Toolkit - BringAbout

Additional Tools

Tooltips

PPN 06/2 Carbon Reduction Plan
Streamlined Energy and Carbon Reporting (SECR)
Scope 1 – Fuel combustion in company owned facilities
Scope 1 – Fuel combustion in company owned vehicles
Scope 2 – Purchased electricity, Heat and Steam
Scope 2 – Company owned Electric vehicles
Scope 3 – Category 1 – Purchased goods and services
Scope 3 – Category 2 – Capital goods
Scope 3 – Category 3 – Fuel and energy related activities
Scope 3 – Category 4 – Upstream transportation and distribution
Scope 3 – Category 5 – Waste generated in operations
Scope 3 – Category 6 – Business travel
Scope 3 – Category 7 – Employee commuting
Scope 3 – Category 8 – Upstream leased assets
Scope 3 – Category 9 – Downstream transportation and distribution
Scope 3 – Category 10 – Processing of sold products
Scope 3 – Category 11 – Use of sold products
Scope 3 – Category 12 – End of life of sold products
Scope 3 – Category 13 – Downstream leased assets
Scope 3 – Category 14 – Franchises
Scope 3 – Category 15 – Investments

Carbon Reduction Plan

Carbon Reduction Plan (CRP) is a structured document outlining a strategy of a business or organisation which commits to contribute to the UK’s journey towards achieving Net Zero emissions by 2050 aligning with the UK’s decarbonisation pledge under the Climate Change Act 2008. The provision of CRP has become mandatory for all suppliers bidding for major government projects (in-scope procurements) which exceeds the value of £5 million per annum as dictated under the Procurement Policy Note (PPN) 06/21.

Carbon Reduction Plan must be developed by the supplier which is bidding for the contract in adherence to the requirements set out in the PPN 06/21 guidance and Greenhouse Gas Protocol’s Corporate Accounting and Reporting Standard. The following information must be disclosed in the CRP document and shared publicly on the reporting company’s website:

Official declaration of the supplier committing to achieve Net Zero targeted for a particular year and, at latest, by the year 2050.
Baseline Scope 1 and Scope 2 GHG emissions, measured in the same year, with the accompanied subset of a minimum of five explicit Scope 3 categories either reported for the same base year as for Scope 1 and Scope 2 or separately, including:

Category 4: Upstream transportation and distribution
Category 5: Waste generated in operations
Category 6: Business travel
Category 7: Employee commuting
Category 9: Downstream transportation and distribution

Scope 1, Scope 2 and Scope 3 (covering the same categories reported for the base year) GHG emissions for the current reporting year.
Consistent GHG emissions reduction target either for all Scopes 1, 2 and 3 or one separate target for the Scope 3 emissions
Outline of the actions both already taken and planned in order to achieve Net Zero by a specified target year.

For the official guidance on PPN 06/21, please click here.

Streamlined Energy and Carbon Reporting (SECR)

Streamlined Energy and Carbon Reporting (SECR) is a policy introduced by the UK government imposing mandatory reporting of the energy consumption and associated carbon emissions. The SECR aims to incentivise a larger number of businesses to commit to improving energy efficiency within their premises, recognising the economic advantages they could gain and emphasising their role in enhancing the quality of the natural environment.

From financial years beginning on or after 1 April 2019, large UK companies will be required to report publicly on their UK energy use and carbon emissions within their Directors’ Report. This new requirement has been implemented by the Department for Business, Energy and Industrial Strategy (BEIS).

SECR will impact any companies, LLPs and groups that exceed at least two of the following three thresholds in the financial year:

£36m annual turnover
£18m balance sheet total
250 employees

For businesses meeting the above criteria, company or group reporting is required regardless of whether an overseas parent company or group has published a similar report. A group may however exclude any energy and carbon information relating to any subsidiaries which would not be obliged to report individually according to the thresholds.

Companies developing a SECR are required to adhere to distinct reporting requirements for the current and previous financial years based on their classification:

Quoted companies are required to disclose:

Total Scope 1 and Scope 2 GHG emissions generated by the entire business;
Emission intensity ratio of their own choice;
Total energy use by the entire business (only for the current reporting year);

Unquoted large companies and large LLPs are required to disclose:

Total energy use from the business’ premises and directly operated transport in the UK
GHG emissions related to the total energy use.

It is also an obligation for each company to include a description of the actions taken to improve energy efficiency, methods used to measure and calculate energy use as well as associated emissions and optional disclosure of the Scope 3 emissions which is highly encouraged.

For official guidance on Streamlined Energy and Carbon Reporting , click here.

Scope 1 – Fuel combustion in Company Owned Facilities

Fuel combustion in company owned facilities refers to the burning of fuels such as natural gas, propane, gasoline, or diesel to generate heat, steam, electricity, mechanical power or to power equipment at sites owned or controlled by the reporting company or business. These emissions are directly produced on-site. It could be solid fuel, liquid fuel, gaseous fuel, biofuel, biomass, biogas, refrigerants, etc.

This includes emissions from:

Combustion in boilers, furnaces, turbines, or generators.
Emissions resulting from manufacture or processing of chemicals and materials.
Power plants operated by the reporting company/business.
Emissions resulting from intentional or unintentional releases such as equipment leaks, refrigerant leaks, etc.

Common fuels include natural gas, oil, coal, or other combustible materials used for heating, electricity generation and various industrial applications.

Calculation Methods:

Emissions are calculated by multiplying the amount of fuel consumed (e.g., litres, kg etc.) with the relevant emission factor corresponding to them.

Data Required:

The type and amount of fuel consumed (e.g., kg, litres etc.).

These data can usually be found in fuel purchase records or fuel consumption meters for accurate data. The use of Continuous Emission Monitoring Systems can help users get much more accurate primary activity data. They can also be obtained from bills and receipts from suppliers of fuels used for consumption.

Emission Factors:

Emission Factors for the various types of fuels used are obtained from the UK Government GHG Conversion Factors Sheet and are inbuilt into the tool to calculate the emissions under this category.

Scope 1 – Fuel Combustion in Company Owned Vehicles

Fuel Combustion in company owned vehicles refer to the process by which fuels such as gasoline or diesel are burnt within the internal combustion engines of vehicles owned or controlled by the reporting company or business. Fuels used for the combustion could include gasoline, petrol, diesel, CNG, LPG, etc.

