Advancing consistency in Scope 3 category 1 accounting for the PGM industry
The International Platinum Group Metals Association, in collaboration with Sphera, has published new guidance to support a harmonized approach to calculating and reporting Scope 3 Category 1 (Purchased Goods and Services) emissions across the platinum group metals (PGM) value chain.
Scope 3.1 emissions represent a significant share of total greenhouse gas footprints in the PGM sector, driven by energy-intensive upstream activities and complex material flows. At the same time, the absence of detailed methodological direction in existing frameworks - such as the Greenhouse Gas Protocol - has led to divergent accounting practices, limited comparability, and an elevated risk of double counting.
Addressing a critical methodological gap
This guidance introduces a structured and transparent framework for emissions attribution in scenarios that have historically lacked clarity, particularly:
- Paper trading and swaps
- Toll refining and contract processing arrangements
- Complex ownership and control structures across the value chain
By defining minimum boundaries and optional reporting criteria, the guidance enables companies to apply consistent decision rules across these use cases while maintaining alignment with established standards.
Driving transparency, comparability, and auditability
A central objective of the guidance is to improve the robustness of Scope 3.1 inventories by:
- Clarifying who accounts for which emissions under specific transaction types
- Reducing the risk of systematic double counting across value chain actors
- Strengthening data quality practices, with a clear preference for supplier-specific (primary) data
This approach supports more reliable disclosures and facilitates meaningful comparisons across companies and reporting periods.
Supporting industry alignment and future standard-setting
Developed with input from IPA member companies, the guidance reflects current industry practices while providing a forward-looking foundation for alignment with evolving frameworks, including those from the Science Based Targets initiative and European sustainability reporting requirements.
Beyond the PGM sector, the methodology is applicable to other industries with complex supply chains and transactional structures, offering a potential reference point for broader Scope 3 standardization efforts.
A step toward more credible Scope 3 reporting
By addressing ambiguity in high-impact areas of Scope 3 accounting, this guidance contributes to greater consistency, transparency, and credibility in emissions reporting - supporting both corporate climate strategies and stakeholder expectations.
The guidance can be downloaded below (click on cover).
