For manufacturers sourcing raw materials and components from Asia, South Asia, and the GCC, upstream freight is a significant Scope 3 category. A single annual container shipment from Karachi to Rotterdam generates roughly 2.5–4 tCO₂e per container — and manufacturers moving hundreds of containers per year accumulate a material Category 4 footprint that CSRD auditors will scrutinise.
Key takeaways
- Category 4 = inbound logistics only. Outbound post-sale = Category 9
- Use the GLEC Framework (v3.0) as the primary methodology — it's ISO 14083 aligned
- Air freight is 50–100× more emission-intensive per tonne-km than sea freight — small air shipments can dominate your Category 4 total
- Ask your 3PL for a GLEC-compliant emissions report — DHL, DSV, Kuehne+Nagel, DB Schenker all offer this now
- CSRD ESRS E1-6 requires Category 4 disclosure if material after double materiality assessment
What is included in Category 4?
Category 4 covers all transportation and distribution activities between your suppliers and your own facilities, where you do not own or operate the transport asset. This includes:
- Ocean freight (container, bulk, break-bulk) from overseas suppliers
- Air freight for urgent or high-value components
- Road freight (full truckload and less-than-truckload) from domestic or regional suppliers
- Rail freight
- Inland waterway transport
- Third-party courier and parcel services for purchased goods
- Port handling, drayage, and last-mile delivery to your facility where you do not own the vehicles
Category 4 does not include transport using vehicles you own or lease — that is Scope 1 (combustion) and Scope 3 Category 13 (downstream leased assets). It also does not include distribution to customers after the point of sale (Category 9) or transport of sold products by customers (Category 12).
Building your full carbon footprint? Our free Carbon Footprint Calculator includes a freight-mode emissions estimator for Scope 3 Categories 4 and 9 — enter your annual freight volume by mode and get an instant benchmark. Also see our full guide to calculating Scope 3 for manufacturers.
The GLEC Framework — the right methodology
The Global Logistics Emissions Council (GLEC) Framework is the international standard for calculating freight transport GHG emissions. Version 3.0 is aligned with ISO 14083:2023 and GHG Protocol. It provides mode-specific, vehicle-type-specific, and fuel-type-specific emission intensity factors expressed in gCO₂e per tonne-kilometre (gCO₂e/tkm).
The basic calculation formula is:
Category 4 emissions (tCO₂e) = Σ [Weight (tonnes) × Distance (km) × Emission factor (gCO₂e/tkm)] ÷ 1,000,000
| Transport mode | Typical GLEC emission factor | Relative to sea freight |
|---|---|---|
| Deep-sea container (average) | 8–16 gCO₂e/tkm | Baseline (1×) |
| Road (40t HGV, Europe average) | 62–80 gCO₂e/tkm | ~6× |
| Rail freight (EU average grid) | 22–28 gCO₂e/tkm | ~2× |
| Air freight (wide-body) | 500–950 gCO₂e/tkm | ~60× |
What data do you need?
For each inbound freight movement, you need three data points:
- Weight shipped (tonnes) — from purchase orders, delivery notes, or customs documentation.
- Distance (km) — actual routing distance if available, or great-circle distance from origin port/hub to destination facility. The GLEC Framework provides standard shipping lane distances for key trade routes.
- Transport mode — sea, air, road, or rail.
Your freight forwarder, 3PL, or in-house logistics team holds most of this data. The quickest path is to ask your freight forwarding partners for a shipment-level emissions report. Major providers now produce GLEC-compliant reports as standard: DHL GoGreen, Kuehne+Nagel ClimateCalc, DB Schenker SkyCargo, and DSV CO₂ Reporting all provide these.
When logistics data is not available
If your logistics providers cannot supply a GLEC emissions report, use the spend-based fallback: multiply your freight spend (in £/€/$) by the Defra, EXIOBASE, or EPA USEEIO sector emission factor for freight transport. The result has higher uncertainty than the activity-based method but is acceptable for a first-year Scope 3 inventory where data collection infrastructure is not yet in place.
Document the method clearly in your inventory documentation — CSRD assurance providers will look for transparency about methodology limitations, not perfection in the first reporting year.
Category 4 reduction opportunities
Category 4 is one of the most actionable Scope 3 categories for manufacturers because the drivers are directly within procurement and logistics decision-making. Key levers include:
- Modal shift: Moving shipments from air to sea freight delivers the single largest emission reduction per shipment.
- Nearshoring: Qualifying suppliers closer to your facility reduces transport distance and often switches mode from sea to road.
- Consolidation: Combining multiple smaller LCL (less-than-container-load) shipments into fewer FCL (full-container) shipments improves load efficiency and reduces per-tonne emissions.
- Route optimisation: Working with 3PLs on routing can reduce total distance.
- Low-carbon fuels: Engaging shipping lines and road freight carriers who offer biofuel or green hydrogen options — some now offer book-and-claim certificates for low-carbon fuel allocations.
See also our Supply Chain & Scope 3 Inventory service for manufacturers who want a full value-chain mapping that covers Category 4 alongside all other material categories.
Frequently asked questions
What is included in Scope 3 Category 4?
Category 4 covers upstream transportation and distribution — movement of purchased goods from suppliers to your facilities. It includes sea freight, air freight, road freight, rail, and inland waterways. It does not include transport using your own vehicles (Scope 1) or distribution to customers after sale (Category 9).
What is the GLEC Framework and should manufacturers use it?
The GLEC Framework is the internationally recognised standard for freight emissions calculation, aligned with ISO 14083 and GHG Protocol. Manufacturers with significant freight spend should use it because it provides mode-specific emission factors. Major logistics providers now supply GLEC-compliant reports automatically.
What data do I need from my logistics providers?
Weight of goods shipped (tonnes), distance (km or shipping lane), and transport mode. Ask your 3PL for a GLEC-aligned emissions report — DHL, Kuehne+Nagel, DSV, and DB Schenker all offer these now.
How do manufacturers differentiate Category 4 from Category 9?
Category 4 is inbound from suppliers to your facilities. Category 9 is outbound to customers after the point of sale. Transport between your own facilities using third-party carriers is Category 4. If ownership of goods transfers to customers before transportation, that leg is the customer's Category 4, not your Category 9.
Need help calculating and reducing your freight emissions?
We build Scope 3 Category 4 inventories and logistics decarbonisation roadmaps for manufacturers. Fixed price from €3,500 for a full Scope 3 inventory.
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