This includes emissions from all company owned vehicles (passenger vehicles, delivery vehicles) except vehicles running on purchased electricity, such as EVs and PHEVs.

Calculation Methods:

Emissions are calculated by multiplying the data on the distance travelled (miles) by a vehicle by the emission factors relevant to that vehicle type (kgCO₂e/miles).

Data Required:

The type of the vehicle used (i.e., small car – diesel, average car – LPG etc.) according to the classification provided in the government’s GHG Conversion Factors Sheet.
The number of vehicles in the company’s fleet.
The distance travelled per vehicle type (miles). Distance travelled by the vehicles can be obtained from the odometer of the vehicles used. This can help the user to get an accurate measure of the distance travelled by the vehicle.

Emission Factors:

Emission Factors expressed in kgCO₂e/miles for the various types of vehicles used are obtained from the UK Government GHG Conversion Factors Sheet and are inbuilt into the tool for calculation of emissions under this category.

Additional calculation tools:

BringAbout offers users free access to the additional calculation tools, supporting companies to efficiently gather activity data suitable for the input into the tool. The link can be found below:

Distance calculation tool enables user to calculate total distance travelled (miles) per each vehicle type owned and used by the reporting company.

Scope 2 – Emissions resulting from the purchase of electricity, heat, and steam

Emissions resulting from the purchase of electricity, heat and steam represent the indirect GHG emissions associated with the consumption of these forms of energy. The emissions can be from power plants that burn fossil fuels, biomass, etc., to generate electricity. District heating systems that burn fossil fuels to provide heating for the buildings of the reporting company/business is also included here.

Calculation Methods:

Location-based method: Emissions are calculated by multiplying an emission factor (kgCO₂e/kWh) associated with the geographical location of the energy supplier with the annual electricity consumption (kWh).
Market-based method: This method uses market-based emission factors (kgCO₂e/kWh) provided by the supplier, and it considers the specific attributes of the purchased energy especially if renewable energy is part of the fuel mix. Either supplier-specific, supplier-based fuel-mix factor or residual mix factor is subsequently multiplied by the amount of electricity consumed (kWh).

Data Required:

The annual consumption of electricity (kWh) by the business/company and whether the electricity is purchased from the grid.
The Supplier information along with the supplier-specific emission factors.
The annual consumption, if any, of heat and steam and what type of heat and steam is used.
Market-based emission factors can be obtained from the purchase of Renewable Energy Certificates (RECs) or Guarantees of Origin (GOs).

The market-based method might be more accurate in calculating emissions relative to location-based method as it considers the fuel mix used for generating electricity.

Emission Factors:

Location-based method: Emission factor for the purchased electricity from the grid is derived from the average emission of the UK electricity grid (kgCO₂e/kWh) obtained from the UK Government GHG Conversion Factors Sheet and is already incorporated into the tool.
Market-based method: Emission factors (kgCO₂e/kWh) used are either supplier-specific emission factors provided by the supplier in the contracts or purchased certificates, supplier-based fuel-mix factors related to the specific energy supplier, or residual mix factor. Apart from the supplier-specific emission factor which can only be obtained directly from the supplier, the remaining emission factors are obtained from the GHG Conversion factors Sheet and is already incorporated into the tool.

Scope 2 – Company Owned Electric Vehicles

Emissions from vehicles that are owned or controlled by the company/business and are powered by electricity purchased by the company. This includes emissions produced during the generation of electricity consumed to charge the electric vehicle at the company premises.

Calculation Methods:

Location-based method (in case of public charging): Emission factor for the purchased electricity from the grid is derived from the average emission of the UK electricity gird (kgCO₂e/kWh) obtained from the UK Government GHG Conversion Factors Sheet and is multiplied by the amount of electricity consumed (kWh) within the reporting year by the company.
Distance-based method: Vehicle-specific emission factor of the EV (company owned) (kgCO₂e/miles) is multiplied by the distance travelled by it (miles).

Data Required:

The number and type of EVs owned by the company.
The distance travelled by the EVs (miles).
The amount of electricity, if any, used to charge the EVs using public charges not included in the company’s electricity bills (kWh).

The amount of electricity consumed can be obtained from the company’s electricity bill or from receipts which are obtained when the company owned EVs are recharged in public charging stations.

Emission Factors:

Location-based method: Emission factor for the purchased electricity from the grid is derived from the average emissions of the UK electricity grid (kgCO₂e/kWh), which is obtained from the UK Government GHG Conversion Factors Sheet and is already incorporated into the tool.
Distance-based method: The Emission factors for the specific EV (kgCO₂e/miles) used can be obtained from the UK Government GHG Conversion Factors Sheet and are already incorporated into the tool.

Additional calculation tools:

BringAbout offers users free access to the additional calculation tools, supporting companies to efficiently gather activity data suitable for the input into the tool. The link can be found below:

Distance calculation tool enables user to calculate total distance travelled (miles) per each vehicle type owned and used by the reporting company.

Scope 3: Category 1: Purchased Goods and Services

Emissions associated with the activities related to the life cycle of the products and services purchased by the reporting company. This category encompasses all upstream (i.e., cradle-to-gate) emissions from the transportation of raw materials to the tier 1 supplier, the processing of raw materials to manufacture the product and the waste generated during the process of manufacturing the product.

Calculation Methods:

Supplier-specific method: This is the most accurate method as it multiplies the mass or units of purchased products (tonnes) or services with the supplier-specific emission (cradle-to-gate) factor for that specific product or service (kgCO₂e/tonnes).
Average-data method: This method requires the mass of purchased products (tonnes) to be multiplied by the relevant average cradle-to-gate emission factor associated with this product (kgCO₂e/tonnes).
Spend-based method: This method is the least accurate method and should only be used when the supplier-specific or average-data methods are not feasible to use. Emissions are calculated by multiplying amount spent on purchased product or service (£) based on the market value of the product type with the relevant cradle-to-gate emission factor per British pound (kgCO₂e/£).
Allocation method: Emissions are calculated by multiplying total Scope 1 and Scope 2 emissions (kgCO₂e) generated by the supplier with the allocated proportion of the products purchased by the reporting company from the supplier, relative to the total production output of that supplier. The type of allocation can include mass (tonnes), volume (m³), energy content (joules), chemical composition (moles) or market value (£) of a product, or the number of product units purchased.

