Scope 3 Emissions for Care Homes: A Practical Guide for Care Home Operators

Quick summary: Understanding Scope 3 emissions for care homes helps operators identify the environmental impact of their supply chains, improve sustainability reporting and prepare for growing expectations from local authorities, NHS commissioners and other stakeholders.

Key Takeaways

• Scope 3 emissions are indirect greenhouse gas emissions associated with activities outside a care home’s direct operations, including purchased goods, catering, waste, transport and outsourced services.
• For many care providers, Scope 3 can represent a substantial proportion of their overall carbon footprint, particularly where they rely on extensive supply chains.
• Local authorities and NHS commissioners are increasingly considering environmental sustainability when assessing providers, although specific reporting requirements vary between contracts.
• Care homes can begin measuring Scope 3 emissions using supplier expenditure, invoices and operational records before introducing more detailed calculations.
• Reducing Scope 3 emissions doesn’t necessarily require major investment. Better purchasing decisions, waste management and supplier engagement can all make a difference.
• Accurate electricity and gas consumption records also support carbon reporting, including calculations relating to upstream energy emissions.

Why Scope 3 Emissions Matter for Care Home Operators

Running a care home involves considerably more than managing the energy consumed within the building. From the food served to residents and the medical supplies used every day to laundry collections and deliveries, numerous activities contribute to a home’s environmental impact.

While electricity and gas consumption are relatively straightforward to identify, emissions associated with suppliers and external services can be more difficult to understand.

This is where Scope 3 emissions become important.

For care home operators, understanding these indirect emissions provides a clearer picture of their environmental footprint and highlights opportunities to make improvements without compromising resident care.

Local Authority and Commissioner Expectations

Environmental sustainability is becoming an increasingly important consideration across health and social care procurement.

Local authorities and NHS organisations may ask providers to demonstrate how they monitor environmental performance, manage emissions and contribute towards wider sustainability objectives.

The precise expectations depend on the commissioning organisation, contract and procurement framework.

However, having a basic understanding of Scope 3 emissions can help care homes respond confidently when environmental questions arise.

Contract and Tender Readiness

Care providers competing for contracts may encounter questions about carbon reduction plans, environmental policies and supplier sustainability.

These requirements aren’t necessarily limited to large organisations.

Smaller operators may also benefit from maintaining accessible emissions information, particularly when applying for new contracts or renewing existing arrangements.

Starting early gives providers time to develop reliable records rather than attempting to gather several years of information during a tender process.

The Supply Chain as the Largest Part of the Footprint

A care home’s supply chain can account for a significant proportion of its total emissions.

Food production, medical equipment manufacturing, transport and outsourced laundry services all create emissions before goods or services reach the care home.

The exact contribution varies depending on purchasing patterns, building operations and the services delivered.

Understanding which activities contribute most allows operators to prioritise improvements where they’re likely to have the greatest impact.

Scope 1, 2 and 3 in a Care Home at a Glance

Carbon accounting divides greenhouse gas emissions into three scopes, helping organisations distinguish between emissions they produce directly and those associated with their wider activities.

What Falls Under Each Scope in a Care Home

Scope 1 emissions come from sources owned or controlled by the care home. These typically include natural gas burned in boilers, fuel consumed by company-owned vehicles and certain refrigerant leaks.

Scope 2 emissions relate to purchased electricity, heating, cooling or steam consumed by the organisation.

Scope 3 emissions cover other indirect emissions throughout the value chain.

For a care home, these might include food purchases, medical consumables, waste disposal, employee commuting and external service providers.

It’s important to distinguish between the scopes to avoid counting the same emissions incorrectly within an organisation’s inventory.

For example, electricity consumed by the care home belongs within Scope 2, while emissions associated with producing and transporting the fuel used to generate that electricity may fall under Scope 3.

Where Care Home Scope 3 Emissions Come From

Scope 3 emissions cover numerous activities, although some will be considerably more relevant to care homes than others.

Identifying the most significant sources is an important first step towards building a practical reporting process.

Food and Catering

Providing meals throughout the day requires regular deliveries of food and catering supplies.

Emissions arise from agricultural production, food processing, packaging and transportation.

Meat and dairy products can have particularly significant environmental impacts, although emissions vary between products and production methods.

Care homes can examine purchasing records and food waste volumes to understand where improvements may be possible while maintaining residents’ nutritional requirements.

Medical Supplies, PPE and Consumables

Gloves, aprons, dressings, cleaning products and other disposable supplies are essential for maintaining hygiene and delivering safe care.

