Scope 3.13: Downstream leased assets

Learn how the Greenhouse Gas (GHG) Protocol defines Scope 3.13 emissions, how the protocol recommends calculating them and how they are actually calculated in Climate Reporting

How are Scope 3.13 emissions defined in the GHG Protocol?

Scope 3.13 covers emissions from the operation of assets that are owned by the reporting company (acting as lessor) and leased to other entities, provided these emissions are not already included in Scope 1 or Scope 2. This category is applicable to lessors (i.e., companies that receive payments from lessees).

Leased assets may be included in a company’s Scope 1 or Scope 2 inventory depending on the type of lease and the consolidation approach the company uses to define its organisational boundaries (see table below).

How does the GHG Protocol recommend calculating Scope 3.13 emissions?

Downstream leased assets differ from upstream leased assets in that the leased assets are owned by the reporting company. The availability and access to information depends on the type of asset leased. For example, a company that leases vehicles may need to request fuel or mileage data from lessees in order to calculate emissions.

The calculation methods are similar to those used for Scope 3.8 (Upstream leased assets). Therefore, as per the protocol, companies may use one of the following methods to calculate Scope 3.13 emissions, listed from highest to lowest accuracy: asset-specific, lessee-specific or average-data method.

1. Asset-specific method
   • This method involves collecting asset-specific fuel and energy use or Scope 1 and Scope 2 emissions data from the lessees.
   • Possible activity data includes:
     1. Asset-specific Scope 1 and 2 emissions data OR
     2. Asset-specific fuel and electricity, steam, heating and cooling use AND
     3. If applicable, data related to non-combustion emissions (i.e., industrial process or fugitive emissions).
   • Possible data sources can include:
     1. Lessee utility bills, asset-specific meter readings
     2. Lessee ERP system
     3. Lessee purchase records
   • Emission factors needed:
     1. Site or regionally specific emission factors for energy sources (e.g., electricity and fuels) per unit of consumption (e.g., kg CO2e/kWh for electricity, kg CO2e/liter for diesel)
     2. Emission factors of fugitive and process emissions
2. Lessee-specific method
   • This method involves collecting the Scope 1 and Scope 2 emissions from lessee(s) and allocating emissions to the relevant leased asset.
   • This method is to be used when the reporting company does not have specific asset-level data.
   • Possible activity data includes:
     1. Allocation share of asset (Total area/volume/quantity of the reporting company’s leased assets)
     2. Lessee’s Scope 1 and Scope 2 emissions
     3. Lessee’s total fuel use and electricity use
     4. If applicable, data related to non-combustion emissions (i.e., industrial process or fugitive emissions).
   • Possible data sources can include:
     1. Lessee lease agreements
     2. Lessee utility bills
     3. Lessee meter readings
     4. Lessee sustainability reports
   • Emission factors needed:
     1. Site or regionally specific emission factors for energy sources (e.g., electricity and fuels) per unit of consumption (e.g., kg CO2e/kWh for electricity, kg CO2e/liter for diesel)
     2. Emission factors of fugitive and process emissions
3. Average-data method
   • This method involves multiplying secondary data (such as building floor area, building type) by relevant industry-average emission factors.
   • The average-data method should be used when purchase records, electricity bills, or meter readings of fuel or energy use are not available or applicable.
   • Possible activity data includes:
     1. Floor space of each leased building
     2. Number of leased buildings, by building type (e.g., office, retail, warehouse, factory, etc.)
     3. Number and type of leased assets other than buildings that give rise to Scope 1 or Scope 2 emissions (e.g., company cars, trucks).
   • Possible data sources can include:
     1. Research papers
     2. National statistics databases
   • Emission factors needed:
     1. Average emission factors by floor space, expressed in units of emissions per square meter, square foot occupied (e.g., kg CO2e/m2/year)
     2. Average emission factors by building type, expressed in units of emissions per building (e.g., kg CO2e/small office block/year)
     3. Emission factors by asset type, expressed in units of emissions per asset (e.g., kg CO2e/car/year).

How are Scope 3.13 emissions calculated in Climate Reporting?

Climate Reporting currently does not support Scope 3.13.

How are Scope 3.13 emissions displayed in Climate Reporting?

App

Climate Reporting currently does not support Scope 3.13.

Report

Climate Reporting currently does not support Scope 3.13.