Data Required:

Supplier-specific method: The supplier information along with the supplier-specific emission factors and the information on the data assurance or verification and type achieved should also be disclosed by the supplier in the questionnaire if provided.
Supplier-specific and Average-data method: The mass or units of purchased products or service (tonnes) which can be collected from the supplier’s bills or purchasing records.
Spend-based method: The amount spent on the purchased products or services according to the relevant market value (£) which can be collected form the reporting company’s bills, purchasing records or supplier’s website.
Allocation method: Total Scope 1 and Scope 2 emissions (kgCO₂e) of the supplier along with the information on the products purchased from the supplier and supplier’s total output expressed using any of the following allocation methods: mass (tonnes), volume (m³), energy content (joules), chemical composition (moles) or market value (£) of a product, or the number of product units purchased.

Emission Factors:

Supplier-specific method: Cradle-to-gate emission factors (kgCO₂e/tonnes) for the specific products purchased can be requested directly from the supplier via a questionnaire.
Average-data method: The average cradle-to-gate emission factors (kgCO₂e/tonnes) for different product types are obtained from secondary sources including the UK Government GHG Conversion Factors Sheet which is inbuilt into the tool for calculation of emissions under this method.
Spend-based method: The emission factors can be obtained from either industry associations or environmentally extended input-output (EEIO) databases which includes the one incorporated into the tool, namely spend-based emission factors (kgCO₂e/£) provided by DEFRA (2020).

Additional calculation tools:

BringAbout offers users free access to the additional calculation tools, supporting companies to efficiently gather activity data suitable for input into the tool. The link can be found below:

Weight and amount spent on the purchased products and services calculation tool enables user to calculate the total weight per each product type and amount spent on the good categorised using the Standard Classification System (SIC).

Scope 3: Category 2 – Emissions from Capital Goods

GHG emissions associated with the manufacturing, transportation, and disposal of the capital goods that the reporting company acquires. This category encompasses all upstream (i.e., cradle-to-gate) emissions from the transportation of raw materials to the tier 1 supplier, the processing of raw materials to manufacture a capital good and the waste generated during the process of manufacturing the capital good.

Calculation Methods:

Supplier-specific method: This is the most accurate method as it multiplies the quantity of capital goods purchased (tonnes) with the supplier-specific emission (cradle-to-gate) factor for that specific good.
Spend-based method: This method is the least accurate method and should only be used when the supplier-specific or average-data methods are not feasible to use. Emissions are calculated by multiplying the amount spent on a capital good (£) based on the market value of the good type with the relevant cradle-to-gate emission factor (kgCO₂e/£).
Allocation method: Emissions are calculated by multiplying total Scope 1 and Scope 2 emissions (kgCO₂e) generated by the supplier with the allocated proportion of the capital goods purchased by the reporting company from the supplier, relative to the total production output of that supplier. The type of allocation can include mass (tonnes), volume (m³), energy content (joules), chemical composition (moles) or market value (£) of a capital good, or the total unit of capital goods purchased

Data Required:

Supplier-specific method:
- The supplier information along with the supplier-specific emission factors and the information on the data assurance or verification and type achieved should also be disclosed by the supplier in the questionnaire if provided.
- The quantity of capital goods (tonnes) purchased which can be collected from the reporting company’s bills or purchasing records.
Spend-based method: The amount spent on the capital goods according to the relevant market value (£) which can be obtained from the supplier’s bills or purchasing records.
Allocation method: Total Scope 1 and Scope 2 emissions (kgCO₂e) of the supplier along with the information on the capital goods from the supplier and supplier’s total output expressed using any of the following allocation methods: mass (tonnes), volume (m³), energy content (joules), chemical composition (moles) or market value (£) of a good, or the number of units purchased.

Emission Factors:

Supplier-specific method: Cradle-to-gate emission factors (kgCO₂e/tonnes) for the specific capital good purchased can be requested directly from the supplier via the questionnaire.
Spend-based method: The emission factors can be obtained from either industry associations or environmentally extended input-output (EEIO) databases which includes those incorporated into the tool, namely spend-based emission factors (kgCO₂e/£) provided by DEFRA (2020).

Additional calculation tools:

BringAbout offers users free access to the additional calculation tools, supporting companies to efficiently gather activity data suitable for input into the tool. The link can be found below:

Weight and amount spent on the capital goods calculation tool enables user to calculate the total weight per each product type and amount spent (£) on the goods categorised using the Standard Classification System (SIC).

Scope 3: Category 3 – Fuel and energy Related Activities

Emissions from the extraction, production, and transportation of fuel and energy purchased or acquired by the reporting company which are not included in Scope 1 and 2.

WTT or Well-to-Tank emissions are the GHG emissions from the production, transportation, transformation, and distribution of the fuel.

The emissions included in this category are:

WTT emissions from the different fuel types used by the reporting business.
WTT emissions from company owned passenger vehicles and company owned delivery vehicles.
WTT(Generation) emissions from purchased electricity, heat, and steam.
T&D emissions from purchased electricity, heat, and steam.
WTT(T&D) emissions from purchased electricity, heat, and steam.
T&D emissions from company owned electric vehicles.

Calculation Methods:

Average-data method: This method involves multiplying the amount of fuel or energy consumed (e.g., kg, litres, kWh etc.) by the reporting company with the WTT emission factors (e.g., kgCO₂e/kWh, kgCO₂e/tonnes) which are already incorporated into the tool. This method is easier to implement as it uses readily available data, but it might be less accurate as it does not consider the specific practices of the suppliers.

Data Required:

Under this category there will be no emission queries, i.e., the user will not have to input any data in the tool to calculate emissions. If the user wishes to report emissions under this category the tool will automatically fetch relevant data from the previous inputs by the user for the calculation of Scope 1 and Scope 2 emissions as mentioned above.

Emission Factors:

The emission factors necessary for this category will include the WTT emissions and T&D losses associated with various Scope 1 and Scope 2 activities.

