and Services) as part of the cradle-to-gate footprint of the products you purchase.

Prerequisites

Before starting, ensure you have:
Using the Dcycle App?You can track upstream transportation through our web interface:

Data Map: Category 4 Requirements Overview

Unknown Transport TypeIf the transport type (vehicle) is unknown, you can set transport_type: "unknown" and Dcycle will estimate the most likely transport mode based on the origin and destination data.When using transport_type: "unknown":
  • Origin and destination are mandatory - Dcycle needs location data to estimate the appropriate transport mode
  • The system analyzes the route characteristics (distance, countries involved) to determine if it’s likely road, rail, maritime, or air transport
Distance (kms) FieldThe kms field allows you to provide the exact distance if known. This is useful when:
  • You have precise distance data from your logistics provider
  • The route is non-standard (e.g., specific highway routes)
  • Geocoding might not accurately represent the actual route
Conditional requirements:
  • If kms is provided: Origin and destination are optional (distance is already known)
  • If kms is not provided: Origin and destination are mandatory (Dcycle calculates distance via geocoding)

Calculation Methods

The most accurate method uses the Dcycle Transport and Distribution API:
Dcycle supports four transport types:For road transport, you can further specify the travel_method:
  • truck - Heavy goods vehicles (default for freight)
  • car - Light vehicles
  • bicycle - Zero emission (non-electric)
  • electric_kick_scooter - Last-mile delivery
  • motorbike - Small deliveries
Emission factors are adjusted based on:Electric vehicles:
  • Set electric: true for electric vehicles
  • Significantly lower emissions for road and rail
Refrigerated transport:
  • Set refrigerated: true for cold chain logistics
  • Adds ~10-20% to emissions due to cooling energy
Aircraft size (for air transport):
  • Automatically determined by distance
  • Short-haul vs long-haul aircraft have different factors
For transport and distribution, Dcycle uses emission factors from:Ecoinvent:
  • Comprehensive lifecycle emission factors by transport mode
  • Covers road, rail, air, and maritime transport
  • Accounts for vehicle type, fuel, and regional variations
  • Updated regularly with latest LCA data
Distance calculation:
  • Road/Rail/Air: Google Maps API for accurate routing
  • Maritime: CERDI distance databases

Step 1: Calculate Shipment Emissions

Transport Route fields:Transport Section fields:⚠️ Conditional requirements:
  • If kms is provided → origin and destination are optional
  • If kms is NOT provided → origin and destination are required
  • If transport_type is "unknown"origin and destination are required
Where to get this data:
  • Origin/Destination: Supplier address from purchase orders or invoices
  • Weight: Bill of lading, packing list, or purchase order
  • Transport type: Carrier information (air, road, rail, maritime) or “unknown”
  • Kms: Distance from logistics provider or transport invoice
Track individual inbound shipments from suppliers:

Multi-Modal Shipments

For shipments using multiple transport modes (e.g., sea + road), create multiple transport sections for a single route:

Step 2: Bulk Upload Inbound Shipments

For high-volume operations, upload shipments via CSV:

CSV Format

CSV Notes:
  • kms column: Leave empty to auto-calculate distance from origin/destination
  • transport_type: Use unknown if vehicle type is not known (origin/destination required)
  • travel_method: Only needed for road transport type (truck, car, etc.)

Upload and Process

Step 3: Query Category 4 Emissions

Get Category 4 Totals

Analyze by Supplier

Compare Category 4 to Other Scope 3

Best Practices

1. Ensure Complete Shipment Data

2. Integrate with Procurement

Link logistics to your purchase orders for traceability:

3. Set Reduction Targets

Reduction Strategies for Category 4
  1. Consolidate shipments: Fewer, fuller trucks = lower emissions per kg
  2. Near-shoring: Source from closer suppliers
  3. Modal shift: Sea/rail instead of air/road where possible
  4. Supplier engagement: Work with logistics providers on efficiency
  5. Route optimization: Encourage direct routes, avoid transshipment

Troubleshooting

Issue: Missing Origin/Destination Data

Issue: Unknown Transport Mode

Issue: Category 4 Seems Too High/Low

Next Steps

Logistics Tutorial

Complete logistics API documentation

Category 9: Downstream Transport

Track outbound transportation to customers

Category 1: Purchased Goods

Link purchases to transport emissions

Scope 3 Overview

Back to all Scope 3 categories