2021 Owens Corning Sustainability Report | Reducing Our Environmental Footprint | Combating Climate Change | 155 Purchased Goods and Services To determine the impact from purchased goods and services, we use insight gained from our manufacturer-specific product life cycle assessments (LCAs). Annual production data are combined with life cycle modules that represent raw material, and that is used to calculate the GHG emissions of the materials used to manufacture of products across our portfolio. The category of purchased goods and services is interpreted as the cradle-to-supplier-gate global warming potential impact of the representative raw material inputs used to manufacture Owens Corning ® products. The data used to model these impacts come from Owens Corning’s manufacturer-specific product LCA studies. Upstream Transportation and Distribution Transportation is a significant source of GHG emissions when sourcing raw materials for product manufacturing as well as in the distribution of finished goods. Using data from our transportation management systems, we determine the weight of supplied raw materials and the corresponding distances transported by each major transportation mode. After combining this activity data with the respective GHG emissions factor for each mode, we can estimate the GHG emissions generated from the inbound transportation of supplied input materials. Throughout the COVID-19 pandemic, both business travel and employee commuting have been dramatically curtailed, and we have relied heavily on remote work and video conferencing. This pivot has been relatively seamless, as we have long been committed to integrating this technology into our operations. Our calculations for 2021 have been adjusted to account for the sites where the majority of our employees have been able to telework. Reductions here had an impact on our Scope 3 emissions, and we will continue to monitor them as restrictions continue to be lifted in 2022. Downstream Transportation and Distribution Primary data for product shipments was collected internally from Owens Corning logistics management systems. From the datasets collected, activity data consisting of the weight of products shipped, distance transported, and transportation mode were combined with mode- specific emissions factors to calculate the GHG emissions generated from the outbound distribution of finished goods. Fuel- and Energy-Related Activities In fuel- and energy-related activities, we aim to quantify the GHG emissions that occur both upstream and downstream of electricity generation. Upstream emissions, which are cradle-to-generation in scope, include those from activities required to generate electricity, such as the extraction, processing, and transportation of fuels. Downstream emissions, which are generation- to-consumption, include those produced from additional electricity generation that is needed to compensate for line losses that occur during transmission and distribution. In our calculation for Scope 3 GHG emissions for fuel- and energy-related activities, upstream impacts were determined using life cycle impact assessment factors, calculated using geographic-specific unit processes for high-voltage production from Ecoinvent v3.8, and combined with emission rate data from the U.S. EPA’s eGRID (for U.S. facilities) and IEA (for non-U.S. facilities). For U.S. facilities, data for downstream transmission and distribution line losses were calculated using eGRID. For non-U.S. facilities, we used IEA datasets for the calculation. Capital Goods The category of capital goods represents the GHG emissions generated from our assets, which include manufacturing and construction equipment as well as land. We determine the representative industry sector associated with each asset class’s economic activity. GHG emissions are calculated using the annual expenses incurred within the asset class and the GHG emissions generated per unit of economic activity within its industry sector. Determination of Scope 3 emissions associated with capital goods was performed using an EIO-LCA- based method and was calculated using the EIO-LCA online tool developed by Carnegie Mellon University. Primary data were collected internally on total spend for capital expenditure.