The Emission Factors considered include:

WTT EF from the different fuel types used by the reporting business (kgCO₂e/litres; kg; kWh).
WTT EF from company owned passenger and company owned delivery vehicles (kgCO₂e/miles).
T&D EF for company owned electric vehicles.
WTT (Generation) EF from purchased electricity, heat, and steam (kgCO₂e/kWh).
T&D EF for purchased electricity, heat, and steam (kgCO₂e/kWh).
WTT (T&D) EF for purchased electricity, heat, and steam (kgCO₂e/kWh).

WTT emission factors for different product types are obtained from secondary sources such as the UK Government GHG Conversion Factors Sheet which are inbuilt into the tool for calculation of emissions under this method.

Scope 3: Category 4 – Upstream Transportation and Distribution

Emissions from the transportation and distribution of goods between a company’s tier 1 suppliers and its own operations that are purchased by the reporting company during the reporting year. It relates to the emissions from the vehicles and facilities that the reporting company does not own or operate, as well as from other transportation and distribution services that the reporting company acquired during the reporting year e.g.: Air transport, Rail transport, Road transport, Marine transport, and Storage of purchased products in warehouses, distribution centres and retail facilities. This covers both inbound and outbound logistics, but it does not include energy or fuel products.

Calculation Methods:

For Upstream Transportation:

Distance-based method: This method involves multiplication of the mass of the goods transported (tonnes), distance travelled by the specific mode of travel (miles) with mass-distance emission factor (kgCO₂e/tonne-km) for the type of vehicle used.
Spend-based method: This method multiplies amount of money spent on each mode of transport used to transport the purchased goods (£) with secondary (EEIO) emission factors (kgCO₂e/£). Businesses should use the spend-based method to determine transportation-related emissions if the distance-based methods are not applicable. The distance-based approach is advised for accounting for the transport emissions, while the spend-based method is efficient for screening but has a high degree of uncertainty.

For Upstream Distribution:

Site-specific method: Emissions are calculated by multiplying fuel and electricity use (e.g., litres, kg etc.) and fugitive emissions (e.g., air conditioning or refrigerant leakage) specific to the storage facility used by the reporting company, with the corresponding fuel and electricity-specific emission factor for the fuels used, electricity consumed and fugitive emissions (e.g., kgCO₂e/litres, kgCO₂e/kWh etc.). If the storage facility space is shared with other companies, the fuel and electricity use should be proportionally allocated to the reporting company based on the volume of stored goods by the reporting company relative to the total volume stored goods in the specific facility.
Average-data method: This method involves estimating emissions for each distribution activity using the goods-specific emission factor purchased by the reporting company and stored in the storage facility which is multiplied by the volume of goods stored in the storage facility per year (m², m³, pallet, TEU (twenty-foot equivalent unit)) and average number of days per year that the goods are stored there.

Data Required:

For Upstream Transportation:

Distance-based method:
- The mass of the products purchased by the reporting company and transported (tonnes) which can be obtained from the purchase orders to suppliers, internal management systems, supplier’s website, or industry associations.
- The mode of transportation (e.g., van, HGV, plane, train etc.) and the actual distances travelled (miles) to transport reporting’s company goods which can be provided by the transportation supplier (shortest theoretical distance to be used if the actual distance is not available). This can be found via online maps or calculators, published port-to-port travel distances, or specific carriers or mode operators.

Spend-based method: The type of transportation service used to transport goods (e.g., road, rail, air) along with the amount of money spent on the transportation using market values (£) derived from the financial accounting systems, bills, or invoice payments.

For Upstream Distribution:

Volume of purchased goods that are stored (e.g., m², m³, pallet, TEU (twenty-foot equivalent unit)) in the storage facility per day obtained from the internal data systems (e.g., financial accounting systems), bills or invoices.
Site-specific method: Total fuel and electricity consumption along with the fugitive emissions from the storage facility (e.g., kgCO₂e/litres, kgCO₂e/kWh etc.). If storage is a shared space, the consumption should be allocated to the reporting company based on its proportion of the total volume of the goods stored in the storage facility.
Average data method:
- Average number of days per year that goods are stored in the storage facility obtained from the internal data systems (e.g., financial accounting systems), bills or invoices.
- Goods-specific emission factor purchased by the reporting company and stored in the storage facility (e.g., kgCO₂e/m³/day, kgCO₂e/m²/day, kgCO₂e/pallet/day, kgCO₂e/TEU/day).

Emission Factors:

For Upstream Transportation:

Distance-based method: Average mass-distance emission factors relevant to the specific transport type (e.g., van, HGV, plane, train etc.) used to transport purchased goods derived from the secondary sources including from the UK Government GHG Conversion Factors Sheet which are inbuilt into the tool for the calculation of emissions under this method.
Spend-based method: Cradle-to-gate environmentally extended input-output (EEIO) emission factors for the relevant mode of transport used to transport the purchased goods per unit of economic value (e.g., kg CO₂e/£) which can be accessed via various EEIO databases such as the one incorporated into the tool (kgCO₂e/£) provided by DEFRA (2020). Wherever applicable, inflation rate must be considered to convert market values from the year for which the EEIO emissions factors are available and are different to the reporting year.

For Upstream Distribution

Site-specific method: Emission Factors for the various types of fuels used and electricity consumed(e.g., kgCO₂e/litres, kgCO₂e/kWh etc.) are obtained from the UK Government GHG Conversion Factors Sheet and are inbuilt into the tool to calculate the emissions under this category.
Average-data method: Emission factors can be either expressed per pallet per day stored in facility (kgCO₂e /pallet), per square meter (kgCO₂e/m²) or cubic meter per day stored in facility (kgCO₂e/m³) or per TEU (twenty-foot equivalent unit) stored in facility (kgCO₂e/TEU). These emission factors can be either supplier-specific derived from company records or industry-average emission factors derived from academic publications, life cycle databases or industry associations. For the access to the industry-average emission factors, please refer to the PCAF European building emission factor database.

Additional calculation tools:

BringAbout offers users free access to the additional calculation tools, supporting companies to efficiently gather activity data suitable for input into the tool. The link can be found below:

Distance travelled by upstream transportation and amount spent on the transportation calculation tool enables user to calculate the total distance travelled (miles) by different modes of transport and the total amount spent (£) by the reporting company on transportation services used to transport purchased and sold products and services.

