What is Scope 3 Category 8 Emissions?

Category 8 covers emissions from operating leased assets during the reporting year that aren't included in the reporting company's Scope 1 or Scope 2 emissions. This category applies to companies that use leased assets (i.e., lessees). For companies that own and lease assets to others (i.e., lessors), refer to Category 13 (Downstream leased assets).

Leased assets might be part of a company's Scope 1 or Scope 2 emissions, depending on the lease type and the company's consolidation approach for defining organizational boundaries. If a company leases an asset for only part of the reporting year, it should account for emissions during the time the asset was leased. Scope 3 emissions from upstream leased assets include the Scope 1 and Scope 2 emissions of lessors, depending on their consolidation approach.

What Data is Needed to Count Emissions?

To calculate emissions from upstream leased assets, you'll need the following data:

1. List of leased assets: Identify all the assets leased by your company during the reporting year.

2. Type of leases and consolidation approach: Determine the types of leases (e.g., operating leases, finance leases) and the consolidation approach your company uses to define its organizational boundaries. This information will help you understand which emissions are included in Scope 1 and Scope 2 and which are included in Scope 3.

3. Operational data: Obtain data on the energy consumption and resource use of the leased assets, such as electricity, fuel, heating, and cooling, for the period during which the assets were leased.

4. Emission factors: Acquire accurate emission factors for the different types of energy consumption and resources used by the leased assets. This data can be sourced from governmental or industry-specific guidelines, or from organizations like the Intergovernmental Panel on Climate Change (IPCC) and the World Resources Institute (WRI).

5. Lessors' emissions data: Collect Scope 1 and Scope 2 emissions data from the lessors, depending on their consolidation approach. This information may be available through public reports or direct communication with lessors.

Once you have collected this data, you can calculate your company's emissions from upstream leased assets by applying the relevant emission factors to the energy consumption and resource use data. Add up the emissions associated with the leased assets during the time they were leased to determine the total emissions from upstream leased assets for Scope 3.

What Methods is Available to Count the Emissions?

These methods are listed in order of how specific the calculation is to the individual kind of leased assets. However, companies need not always use the most specific method as a first preference.

1. Asset-specific method, which involves collecting asset-specific (e.g., site-specific) fuel and energy use data and process and fugitive emissions data or scope 1 and scope 2 emissions data from individual leased assets

2. Lessor-specific method, which involves collecting the scope 1 and scope 2 emissions from lessor(s) and allocating emissions to the relevant leased asset(s)

3. Average data method, which involves estimating emissions for each leased asset, or groups of leased assets, based on average data, such as average emissions per asset type or floor space.

Companies may also calculate the life cycle emissions associated with manufacturing or constructing leased assets.