However, manufacturing, packaging and transporting these products also generates emissions.

Purchasing records provide a useful starting point for estimating their impact.

Any changes to procurement must continue to meet infection prevention requirements and appropriate clinical standards.

Laundry and Linen Services

Care homes frequently process substantial quantities of bedding, towels, uniforms and residents’ clothing.

Where laundry is outsourced, emissions associated with the service may form part of Scope 3.

These can include energy consumed at external laundry facilities, collection vehicles and replacement linen.

Understanding collection frequency and service arrangements can help operators identify potential efficiencies.

Waste and Wastewater

Care homes generate food waste, general rubbish, packaging and potentially clinical waste requiring specialist treatment.

Different disposal methods produce different levels of emissions.

Wastewater treatment also contributes to the environmental footprint.

Waste contractor reports, collection schedules and disposal records can provide useful information for calculating these emissions.

Staff Commuting and Business Travel

Employees travelling to and from work contribute to Scope 3 emissions.

Business travel undertaken in vehicles not owned or controlled by the organisation may also fall within this scope.

Operators can estimate commuting emissions using anonymised staff surveys covering travel distance, transport methods and working patterns.

Agency Staff and Outsourced Services

Agency staffing, maintenance contractors, cleaning providers and other external services may contribute to a care home’s indirect emissions.

The appropriate accounting treatment depends on the nature of the purchased service and which emissions are already included elsewhere.

Starting with expenditure information can help identify which services warrant further investigation.

Fuel- and Energy-Related Activities (Category 3)

Some emissions linked to your gas and electricity happen before the energy reaches your home, such as fuel extraction and network losses. These fall under Scope 3 Category 3, which we explain in more detail later in this guide.

How to Measure Scope 3 Emissions in a Care Home

Measuring Scope 3 emissions can initially seem complicated, particularly for operators managing multiple suppliers and limited administrative resources.

However, care homes don’t need perfect data immediately. A structured approach allows providers to establish an initial footprint and improve accuracy over time.

Step 1: Set Your Boundary (Single Home or Group)

Begin by deciding which operations will be included in the assessment.

For an independent care home, this might involve one property and its associated purchasing activities.

Larger operators may need to include multiple homes, central offices and shared services.

Establishing a consistent organisational boundary is essential for producing comparable results and avoiding omissions.

Step 2: List Suppliers and Spend by Category

Review purchasing records to identify the suppliers and services used throughout the reporting year.

Group expenditure into relevant categories, such as catering, medical supplies, laundry, waste management and maintenance.

This provides an overview of where money is being spent and which activities may generate substantial emissions.

It’s also worth identifying suppliers responsible for particularly large contracts, as these may offer opportunities to obtain more detailed environmental information.

Step 3: Start With a Spend-Based Estimate

Spend-based calculations estimate emissions using the amount paid for goods or services and an appropriate emissions factor.

For example, annual expenditure on catering supplies can be multiplied by a relevant factor to produce an initial estimate.

Defra publishes emissions factors per pound spent on different types of goods and services, which can be used for this kind of estimate.

This approach is useful when detailed product information isn’t available.

However, expenditure doesn’t always reflect physical emissions accurately. Changes in prices can affect calculated results even when the quantities purchased remain unchanged.

Spend-based estimates should therefore be treated as a starting point rather than a precise measurement.

Step 4: Collect Data From Invoices and Contractors

Once the initial assessment is complete, operators can improve accuracy by collecting activity-based information.

This might include quantities of food purchased, waste weights, laundry volumes or delivery distances.

Contractors may already hold useful information within their existing reports.

Requesting relevant data during contract renewals can gradually make the reporting process easier.

Step 5: Calculate, Record and Review Each Year

Apply appropriate emissions factors to the collected data and record the methodology used.

The UK Government publishes greenhouse gas conversion factors that can support calculations for relevant activities.

Where information is estimated, document the assumptions and any gaps.

Reviewing the results annually allows care homes to monitor progress, identify changes and improve the quality of future reporting.

For example, a home spending £60,000 a year on food, using an illustrative factor of 0.5 kg CO₂e per £1, would have an estimated footprint of around 30 tonnes of CO₂e from food purchases.

Scope 3 Reporting and Commissioner Requirements for Care Providers

Care home operators should distinguish between legal reporting obligations and environmental information requested through procurement processes.

Not every provider is legally required to publish a complete Scope 3 inventory.