Scope 3: Category 5 – Waste Generated in Operations

Emissions associated with the third-party disposal and treatment of waste generated during the operations of the reporting company. This includes waste generated in the manufacturing processes, office operations or any other activity of the business. This category also includes the emissions from the disposal and treatment of both solid and wastewater as well as supply of the water to the reporting company.

The different types of waste or waste streams include municipal solid waste, commercial and industrial waste, construction and demolition waste, liquid waste, and hazardous waste.

The emissions under this category include:

Emissions from the waste disposal and treatment including landfill, incineration, recycling, composting or anaerobic digestion.
Emissions from the transportation of waste from the business location to waste treatment or disposal facilities.
Emissions associated with the water supplied to the company and the wastewater generated.

Calculation Methods:

For waste:

Supplier-specific method: Emissions are calculated by multiplying total Scope 1 and Scope 2 emissions (kgCO₂e) generated by the supplier with the allocated proportion of reporting company’s waste (tonnes) sent and treated by the waste treatment company, relative to the total waste treated (tonnes) by that waste treatment company. It involves working closely with suppliers to collect primary activity data about the emissions. This method provides the most accurate emissions.
Waste-type-specific method: This method involves using emission factors for specific waste types and waste treatment methods (kgCO₂e/tonnes) to be multiplied by the total quantity of the specific waste generated (tonnes). This method is used when the reporting company can differentiate between the waste it generates along with the quantity of each type of waste generated.
Average-data method: Emissions are calculated by using an average emission factor calculated for the standard disposal method for a specified waste stream in the tool (e.g., general waste, recycle waste, garden waste ,etc) (kgCO₂e/tonnes) and multiplied by the total waste generated by the reporting company per specific disposal method and waste type (tonnes). This method is often preferable when the type of waste produced is unknown. This method requires the reporting company to calculate the amount of waste going to each disposal method.

Data Required:

Supplier-specific method: The total quantity of waste generated by the company (tonnes) by the specific waste type and treatment method and total waste (tonnes) treated by the waste treatment company along with the total Scope 1 and Scope 2 emissions (kgCO₂e) provided by that waste treatment company. The allocation of the proportion of the reporting company’s waste relative to the total waste treated by the reporting company must be calculated for the purpose of this method.
Waste-type-specific method: The total quantity of waste (tonnes) generated by the company along with the different waste stream and standard disposal method if using average-data method. Waste-type-specific emission factors (kgCO₂e/tonnes) for different waste types are incorporated into the tool.
Average-data method: The total quantity of waste generated (tonnes) by the reporting company categorised into the specific waste stream along with the standard waste treatment method used for each. Average-data emission factors (kgCO₂e/tonnes) for each combination of waste stream and relevant disposal method are already built into the tool.

Most of the data will be available from the waste disposal companies such as waste disposal methods and total waste generated by the facility. Total quantity of waste generated by the reporting company and different waste streams can be obtained from the reporting company itself. All emission factors for waste-type-specific method and average-data (kgCO₂e/tonnes) method are already inbuilt into the tool.

Additional calculation tools:

BringAbout offers users free access to the additional calculation tools, supporting companies to efficiently gather activity data suitable for input into the tool. The link can be found below:

Amount of waste generated calculation tool is designed to estimate the amount of waste (tonnes) under each type (General vs Recycled) based on the type of building used for the business.

Scope 3: Category 6 – Business Travel

Emissions associated with employee travel for business purposes using vehicles not owned or controlled by the reporting company. This category covers the emissions from air, rail, bus, sea, automobile travel and other modes of travel in vehicles which are not owned by the reporting company such as trains, coaches, aircrafts etc.

Calculation Methods:

Distance-based method: Emissions under this approach are calculated by multiplying annual distance travelled (miles) travelled by the specific type of vehicle for the purpose of business-related activities for the current reporting year with the corresponding emission factor (kgCO₂e/vehicle-miles, kgCO₂e/passenger-kilometre) for specific type of the vehicles (e.g., train, bus, plane, taxi, employee’s car etc.) used for this travel.
Spend-based method: Spend-based method is the least accurate method and is advised to be used only if the data on distance travelled is not available. Under this method, emissions are calculated by multiplying the amount spent (£) on the specific transportation service (i.e., land, rail, air, or water transport services) with the emission factor specific to the transportation service used (kgCO₂e/£).

Data Required:

Distance-based method: The specific types of passenger vehicles (e.g., small car – diesel, motorbike – medium etc.) or vehicles from transport providers (e.g., average local bus, national rail etc.), along with the records on the countries travelled to. The relevant data may be obtained by conducting annual surveys/questionnaires with employees, or by automatically tracking the distance travelled (miles) by the vehicle for the business purposes through travel agencies or any other travel providers, internal expense, and reimbursement systems. GHG emissions data can be also directly obtained from the travel providers in some cases.

Sampling may be used in circumstances where the number of employees travelling in a given reporting year is too large, and extrapolation from a representative sample of employees to the total business travel of all employees needs to be performed. Common sampling methods available to companies include simple random, systematic, or stratified sampling. The company may also apply grouping or combining data from the employees with similar business travel profiles.

Spend-based method: The amount spent (£) on the transportation service used for the business travel can be obtained from the reporting company’s bills, invoice payments, or internal data systems such as financial accounting systems.

Emission Factors:

Distance-based method: Emission factors, obtained from the UK Government GHG Conversion Factors Sheet, have been incorporated into the tool for specific passenger vehicle types (kgCO₂e/miles) or vehicles from transport providers (kgCO₂e/passenger-km) used for the business travel.
Spend-based method: The corresponding cradle-to-gate EEIO emission factors for the type of transportation per unit of economic value (kgCO₂e/£) are provided by DEFRA (2020) and are already incorporated into the tool. Inflation rate factors were applied to convert market values between the year for which EEIO data was available and other reporting years for which associated EEIO data is unavailable.

Hotel stay:

It is optional for companies to report on emissions related to hotel stays by the travelling employees.

