Scope 3.9: Downstream transportation and distribution

Learn how the Greenhouse Gas (GHG) Protocol defines Scope 3.9 emissions, how the protocol recommends calculating them and how they are actually calculated in Climate Reporting

How are Scope 3.9 emissions defined in the GHG Protocol?

Scope 3.9 covers emissions resulting from the transportation and distribution of sold products using vehicles and facilities that are not owned or controlled by the reporting company. Specifically, it includes emissions from transportation and distribution activities occurring after the product has been sold, as well as those from product retail and storage. Optionally, companies can include emissions from customers traveling to and from retail stores, which can be significant for businesses with retail operations.

Outbound transportation and distribution services that are purchased by the reporting company are excluded from Scope 3.9 and included in Scope 3.4 (Upstream transportation and distribution) because the reporting company purchases the service.

The reporting company’s Scope 3 emissions from downstream transportation and distribution will in turn be reflected in the Scope 1 and Scope 2 emissions of third-party transportation and distribution providers, retailers, and, optionally, customers.

​​How does the GHG Protocol recommend calculating Scope 3.9 emissions?

Companies may use the following methods to calculate Scope 3.9 emissions, listed from highest to lowest accuracy: fuel-based, distance-based or spend-based method. All three methods follow the same basic approach of collecting relevant activity data (such as fuel consumption, distance travelled, or money spent) and applying appropriate emission factors to calculate emissions. The calculation methods are similar to Scope 3.4, but the major difference is likely to be the availability and quality of activity data. Transportation data may be easier to obtain from upstream suppliers than from downstream customers and transportation companies.

1. Fuel-based method
   • This method involves multiplying physical activity data (fuel use data from transport service providers) with the emission factor of the fuel consumed (represented in grams or kilograms of CO2-equivalent per litre/kg of fuel).
   • This method is the most accurate as emissions are directly related to fuel consumption.
   • Possible activity data includes:
     1. Quantity of different fuels consumed OR
     2. Amount spent on different fuels together with their average prices OR
     3. Distance travelled and the vehicle’s fuel efficiency
     4. Quantities of fugitive emissions (e.g., from air conditioning or refrigeration)
   • Possible data sources can include:
     1. Fuel receipts
     2. Purchase records provided by transportation providers
     3. Internal transport management systems
   • Emission factors needed:
     1. Fuel emission factors, expressed in units of emissions per unit of energy consumed (e.g. kg CO2e/liter).
     2. For electric vehicles, electricity emission factors, expressed in units of emissions per unit of electricity consumed (e.g. kg CO2e/kWh).
     3. Fugitive emission factors, expressed in units of emissions per unit (e.g., kg CO2e/kg refrigerant leakage).
2. Distance-based method
   • This method involves multiplying distance (kilometers travelled by vehicle type) by mass or volume of goods transport and the relevant emission factor (expressed in grams of CO2e/tonne-km).
   • Downstream distance may not always be known. Therefore, companies may use government publications, online maps or published port-to-port travel distances, to estimate distances.
   • Possible activity data includes:
     1. Total distance travelled by each mode of transport
     2. Mass or volume of products
   • Possible data sources can include:
     1. Purchase orders
     2. Internal management systems
     3. Transportation suppliers
     4. Online maps or calculators
     5. Published port-to-port travel distances
   • Emission factors needed:
     1. Emission factor by mode of transport (e.g., rail, air, road) or vehicle types (e.g., articulated lorry, container vessel), expressed in units of kg CO2e per unit of mass or volume travelled (e.g. kg CO2e/tonne/km or kg CO2e/TEU/km).
3. Spend-based method
   • This method involves multiplying the amount spent on transportation by the relevant spend-based emission factor (expressed as grams or kilograms of CO2-equivalent per unit of currency).
   • Possible activity data includes:
     1. Amount spent on transportation by type (rail, road, air) in local currency
   • Possible data sources can include:
     1. Accounting systems, enterprise resource planning systems (ERP) of downstream customers
     2. Bills, invoices
   • Emission factors needed:
     1. Emission factors of the transportation type per unit of economic value (e.g. kg CO2e/NOK)

For emissions from downstream distribution and storage facilities, site-specific and average-data methods are commonly used.

1. Site-specific method
   • This method involves collecting physical activity data (fuel and electricity use data) from the distribution site and multiplying by relevant industry-average emission factors.
   • Possible activity data includes:
     1. Site-specific fuel, electricity use AND
     2. Site-specific refrigerant leakage AND
     3. Average occupancy rate of the storage facility
   • Possible data sources can include:
     1. Questionnaire sent to downstream distributors
   • Emission factors needed:
     1. Site-specific emission factors for energy sources (electricity and fuel) per unit of consumption (kg CO2e/kWh)
     2. Refrigerant emission factors of fugitive and process emissions (kg HFC/kg of refrigerant leakage)
2. Average-data method
   • This method involves multiplying secondary activity data (based on average statistics such as cubic metres stored per day) by relevant industry-average emission factors.
   • Possible activity data includes:
     1. Volume of purchased goods that are stored (e.g., m2, m3, pallet, or number of pallets needed to store the goods) AND
     2. Average number of days that goods are stored
   • Possible data sources can include:
     1. Supplier records
     2. Internal management systems
   • Emission factors needed:
     1. Emission factor per pallet stored in the facility
     2. Emission factor per m2/m3 in the facility
     3. Emission factor per TEU stored in the facility

How are Scope 3.9 emissions calculated in Climate Reporting?

Climate Reporting currently does not support Scope 3.9.

How are Scope 3.9 emissions displayed in Climate Reporting ?

App

Climate Reporting currently does not support Scope 3.9.

Report

Climate Reporting currently does not support Scope 3.9.