If you own buildings, machines or vehicles and lease them to others, your tenants run them and pay the energy bills. Their emissions are not in your Scope 1 and 2. The GHG Protocol still counts them in your Scope 3, in category 13, because you decide how efficient the assets are.
- Scope 3 category 13, downstream leased assets: emissions from running the assets that you own and lease to others, outside Scopes 1 and 2.
- For lessors only: if your company uses assets leased from others, they belong to category 8.
- Methods: the same as for category 8.
- Reduction: design and upgrade buildings to use less energy, and support tenants.
What does category 13 include?
Category 13 covers emissions from running the assets that the reporting company owns, if they are not included in Scope 1 or Scope 2.
This category applies only to lessors, that is, companies that receive payments from lessees. If your company uses leased assets, report them in category 8 (upstream leased assets).
For which companies does category 13 matter?
This category matters for companies that lease out their assets, that is, lessors.
This is the case above all in real estate, transport and manufacturing. These companies let others use buildings, machines or vehicles, but keep ownership.
Calculation methods
The calculation methods for category 13 are the same as for category 8 (upstream leased assets):
- Asset-specific method: for each leased asset, you collect data on the energy and fuel it used, or on its Scope 1 and 2 emissions.
- Lessee-specific method: you get Scope 1 and 2 data from the user of the asset and link it to the right asset.
- Average-data method: you estimate emissions for each asset, or group of assets, from average data. Examples are average emissions per type of asset or per square metre.
What are the main challenges in category 13?
The challenge in this category is to understand how lessees use the assets that your company owns.
Another difficulty is that you have no direct influence on how the assets are run. You may also have little access to data on their real energy or fuel use.
How to reduce emissions in Scope 3 category 13?
These steps help you cut emissions from leased assets:
- As an owner, make sure that buildings are designed to need little energy.
- Upgrade existing buildings to use less energy.
- Choose energy-efficient technology.
- Give lessees instructions or support on how to use the assets sustainably.
