Scope 3.14: Franchises

Learn how the Greenhouse Gas (GHG) Protocol defines Scope 3.14 emissions, how the protocol recommends calculating them and how they are actually calculated in Climate Reporting

How are Scope 3.14 emissions defined in the GHG Protocol?

Scope 3.14 covers emissions from the operation of franchises (i.e., a business operating under a license to sell or distribute another company’s goods or services within a certain location) that the reporting company owns but does not operate. This category is applicable to franchisors (i.e., companies that grant licenses to other entities to sell or distribute their goods or services in return for payments, such as royalties for the use of trademarks and other services). Franchisors should account for emissions that occur from the operation of franchises (i.e., the Scope 1 and Scope 2 emissions of franchisees) in this category.

​​How does the GHG Protocol recommend calculating Scope 3.14 emissions?

Companies may use one of the following methods to calculate Scope 3.14 emissions, listed from highest to lowest accuracy: franchisee-specific and average-data method:

1. Franchisee-based method
   • This method involves multiplying primary activity data (actual energy or fuel consumption data provided by franchisees) by relevant industry-average emission factors, or directly collecting Scope 1 and Scope 2 emissions data from franchisees.
   • Possible activity data includes:
     1. Scope 1, Scope 2 and (optionally) Scope 3 emissions data from franchisees OR
     2. Site-specific fuel use, electricity use, and process and fugitive emissions activity data if applicable.
   • Possible data sources can include:
     1. Utility invoices, meter readings provided directly by franchisees
     2. Annual sustainability reports submitted by individual franchisees
   • Emission factors needed:
     1. Site-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 process emissions and fugitive emissions (e.g., refrigeration and air conditioning)
     3. Average upstream emission factors for energy sources per unit of consumption (e.g., kg CO2e/kWh). The emission factors should include upstream processes only.
2. Average-data method
   • This method involves multiplying secondary activity data (floor space, building type, asset type, etc.) by industry-average emission factors for the relevant activity data.
   • Possible activity data includes:
     1. Total floor area of all franchise locations OR
     2. Total number of operational franchise locations, by franchise type
     3. Assets owned and/or operated by the franchise
   • Possible data sources can include:
     1. National statistics published by government agencies.
     2. Industry bodies.
   • Emission factors needed:
     1. Average emission factors by floor space, expressed in units of emissions per area per time period (e.g., kg CO2e/m2/day)
     2. Average emission factors by building type, expressed in units of emissions per building per time period (e.g., kg CO2e/small office block/year)
     3. Emission factors by asset type, expressed in units of emissions per asset type per time period (e.g., kg CO2e/car/year)

How are Scope 3.14 emissions calculated in Climate Reporting?

Climate Reporting currently does not support Scope 3.14.

How are Scope 3.14 emissions displayed in Climate Reporting?

App

Climate Reporting currently does not support Scope 3.14.

Report

Climate Reporting currently does not support Scope 3.14.