A restaurant or shop chain may run only a few outlets itself. The rest belong to franchisees, who pay for the brand and run the outlets on their own. Their energy use is not in the franchisor's Scope 1 and 2. The GHG Protocol puts these emissions in Scope 3 category 14.
- Scope 3 category 14, franchises: emissions from running franchises that are not in Scope 1 or Scope 2.
- Who it matters for: franchisors, above all in food service, retail and services.
- Methods: franchise-specific or average data.
- Reduction: give franchisees guidance and include sustainability rules in franchise agreements.
What does category 14 include?
Category 14 covers emissions from franchises that are not in Scope 1 or Scope 2.
It is mainly for franchisors. Franchisees also use it in one case. It is for operations they control but did not put in Scope 1 or 2, because of how they set their boundary. Franchisees may also report the franchisor's emissions in category 1 (purchased goods and services). This is optional.
For which companies does category 14 matter?
This category matters for franchisors. A franchisor lets other firms sell its goods or services under its brand, and they pay for it.
This is the case above all in restaurants, shops and services. There, the work of franchisees can cause a lot of emissions.
Calculation methods
You can calculate category 14 emissions with two methods:
- Franchise-specific method: you collect data for each site from franchisees, or their Scope 1 and 2 emission data.
- Average-data method: you estimate emissions for each franchise, or group of franchises, from average data. Examples are average emissions per type of franchise or per square metre.
Where do you find the data for this category?
You find the data for this category in:
- national statistics published by government agencies;
- industry bodies.
What are the main challenges in category 14?
The company may not get emission data from its franchisees.
This makes it hard to estimate the full carbon footprint. It is also harder to find where the whole network can cut the most emissions.
How to reduce emissions in Scope 3 category 14?
Give franchisees guidance on how to measure and reduce emissions.
Also add rules on the environment to your franchise contracts. They help franchisees act responsibly in their daily work.
