by Phil Riebel - President, Sustainable Paper Group, Inc.
For many companies, the majority of their greenhouse gas emissions no longer come from their own operations - they come from their supply chains. These indirect emissions, known as Scope 3, often represent more than 70 percent of a company’s total carbon footprint.
For organizations that purchase large volumes of paper and paper-based packaging, this has important implications. Paper is no longer simply a cost and quality decision. It has become a measurable emissions variable within corporate climate reporting, and procurement teams are increasingly expected to account for it.
As corporations, governments, and investors intensify their focus on climate action, Scope 3 greenhouse gas emissions have become a major driver of procurement decisions. Unlike Scope 1 emissions (direct emissions from owned operations) and Scope 2 emissions (indirect emissions from purchased electricity and energy), Scope 3 includes all other indirect emissions across a company’s value chain.
New disclosure requirements and investor expectations are accelerating the need for companies to measure and manage these value-chain emissions. Regulations such as the EU Corporate Sustainability Reporting Directive (CSRD) and initiatives such as the Science Based Targets initiative are pushing organizations to quantify and reduce emissions associated with purchased goods and services.
For companies that purchase significant volumes of paper and paper-based packaging, these materials can represent one of the largest contributors to their overall carbon footprint.
Where Paper Fits in Scope 3 Emissions
The GHG Protocol defines 15 Scope 3 categories that capture emissions occurring across a company’s value chain, both upstream and downstream. These range from purchased goods and transportation to product use and end-of-life treatment.
Rather than listing all 15 categories here, the full framework can be reviewed in the GHG Protocol Scope 3 Standard. For buyers of paper and paper-based packaging, three categories are typically the most relevant.
Purchased Goods and Services (Category 1)
This is usually the largest Scope 3 category for companies that purchase paper products or packaging materials. It includes the upstream carbon footprint of the paper itself—from forest management and fiber sourcing through pulping, papermaking, and delivery.
Upstream Transportation and Distribution (Category 4)
This category captures emissions associated with transporting paper and packaging materials through the supply chain.
End-of-Life Treatment of Sold Products (Category 12)
This includes emissions related to recycling, landfill, or incineration of paper products and packaging after use.
Because paper and paper-based packaging are high-volume purchased materials with measurable lifecycle emissions, they often become one of the most material contributors to corporate Scope 3 inventories.
Why Paper Has a Disproportionate Impact
Paper is a material input with an embedded carbon footprint that spans multiple stages of the value chain, including:
• Forest management and harvesting
• Recovered fiber collection and transportation of recycled paper
• Pulp production
• Paper manufacturing
• Energy use at mills
• Transportation through the supply chain
• Distribution and converting
• End-of-life recycling or disposal
For many paper and packaging buyers that do not operate manufacturing facilities, most emissions do not come from offices, warehouses, or retail locations. They come from the materials they purchase.
Because purchased goods and services are often the largest Scope 3 category, procurement decisions can be one of the most effective levers companies have to reduce value-chain emissions.
In many cases, paper products represent a dominant share of Scope 3 emissions within Category 1 (Purchased Goods and Services).
This becomes even clearer as companies move from high-level corporate inventories toward product carbon footprints (PCFs). The carbon intensity of paper directly affects the footprint of books, catalogs, magazines, marketing materials, and paper-based packaging.
As a result, procurement teams are increasingly asking suppliers questions such as:
• What is the verified carbon footprint per tonne of paper?
• What energy mix does the mill operate on?
• Is the footprint independently verified?
• Can residual emissions be addressed through credible carbon balancing?
Carbon Balancing in a Scope 3 Context
Carbon offsets and programs such as Carbon Balanced Paper provide a mechanism for addressing the embodied emissions of paper products.
In practice, the carbon footprint of the paper is calculated and residual emissions are balanced through verified carbon reduction or conservation projects. Buyers can then report reduced or neutralized emissions associated with their purchased paper volumes.
For paper and packaging buyers, this offers several strategic benefits:
• Direct reduction of Category 1 Scope 3 emissions
• Alignment with science-based targets and net-zero commitments
• Stronger ESG reporting performance
• Demonstrable climate action for customers and investors
• Competitive advantage in procurement and RFP processes
As more organizations adopt full value-chain carbon accounting, the carbon intensity of materials is becoming an increasingly important factor in supplier selection.
Conclusion
Scope 3 emissions now dominate corporate greenhouse gas inventories, particularly for organizations that rely heavily on purchased materials. For many companies, paper and paper-based packaging are among the largest contributors within the Purchased Goods and Services category.
As climate disclosure requirements expand and science-based targets tighten, companies are increasingly recognizing that procurement decisions about materials—including paper—directly influence their reported emissions.
Reducing the carbon footprint of purchased paper is therefore becoming a practical and measurable way to lower overall Scope 3 emissions, including the using of carbon offset strategies.
Learn more about Carbon Balanced Paper at carbonbalancedpaperna.com.