Nevertheless, sustainability information may still be relevant when pursuing contracts.

What Local Authorities and the NHS May Ask For

Depending on the procurement arrangement, commissioners may request environmental policies, emissions information, carbon reduction commitments or evidence of sustainable purchasing practices.

If you hold or are bidding for NHS contracts, you may need to publish a Carbon Reduction Plan. For new NHS contracts worth £5 million or more a year, the requirements tighten from April 2027, with suppliers expected to report all relevant Scope 3 emissions. Smaller contracts currently require a plan covering Scope 1, Scope 2 and a limited set of Scope 3 categories.

Providers should review the requirements of each tender rather than assuming a single reporting standard applies everywhere.

When Reporting Becomes Mandatory (SECR and Group Thresholds)

The Streamlined Energy and Carbon Reporting framework, known as SECR, applies to quoted companies and certain large unquoted companies and limited liability partnerships.

For relevant unquoted companies, the size criteria generally involve meeting at least two of three thresholds: turnover of £36 million, a balance sheet total of £18 million and 250 employees.

These are the established SECR thresholds, which should not be confused with thresholds used for other company reporting requirements.

SECR primarily concerns specified energy consumption and associated emissions, rather than requiring a complete Scope 3 inventory from every qualifying organisation.

Group structures, exemptions and reporting status can affect obligations, so larger care providers should confirm their individual position.

Data to Have Ready for Tenders and Frameworks

Care homes can prepare for procurement questions by maintaining accessible records covering energy consumption, environmental policies, waste management and relevant supplier information.

A documented emissions baseline and explanation of calculation methods can also be valuable.

Even where comprehensive Scope 3 reporting isn’t required, demonstrating a consistent approach can make environmental questionnaires considerably easier to complete.

Practical Ways to Reduce Scope 3 Emissions in a Care Home

Once operators understand their main emissions sources, the next step is identifying realistic improvements.

Many opportunities involve reviewing existing procedures rather than introducing entirely new systems.

Food Procurement, Menu Planning and Food Waste

Food purchasing presents several opportunities for reducing indirect emissions.

Reviewing portion sizes, monitoring discarded meals and improving stock rotation can help reduce unnecessary waste.

Menus can also be assessed to identify suitable lower-impact ingredients while continuing to meet residents’ dietary, cultural and nutritional needs.

The priority should always remain providing appropriate meals and maintaining quality of care.

Waste Reduction and Recycling

Separating recyclable materials, reducing unnecessary packaging and reviewing waste collections can improve environmental performance.

Care homes should also examine whether suppliers offer alternative packaging arrangements.

Clinical waste must continue to be handled according to the appropriate regulations, with recycling limited to materials that can be safely processed.

Laundry and Linen Choices

Operators using external laundry services can discuss collection schedules, transport efficiency and washing processes with their providers.

Durable linen may also reduce the frequency of replacement purchases.

However, decisions about washing temperatures, cleaning products and processing methods must remain consistent with infection prevention guidance.

Local Sourcing and Delivery Consolidation

Reducing unnecessary deliveries can help limit transport-related emissions.

Care homes may benefit from coordinating orders, reviewing delivery frequencies or purchasing suitable products from nearby suppliers.

Local sourcing isn’t automatically the lowest-carbon option, as manufacturing methods and transport efficiency also matter.

Nevertheless, reviewing delivery arrangements can reveal worthwhile improvements.

Supplier Engagement

Suppliers play an important role in Scope 3 reporting because they hold information that care homes cannot always collect independently.

Operators can ask major suppliers about emissions reporting, environmental policies and opportunities to reduce packaging or deliveries.

Introducing sustainability questions into procurement processes can encourage gradual improvements without disrupting existing care arrangements.

Where Care Home Energy Fits Into Your Scope 3 Footprint

Energy consumption remains an important part of carbon accounting, even though most emissions directly associated with a care home’s electricity and gas use fall within Scope 1 or Scope 2.

Understanding the relationship between these categories helps operators produce more complete calculations.

Fuel- and Energy-Related Activities (Category 3)

Scope 3 Category 3 captures certain upstream emissions associated with fuels and energy purchased by the organisation.

For natural gas, these can include emissions from extraction, processing and transportation before combustion.

For electricity, relevant calculations can include upstream generation-related emissions and transmission and distribution losses.

These emissions are separate from the direct combustion and purchased electricity emissions already reported under Scope 1 and Scope 2.