By country of stay, number of nights of stay and rooms booked: This method uses emission factors incorporated into the tool for specific countries where the hotels are located, by employees during business trips (kgCO₂e/room per night) which is obtained from the UK Government GHG Conversion Factors Sheet. For the emissions calculation associated with this stay, the country-specific emission factor is multiplied by the number of nights stayed in the hotel and number of hotel rooms booked for that stay.
By amount spent on the hotel stay: This method is less accurate method and is advised to be used only if either of the data on country of stay, number of nights stayed, or rooms booked is not available. Emissions are calculated by multiplying the amount spent (£) on the hotel stay with the emission factor for the accommodation services (kgCO₂e/£). This emission factor is a spend-based emission factor (kgCO₂e/£) provided by DEFRA (2020) and is already incorporated into the tool.

Additional calculation tools:

BringAbout offers users free access to the additional calculation tool, supporting companies to efficiently gather activity data suitable for input into the tool. The link can be found below:

Distance calculation tool enables user to calculate the total distance travelled (miles) for each vehicle type by utilising data logged by travelling employees for the business purposes.

Scope 3: Category 7 – Employee Commuting

Emissions arising from the vehicles used by employees commuting to the workplace in vehicles not owned or controlled by the reporting company falls under this category. It covers the emissions from employees’ use of automobile, bus, rail, air, or other transport services not owned by the reporting company to commute to work. GHG emissions related to the teleworking where employees work from home can also be accounted for in this category, if applicable.

Calculations Methods:

Distance-based method: The activity data on the total distance (vehicle-miles; passenger kilometre) travelled by the employees during the reporting year by specific modes of transportation (e.g., bus, train, metro, car etc.) must be collected and multiplied by the emission factor corresponding to that type of transport (kgCO₂e /miles; kgCO₂e/passenger-km).
Average-data method: This method is less accurate and should only be used in circumstances when company-specific, primary activity data is unavailable. The emission calculation requires primary data on the total number of employees in the company to be multiplied by the average, secondary data on the average proportion of the employees (%) using specific modes of transport, number of operational weeks worked by the reporting company per year, average distance travelled by an average employee per year (vehicle-miles; passenger-kilometre) per specific transport mode (e.g. bus, train, metro, car etc.) used by the employee along with the vehicle-specific emission factor corresponding to the transport mode used (kgCO₂e/vehicle-miles; kgCO₂e/passenger-km).

Data Required:

Distance-based method:
- Vehicle type (e.g., bus, train, metro, car etc.) used for commuting.
- Distance travelled by employees per day (miles).
- Average number of commute days per week.
- Average number of days worked from home per week.
- Annual operational duration of the reporting company per year (in weeks).

The relevant data can be acquired through surveys with employees or data logging spreadsheets to record commuting habits of all employees or can be sampled for a representative group of employees. Sampling may be used in circumstances where the number of employees commuting in a given reporting year is too large, and extrapolation from a representative sample of employees to the total employee commuting number should be performed. Common sampling methods available to companies include simple random, systematic, or stratified sampling. The company may also apply grouping or combining data from the employees with similar employee commuting profiles.

Average-data method:
- Total number of employees working in the reporting company.
- Industry-average percentage of the employees using specific transport modes (%).
- Industry-average distance travelled by an average employee per year (vehicle-miles; passenger-kilometre) by average transport mode used (e.g., bus, train, metro, car etc.).
- Annual operational duration of the reporting company (in weeks).

Secondary data can be collected from sources such as national transportation departments, ministries or agencies, national statistics publications, and/or industry associations.

Emission Factors:

Emission factors, obtained from the UK Government GHG Conversion Factors Sheet, have been incorporated into the tool for the specific passenger vehicle types (kgCO₂e/miles) or vehicles from transport providers (kgCO₂e/passenger-km) used for employee commuting in both methods.

Additional calculation tools:

BringAbout offers users free access to the additional calculation tools, supporting companies to efficiently gather activity data suitable for the input into the tool. The link can be found below:

Distance calculation tool enables user to calculate total distance travelled (miles) per vehicle type based on data logged by each employee commuting to the workplace
Employee Sampling tool enables users to sample a large number of employees for the calculation of the total distance travelled (miles) per vehicle type. This is based on the data logged by the sampled portion of employees commuting to the workplace.

Scope 3: Category 8 – Upstream Leased Assets

Emissions associated with the operation of assets that the reporting company leased during the reporting year and that were not already included in Scope 1 or Scope 2 inventories are included in Scope 3, Category 8. This category is exclusive to businesses that manage leased property, or lessees.

Calculations Methods:

Asset-specific method: This method involves using Scope 1 and Scope 2 emissions data (kgCO₂e) for individual leased assets by using asset-specific (e.g., site-specific) fuel and energy consumption data, along with process and fugitive emissions data (e.g., litres, kg etc.), and corresponding fuel-specific emission factor (e.g., kgCO₂e/litres etc.). Asset-specific method is the most accurate one as it uses the direct fuel and energy use, which has the emission factors listed and accounts for the fugitive emissions (e.g., refrigerant leakage, etc).

For more details on the emissions calculation relevant to this method, please refer to the tabs on Scope 1 and Scope 2.

Lessor-specific method: This method involves collecting the Scope 1 and Scope 2 emissions (kgCO₂e) from the lessor and allocating emissions to the relevant leased asset. The lessor-specific method involves collecting the Scope 1 and Scope 2 emissions from lessor and allocating emissions to the asset leased by the reporting company. This method is relevant in cases where, for example, office space is leased in a building that is not sub-metered. If the lessor company has data available at the building- or company-level, allocation techniques can be used to apportion emissions to the office space leased by the reporting company.
Average-data method: In this method, the emissions are estimated for each leased buildings, or groups of leased buildings, based on the floor area of the leased space (m²)in the leased building type (e.g., office, hotel healthcare etc.) multiplied by the average emission factor for the corresponding leased building type (e.g., kgCO₂e/office) which is obtained from EEIO database provided by PCAF. The average-data method should be used when purchase records, electricity bills, or meter readings of fuel or energy use are not available or applicable. It is to be noted that the accuracy of the results obtained using this method is compromised (least accurate results compared to the former two methods and may limit the ability of the companies to track their performance of GHG reduction actions). This is the least accurate method, because it uses the industry-average emission factor for the specific building type which leads to obtaining highly simplified output.

