Scope 3 · Category 2

Scope 3 Category 2: Capital goods

Scope 3 Category 2 covers emissions from the production of capital goods you purchase — equipment, buildings and vehicles capitalised on the balance sheet. Report them in the year of acquisition using spend or supplier data, not depreciated over asset life, so CapEx spikes show clearly in that reporting year.

Capital goods are the buildings, machinery and vehicles you purchase and capitalise. Report production emissions in the year of acquisition — do not spread them across depreciation.

Pull CapEx registers and fixed-asset additions for the reporting year. Match each addition to a spend- or supplier-based capital goods factor, or to Activity Data Guide entries such as machinery, vehicles and purchased capital goods.

Exclude assets already counted in Scope 1/2 construction energy you own, and do not move operating purchases into Category 2 to ‘smooth’ totals.

Related activity data

By activity data

By compliance framework

Frequently asked questions

Why is CapEx reported in the purchase year?
The GHG Protocol Scope 3 Standard requires capital goods emissions in the year of acquisition so CapEx spikes remain visible. Depreciating them would understate that year’s value-chain impact.
Are leased assets Category 2?
Not usually. Leased assets you use as lessee sit in Category 8 (or Scope 1/2 if in your operational boundary). Category 2 is for capital purchases you own.
What data do I need for Category 2?
Acquisition cost by asset class is the common starting point. Supplier EPDs or product footprints are better when available for major plant and vehicles.
Does Category 2 include software?
Capitalised software and intangible CapEx may be included when material and treated as capital goods in your accounting policy — document the boundary clearly.
How does Category 2 relate to Category 1?
Expense purchases → Category 1. Capitalised additions → Category 2. Use your finance policy consistently so the same invoice is never in both.