Definition
The disposal of sold products includes the expected emissions from the disposal and treatment of waste from sold products by the reporting company in the reporting year.
Accounting for the disposal of sold products
The calculation of emissions from the disposal of sold products is based on the same methods as the disposal of waste generated by the company. The main difference is that it is not the amount of waste generated in the business that is stated, but the mass of goods sold and their packaging. In addition, the calculation of emissions from the disposal of sold products requires assumptions about the end-of-life treatment methods used by consumers. The reporting company is obliged to describe these assumptions for the calculation of emissions. If intermediate products are sold, the company should take into account the emissions from the disposal of the intermediate product at the end of its life.
Data collection
When collecting data on total waste generation, the reporting company should collect data on the type(s) and quantities of waste from the sale of products through to disposal by consumers. This data should also include all packaging and product waste. For food and beverages, companies should refer to the average percentage of food/beverages wasted. In many cases, the total waste corresponds to the total amount of products sold in the reporting year. However, if the product is actually consumed (e.g. food and beverages), the total waste is likely to be lower, and in other cases, such as products incinerated for energy, it could even be close to zero.
To make appropriate assumptions about end-of-life treatment methods, companies can use the following tools:
- Company research and internal data on how products are treated after consumption.
- Specific government guidelines on the waste treatment of certain products
- Industry association studies on consumer disposal behavior for specific products
- Average data on waste treatment
Supplier-specific method
Emission factors required:
When using the supplier-specific method, the reporting company collects emissions data from waste treatment companies, so no emission factors are required (the company would have already used emission factors to calculate emissions).
Co2e emissions from end-of-life treatment of products sold:
∑ (Total mass of products and packaging sold from point of sale to end-of-life after consumer use (kg) × % of total waste treated by a waste treatment method × emission factor of the waste treatment method (kg CO2 e/kg))
Activity data required:
Average waste treatment specific emission factors based on all waste treatment methods.
Average data method
Activity data required:
- Total mass of waste generated in the facilities
- Proportion of this waste treated by different methods (e.g. percentage of waste landfilled, incinerated or recycled).
As many waste management companies charge for waste by disposal method, this data can be taken from utility bills. The information may also be stored in internal IT systems.
The emission reductions associated with recycling are due to two factors:
- The difference in emissions between the extraction and processing of virgin material and the processing of recycled material for reuse
- The reduction in emissions that would have resulted from landfill or other waste treatment.
Companies may encounter recycling in three circumstances, each of which is relevant to a different Scope 3 category. (Scope 12, 5, 1)
Accounting for the disposal of sold products in the Climate Hub
As the emissions resulting from the disposal of sold products depend on the company's products, there are no predefined categories in the Climate Hub. You can create your own categories using the Add your own activity button. You can find instructions here.
Further information can be found in the Technical Guidance for Calculating Scope 3 Emissions of the GHG Protocol in Chapter 12: End-of-Life Treatment of Sold Products from page 125.