Data Required:

Asset-specific method:
- Total Scope 1 and Scope 2 data for specific asset leased by the reporting company (kgCO₂e). This information can be obtained from the lessor’s internal IT systems or relevant reports.
Lessor-specific method:
- Lessor’s total Scope 1 and Scope 2 emission data (kgCO₂e) to be used for the calculation of the allocated emissions from the leased asset by the reporting company. This information can be obtained from the lessor’s internal IT systems or relevant reports.
- Total area (m²) of lessor’s asset and total area (m²) of the portion of the lessor’s asset leased by the reporting company.

The above data can be obtained by measuring the length and breadth of the facility to ultimately find the area of the leased building (given by multiplying length*breadth) (m²) along with the number of buildings that need to be reported based on the type of building (e.g.: 4 – office buildings, 3 – retail stores, 1 – warehouse, etc.). For more details on the data requirements to calculate Scope 1 and Scope 2 emissions of the lessor’s asset, please refer to the tabs on Scope 1 and Sc ope 2.

Average-data method:
- Floor space of each leased building (m²).
- Number of leased buildings, by building type (e.g., office, retail, warehouse, factory, etc.) based on the classification developed by PCAF.

Emission Factors:

Asset-specific method: Site or regionally specific emission factors for energy sources (e.g., electricity and fuels) per unit of consumption (e.g., kg CO₂e/kWh for electricity, kg CO₂e/litres for diesel etc.) which are derived from the UK Government GHG Conversion Factors Sheet and incorporated into the tool.
Lessor-specific method: Site or regionally specific emission factors for energy sources (e.g., electricity and fuels) per unit of consumption (e.g., kg CO₂e/kWh for electricity, kg CO₂e/litres for diesel).
Average-data method: Average emission factors for specific building types are obtained from the European building emission factor database developed by Partnership for Carbon Accounting Financials (PCAF) and are expressed in units of emissions per building type (e.g., kg CO₂e/small office block/year). The average emission factors are already incorporated into the tool.

Scope 3: Category 9 – Downstream Transportation and Distribution

This category includes emissions associated with the transportation and distribution of sold products after the point of sale in vehicles and facilities (e.g., warehouses and distribution centres, retail facilities, air transport, rail transport etc.) not owned or controlled bythe reporting company. This category also includes emissions from retail and storage. Outbound transportation and distribution services that are purchased by the reporting company are excluded from category 9 and included in category 4 (Upstream Transportation and Distribution) because the reporting company purchases the service.

Calculations Methods:

The calculation methods for this category followed shall be the same as used for the Category 4: Upstream Transportation and Distribut ion calculation using either the distance-based or spend-based method for the transportation, and average-data method or site-specific method for the distribution.

Data Required:

The data required for this category shall be the same as for the Category 4: Upstream Transportation and Distribution calculation for either distance-based or spend-based method for the transportation, and average-data method or site-specific method for the distribution.

To address the unavailability or inaccessibility of the transportation data form the downstream customers and transportation companies, reporting company may opt to derive the activity data needed to calculate emissions from the fuel receipts, purchase records (provided by transportation providers), various publications including published port-to-port travel distances, online maps and calculators or internal transport management systems.

Emission Factors:

The emission factors required for this category shall be the same as for the Category 4: Upstream Transportation and Distribution calculation for either distance-based or spend-based method for the transportation, and average-data method or site-specific method for the distribution.

Additional calculation tools:

BringAbout offers users free access to the additional calculation tools, supporting companies to efficiently gather activity data suitable for the input into the tool. The link can be found below:

Distance travelled by downstream transportation and amount spent on the transportation calculation tool enables user to calculate the total distance travelled (miles) by different modes of transport and the total amount spent (£) by the buyer on the transportation services used to transport sold products and services.

Scope 3: Category 10 – Processing of Sold products

Emissions associated with the activities that occur during the processing, transformation, and alteration of sold intermediate products by third parties after sale by the reporting company. Intermediate products are the products that require further processing, transformation, or inclusion in another product before its final use.

Adhesives, chemicals, polymers, or anything else that goes through additional processing before being sold are examples of intermediate goods.

This includes:

Emissions associated with further manufacturing or processing of the intermediate products after its sale by the reporting company/business.
Emissions associated with the refurbishment of products to improve their functionality or condition or both after its sale by the company.
Emissions from activities that transform products into new items or repurpose them for a different use.
Emissions from energy consumption in facilities dedicated to the processing of sold products.

Calculation Methods:

Site-specific method: The amount of fuel (e.g., litres, kg etc.), refrigerant (kg), electricity (kWh) used, and the amount of waste generated (tonnes) from processing of sold intermediate products by the third party must be multiplied by the appropriate emission factor corresponding to the specific type of fuel (e.g., kgCO₂e/kg, kgCO₂e/kWh) obtained from the secondary sources. This approach is more accurate as primary activity data is being used.
Average-data method: It involves estimating emissions for processing of sold intermediate products by multiplying mass of sold intermediate product (kg) by the average emission factor for processing stages of the intermediate product to transform it into a final product (e.g., kgCO₂e/kg of final product). It is a less accurate approach as compared to the site-specific method, but it is widely used when appropriate primary data is not available.

Data required:

Site-specific method:
- The quantities of energy (electricity (kWh), fuels (e.g., kg, litres etc.)) used or consumed in the processing stages of transforming intermediate products into the final products.
- The amount of waste generated (tonnes) in the processing of the intermediate products.
- Activity data related to non-combustion emissions (e.g., fugitive emissions) is desirable for inclusion in the GHG inventory but not mandatory.
Average-data method:
- The mass or quantity of the sold intermediate products (kg).

Emission Factors:

Site-specific method: Emission factors specific to the energy type consumed for the product processing, including fuel and electricity used for the product processing, along with the data on the fugitive emission if applicable, expressed per unit of fuel (e.g., kgCO₂e/kg, kgCO₂e/kWh). The emission factors are obtained from the UK Government GHG Conversion Factors Sheet and are already incorporated into the tool.
Average-data method: Average emission factors for the product processing stage, to transform the intermediate product to the final product can be obtained from the secondary sources such as life cycle databases, the GHG Protocol website, industry associations or companies or manufacturers. The emissions are expressed per weight (kg) of the final product (e.g., kgCO₂e/kg of final product).

