Scope 3 category 1 guidance: enhancing consistency in value chain emissions accounting
The International Platinum Group Metals Association (IPA), in collaboration with Sphera, has developed sector-specific guidance to support a consistent and transparent approach to Scope 3 Category 1 (Purchased Goods and Services) emissions accounting within the platinum group metals (PGM) industry.
Scope 3.1 emissions represent a material share of total greenhouse gas footprints in the PGM value chain, driven by energy-intensive upstream processes and complex transactional structures. Existing frameworks, including the Greenhouse Gas Protocol, provide high-level principles but limited direction on how to treat industry-specific practices such as paper trading and toll refining. This has resulted in divergent interpretations, reduced comparability, and an increased risk of double counting.
A structured methodology for complex value chains
The IPA guidance establishes a clear and pragmatic framework for emissions attribution in complex scenarios, including:
- Paper trading and swap arrangements
- Tolling and contract refining models
- Transactions involving differing ownership and control structures
By defining minimum boundaries and optional reporting criteria, the guidance enables companies to apply consistent accounting logic while maintaining alignment with established international standards.
Improving data quality and decision-usefulness
The guidance reinforces best practice in emissions accounting by:
- Prioritizing supplier-specific (primary) data where available
- Providing direction on the use of secondary data where necessary
- Supporting more transparent and decision-useful Scope 3 disclosures
A key outcome is improved auditability and comparability of reported emissions, enabling more robust tracking of decarbonization progress across the sector.
Relevance beyond the PGM sector
While developed for IPA members, the methodology is directly applicable to industries characterized by complex supply chains, outsourced processing, and traded materials, including:
- Metals and mining (e.g. base metals, battery materials, recycling)
- Chemicals and process industries (including contract manufacturing models aligned with Together for Sustainability)
- Commodity trading and financial intermediaries
- Automotive and industrial manufacturing with significant upstream material footprints
- Electronics and high-tech sectors reliant on precious and critical materials
These sectors face similar challenges in defining system boundaries, allocating emissions, and avoiding double counting—making the guidance a transferable reference framework.
Supporting alignment and broader applicability
The guidance also provides practical input to ongoing developments in global standards and initiatives, including the Science Based Targets initiative and evolving European sustainability reporting requirements.
Advancing credible Scope 3 reporting
By addressing methodological gaps in high-impact areas of Scope 3 accounting, the IPA guidance contributes to greater consistency, transparency, and credibility in value chain emissions reporting—supporting both industry alignment and effective climate action.
The guidance can be downloaded below (click on cover).
