Definition
This category includes emissions from the processing of sold intermediate products by third parties after sale by the reporting company. Intermediate products are products that must be further processed, transformed or incorporated into another product before use and therefore result in emissions from processing after sale by the reporting company and before use by the end consumer. These emissions from processing are allocated to the intermediate product.
Accounting for the processing of sold products
The site-specific or average data method can be used to calculate emissions from the processing of goods sold:
- Site-specific method: The amount of fuel and electricity consumed and the amount of waste generated in the processing of intermediate products sold is multiplied by an appropriate emission factor. The reporting company should either collect emissions data from downstream partners in the value chain or site-specific activity data from downstream processes.
- Average data method: Emissions are calculated based on average data, such as average emissions per process or product. The reporting company should collect data on the type of downstream process and then select an industry-standard emission factor.
Site-specific method:
Important for the site-specific method, where the amount of fuel and electricity consumed and the amount of waste generated from third-party processing of intermediate products sold is calculated, is the calculation of emissions from third-party processing of products sold. Companies should collect one of the following types of data from downstream partners in the value chain:
- Relevant activity data (e.g. fuel, electricity, refrigerant and waste consumption) and relevant emission factors for each downstream process
- GHG emission data for each downstream process calculated by the downstream value chain partners.
Activity data required:
Companies should first collect data on the type and quantity of intermediate products sold by the reporting company. Companies should then collect either site-specific GHG emissions data provided by downstream value chain partners or site-specific activity data from downstream processes, including:
- Amounts of energy (including electricity and fuels) consumed in the processes
- Where possible, mass of waste generated in the processes
- If applicable, activity data related to non-combustion emissions (i.e. industrial processes or fugitive emissions).
If data cannot be obtained from downstream third parties, the average data method should be used.
Emission factors:
- Emission factors for fuels
- Emission factors for electricity
- Where possible, emission factors for waste generation
- Where applicable, emission factors for non-combustion emissions (i.e. industrial processes or fugitive emissions).
Average data method
Required activity data:
- The process(es) involved in the transformation or processing of the intermediate products sold into a usable end product, subsequent to the sale by the reporting company.
- Information required for allocation (e.g. mass, economic value).
Emission factors:
- Average emission factors for the processing steps required to convert the sold intermediate into a final product, expressed in emission units (e.g. CO2, CH4, N2O) per unit of product (e.g. kg CO2/kg of final product).
Data collection
Data sources for activity data for the site-specific method include:
Companies should take data on the type and mass of intermediate products sold by the reporting company from internal records. Companies should collect either GHG emissions data or activity data from downstream processes from the downstream partners in the value chain that control these processes. Downstream partners can obtain this data from the following sources, for example:
- Internal IT systems
- Invoices from utility companies
- Purchase receipts
- Meter readings
Data sources for activity data in the average data method include:
- Records of purchases
- Internal data systems
- Industry average data from associations or databases.
Data sources for emission factors include:
- Life cycle databases
- The GHG Protocol website
- Companies or manufacturers
- Industry associations
Accounting for the processing of sold products in the Climate Hub
No predefined activities are stored in the Climate Hub. You can create new activities using the Add own activity button. You can find a detailed description here.
Further information can be found in the Technical Guidance for Calculating Scope 3 Emissions of the GHG Protocol in Chapter 10: Processing of Sold Products from page 106.