Using Energy Consumption Data for Scope 2 and Scope 3 Calculations

Accurate meter readings and supplier invoices provide the foundation for reliable energy-related emissions calculations.

Electricity consumption is generally recorded in kilowatt-hours, while gas bills can also provide consumption figures in the same unit.

Operators can use these figures with the appropriate emissions factors to calculate relevant emissions.

Keeping consistent records across reporting periods makes it easier to identify changes and supports more accurate carbon reporting.

Care Home Groups and Multi-Home Operators

Organisations managing several care homes face additional challenges because purchasing arrangements, building characteristics and operational practices may differ between locations.

A consistent reporting framework can make these differences easier to understand.

Consolidating Data Across Homes

Group operators should establish standard categories and reporting procedures for every location.

Centralised procurement records can simplify the process, although individual homes may still hold important information about waste, transport and local suppliers.

Using consistent reporting periods and calculation methods helps produce a reliable group-wide assessment.

Benchmarking Homes Against Each Other

Comparing emissions between homes can highlight differences in purchasing and operational efficiency.

However, comparisons should account for occupancy, resident needs, services provided and building characteristics.

Emissions per occupied bed or resident-day may provide more meaningful context than total emissions alone.

Benchmarking should identify opportunities for improvement rather than penalise homes with more complex care requirements.

Common Scope 3 Reporting Mistakes in Care Homes

One common mistake is attempting to measure every possible emissions source with the same level of detail immediately.

This can create unnecessary administrative work without substantially improving the initial assessment.

Other problems include overlooking outsourced services, using inconsistent reporting periods and failing to record assumptions.

Double counting can also occur when emissions are assigned to multiple categories without checking the calculation boundaries.

Care providers should avoid treating spend-based estimates as exact figures or comparing results from different years without considering changes in methodology.

A practical approach is to prioritise material emissions sources, document limitations and improve data quality progressively.

How D-ENERGi Can Support Care Home Energy Data and Reporting

Reliable energy information is an important foundation for understanding a care home’s carbon footprint.

It’s also worth checking your energy bills are set up correctly. Residential care homes usually qualify for reduced VAT on their energy, with qualifying electricity in Great Britain currently charged at 0% until 30 June 2027, and are generally excluded from the Climate Change Levy. Our guide to VAT on business gas and electricity explains how this works.

D-ENERGi supports businesses with their commercial gas and electricity requirements, helping operators access and understand the information associated with their energy supply.

For care homes, maintaining accurate consumption records can support Scope 1 and Scope 2 calculations alongside the relevant energy-related elements of Scope 3.

Although wider Scope 3 reporting requires information from suppliers, contractors and other operational activities, having dependable energy records makes one important part of the process easier to manage.

Care home operators reviewing their electricity and gas arrangements can contact D-ENERGi to discuss their business energy requirements.

Frequently Asked Questions (FAQs)

Do care homes have to report Scope 3 emissions?

Not all care homes are legally required to report Scope 3 emissions. Obligations depend on organisational size, reporting frameworks and specific contractual requirements. However, providers may be asked for environmental information during procurement, making voluntary measurement increasingly useful.

Why are councils and commissioners asking care homes for emissions data?

Local authorities and NHS commissioners have wider environmental and sustainability objectives. Requesting emissions information helps them understand the environmental impact of contracted services and assess how providers are managing carbon reduction.

What are the biggest sources of Scope 3 emissions in a care home?

Potentially significant sources include food and catering, medical consumables, outsourced laundry, waste disposal, employee commuting and purchased services. The largest contributors depend on each home’s operating arrangements, purchasing patterns and supplier relationships.

How can a small care home start measuring Scope 3 emissions?

Start by reviewing annual purchasing records, identifying major suppliers and grouping expenditure into relevant emissions categories. A basic spend-based estimate can establish an initial footprint, which can subsequently be improved using invoices, waste records and supplier information.

Is a spend-based Scope 3 estimate acceptable for a care home?

Spend-based estimates are a recognised starting point for carbon accounting, particularly where detailed activity data isn’t available. However, their suitability depends on the reporting framework or tender requirements. More accurate supplier-specific or activity-based data should be introduced where practical.

Where does care home energy use fit into Scope 3 emissions?

Gas burned on-site generally contributes to Scope 1, while purchased electricity contributes to Scope 2. Scope 3 Category 3 captures relevant upstream fuel and energy emissions, including certain transmission and distribution losses. Accurate consumption records help calculate these additional emissions without confusing them with direct energy use.