Scope 3.10: Processing of sold products

Learn how the Greenhouse Gas (GHG) Protocol defines Scope 3.10 emissions, how the protocol recommends calculating them and how they are actually calculated in Climate Reporting

How are Scope 3.10 emissions defined in the GHG Protocol?

Scope 3.10 covers emissions generated by third parties (e.g., manufacturers) during the processing of intermediate products sold by the reporting company. Intermediate products are products that require further processing, transformation, or incorporation into another product before they can be used by the end consumer. As a result, emissions occur after the reporting company has sold the product but before its final use.

In certain cases, the eventual end use of sold intermediate products may be unknown. This applies to industries where products are not sold as final goods (e.g., steel, textiles, chemicals), but as inputs for other manufacturers. For example, a company selling steel coils to an automotive manufacturer would report emissions arising from the energy used to process those coils into car parts under their Scope 3.10, whereas the car manufacturer would report the same emissions under Scope 1 or Scope 2.

As a result, a reporting company’s Scope 3 emissions from processing of sold intermediate products include the Scope 1 and Scope 2 emissions of downstream value chain partners (e.g., manufacturers).

How does the GHG Protocol recommend calculating Scope 3.10 emissions?

Scope 3.10 emissions should, in line with the GHG Protocol, be calculated using either the site-specific or average-data method. Companies should choose a calculation method based on their business goals and their ability to collect data from processing of sold intermediate products by third parties. In many cases, collecting primary data from downstream value chain partners may be difficult. In such cases, companies should use the average-data method.

1. Site-specific method
   • This method involves multiplying primary activity data (the amount of fuel and electricity used, and the waste generated from processing of intermediate products by downstream manufacturers) and applying appropriate emission factors, or directly collecting GHG emissions data for each downstream process.
   • Possible activity data includes:
     1. Site-specific GHG emissions data OR
     2. Types and quantities of intermediate goods sold by the reporting company AND
     3. Site-specific data from downstream value chain partners, which includes quantities of energy consumed in processes, mass of waste generated, and activity data related to non-combustion emissions
   • Possible data sources can include:
     1. Data on types and mass of intermediate goods sold can be obtained from internal records
     2. Data from downstream processes must be obtained from IT systems, utility bills, meter readings of downstream customers
   • Emission factors needed:
     1. Fuel emission factors, expressed in units of emissions per unit of energy consumed (e.g. kg CO2e/liter)
     2. Electricity emission factors, expressed in units of emissions per unit of electricity consumed (e.g. kg CO2e/kWh)
     3. Average waste treatment specific emission factors based on both the type of waste (cardboard, food-waste) and the treatment method used (e.g., landfill, incineration, or recycling). The emission factors should include end-of-life processes only.
2. Average-data method
   • This method involves multiplying secondary activity data (mass of sold intermediate products) by industry-average emission factors for the relevant downstream processes.
   • This method should be used when it is not possible to collect data from downstream value chain partners
   • Possible activity data includes:
     1. Processes involved in processing sold intermediate products into final product (e.g., steel forging, injection molding etc.,)
     2. Information needed for emission allocation (e.g., mass, economic value)
   • Possible data sources can include:
     1. Purchasing and sales records
     2. Internal data systems
     3. Industry-average data from associations, databases, research papers etc.,
   • Emission factors needed:
     1. Average emission factors for downstream processes required to transform the sold intermediate product into a final product, expressed in units of emissions (e.g., CO2, CH4, N2O) per unit of product (e.g., kg CO2/kg of final product).

How are Scope 3.10 emissions calculated in Climate Reporting?

Climate Reporting currently does not support Scope 3.10.

How are Scope 3.10 emissions displayed in Climate Reporting ?

App

Climate Reporting currently does not support Scope 3.10.

Report

Climate Reporting currently does not support Scope 3.10.