Definition
This category includes emissions from the operation of assets leased by the reporting company in the reporting year (lessee) that are not already included in the reporting company's Scope 1 and Scope 2 emissions.
If the reporting company leases an asset for only part of the reporting year, it should include the emissions for the part of the year in which the asset was leased.
Accounting for upstream leased assets
There are basically three calculation methods. They are arranged in descending order of accuracy.
- Asset-specific method: Recording of asset-specific fuel and energy consumption data, data on process-related and fugitive emissions as well as data on Scope 1 and Scope 2 emissions from leased assets. The consumption data can be taken from invoices, meter readings or internal IT systems. Multiplication of the consumption data with location- or region-specific emission factors of the energy sources.
- Lessor-specific method: Collection of Scope 1 and Scope 2 emissions from lessors and allocation of these emissions to the leased assets. Multiplication of the consumption data with location- or region-specific emission factors of the energy sources.
- Average data method: Estimation of emissions for each leased facility and each leased building based on average data, e.g. based on the occupied area per facility type or the floor area of the building. Multiplication by the number of installations/buildings and by an average emission factor by area/building type or installation type.
Asset-specific method:
Required activity data:
- Plant-specific fuel, electricity, steam, heating and cooling consumption.
- If applicable, activity data related to non-combustion emissions (i.e. industrial processes or fugitive emissions).
Required emission factors:
- Site or region-specific emission factors for energy sources (e.g. electricity and fuels) per unit of consumption (e.g. kg CO2 e/kWh for electricity, kg CO2 e/liter for diesel).
- Emission factors for fugitive and process emissions.
For the optional calculation of emissions associated with the manufacture or construction of leased assets, companies should use life cycle emission factors that include manufacture and construction.
Lessor-specific method:
Required activity data:
- Total fuel and electricity consumption of the lessor
- Fugitive emissions of the lessor (e.g. from refrigerants)
- Process emissions of the lessor (if applicable).
Required emission factors:
- Location- or region-specific emission factors for energy sources (e.g. electricity and fuels) per unit of consumption (e.g. kg CO2 e/kWh for electricity, kg CO2 e/liter for diesel)
- Emission factors for fugitive and process emissions.
Average data method:
Activity data required:
- Estimated emissions based on occupied space by facility/building type (for leased buildings).
- Estimated emissions based on the number and type of leased facilities.
Emission factors required:
- Average emission factors by area expressed in units of emissions per square meter, square foot occupied (e.g., kg CO2 e/m2 /year)
- Average emission factors by building type, expressed in units of emissions per building (e.g., kg CO2 e/small office building block/year)
- Emission factors by type of installation, expressed in emission units per installation (e.g. kg CO2 e/vehicle/year)
Data acquisition
Data sources for activity data for the plant-specific method can be
- Utility bills
- Purchase records
- Meter readings
- Internal IT systems.
Data sources for activity data for the lessor-specific method can be
- Total area/volume/quantity of the lessor's assets
- Total area/volume/quantity of the reporting company's leased assets.
Data sources for activity data for the average data method can be
- Floor area of each leased building
- Number of buildings leased, broken down by building type (e.g. office, retail, warehouse, factory, etc.)
- Number and type of leased assets that are not buildings and result in Scope 1 or Scope 2 emissions (e.g. company car vehicles, trucks).
Accounting for upstream leased assets in the Climate Hub
There are no predefined activities 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 8: Upstream Leased Assets from page 94.