Scope 3: Category 11- Use of sold products

This category encompasses emissions associated with the energy consumption and other environmental impacts that occurs from the use of goods and services sold by the reporting company/business in the reporting year.

This includes:

Direct use-phase emissions: The emissions that occur from the direct consumption of energy during the use of the product. These emissions can include products that directly consume electricity, fuels, feedstocks etc. during their use.
Indirect use-phase emissions: The emissions that occur from the indirect consumption of energy during the use of sold products. It is advised to include indirect emissions in the GHG inventory when the emissions associated with this use phase are significant. They can include products that indirectly consume fuels or electricity during their use e.g., food – emissions associated with the electricity or fuel consumed during cooking or refrigerating.
The emissions also include the total expected lifetime emissions from all relevant products sold by the reporting company in the reporting year.

Calculation Methods:

It depends on the type of data available to the reporting company about their sold products and how they are used during their life.

Direct use-phase emissions:
- From products that directly consume energy during product use (fuels or electricity): This method involves using the total lifetime expected uses of the product, number of products sold to consumers and separately multiplied by amount of fuel consumed (e.g., kg, litres etc.), electricity used (kWh), and amount of refrigerant leaked (kg) per use of that product by the relevant emission factors corresponding to the relevant energy source (e.g., for natural gas – kgCO₂e/kWh).
- From fuels/feedstocks as products used: This method multiplies the total quantity of fuel/feedstock sold (e.g., litres, kg etc.) by the emission factor specific to the fuel or feedstock used (e.g., kgCO₂e/litres, kgCO₂e/kg etc.).
- From GHGs and products that contain or form GHGs that are emitted during use: Emissions are calculated using the amount of GHGs (in kg, e.g., CO₂, CH₄, N₂O etc.) that is contained per product, total number of this products sold by the reporting company, percentage (%) of GHGs released during the lifetime use of the specific product ,if this information is available per that specific product (if the percentage released is unknown, it is advised to use 100% as a default number) and multiply the input activity data with the GWP of the GHG (e.g., kgCO₂, kgCH₄ etc.) considered for the purpose of this calculation.
Indirect use-phase emissions:
- From products that indirectly consume energy (fuels or electricity) based on use scenarios: This method involves using the total lifetime expected uses of the product, percentage (%) of total lifetime uses per product, number of that product sold to consumers and separately multiplied by amount of fuel consumed (e.g., kg, litres etc.), electricity used (kWh), and amount of refrigerant leaked (kg) per use of that product by the relevant emission factors corresponding to the relevant energy source (e.g., for natural gas – kgCO₂e/kWh).
- Indirect GHG emissions from the product based on use scenarios: Emissions are calculated using the amount of GHGs (in kg, e.g., CO₂, CH₄, N₂O etc.) emitted indirectly from the product (kg), total number of this product sold by the reporting company, percentage (%) of total lifetime uses of the product in this scenario and multiply the input activity data with the GWP of the GHG (e.g., kgCO₂, kgCH₄ etc.) considered for the purpose of this calculation.
- From use of sold intermediate products: Emissions are calculated by multiplying the total quantity of specific intermediate products sold by the reporting company with the lifetime uses of the final product containing the said intermediate product. This data is further multiplied by the allocated emissions from use of the intermediate product relative to the total emissions generated per final product (kgCO₂e/use). To allocate emissions appropriately, the proportion of emissions linked to the use of the intermediate product must be determined relative to the emissions associated with the use of the final product. This allocation is typically expressed in units of weight. The allocation can be based either on weight (e.g., kg), economic value (e.g., £), energy content (joules) etc.

These calculations require product design specifications such as the assumed or expected total lifetime uses of the product being sold by the company in the reporting year.

Data Required and Emission Factors:

From products that directly consume energy during product use (fuels or electricity):
- Total amount of fuel (e.g., kg, litres etc.) and electricity (kWh) consumed along with the amount of refrigerant leaked (kg) per use of a product.
- Total number of the specific product sold.
- Total lifetime expected uses of the specific product.
- Emission factor specific to the fuel, electricity or refrigerant used (e.g., kgCO₂e/kg etc.).

From fuels/feedstocks as products used:
- Total amount of the specific fuel or feedstock sold (e.g., kg, litres etc.).
- Specific to the fuel/feedstock emission factor (e.g., kgCO₂e/kg etc.).

From GHGs and products that contain or form GHGs that are emitted during use:
- Total amount of GHGs that are contained in the specific product sold (e.g., CO₂, CH₄, N₂O etc.).
- The percentage (%) of the GHGs released during the lifetime use of the specific product.
- Total number of products sold or the total number of each type of products sold is also required.
- GWP (Global Warming Potential) of the GHG emitted (e.g., CO₂– kgCO₂e, CH₄ – kgCH₄etc.).

From products that indirectly consume energy during product use (fuels or electricity):
- Total amount of fuel (e.g., kg, litres etc.) and electricity (kWh) consumed along with the amount of refrigerant leaked (kg) per specific product use scenario.
- Total number of the specific product sold.
- Total lifetime expected uses of the specific product.
- Percentage (%) of total lifetime uses per specific product use scenario.
- Emission factor specific to the fuel, electricity or refrigerant used (e.g., kgCO₂e/kg etc.).

Indirect GHG emissions from the product based on use scenarios:
- Total amount of specific intermediate product sold.
- Total lifetime uses of the final sold products which comprise the intermediate product sold by the reporting company.
- Total emissions per use of the final product containing the intermediate product sold by the reporting company (e.g., kgCO₂e/use)
- Allocated emissions from the use of the intermediate product (kgCO₂e/use) based on the total emissions associated with the use of the final product. This can be derived by deriving the proportional weight (e.g., kg), economic value (e.g., £) or energy content (joules) etc. of the intermediate product to the final product.

Most of the data can be obtained by proper collaboration with the entire value chain to get as much accurate emissions as possible. The data on the energy consumption, amount of GHG contained and released from the product during its lifetime can be derived from the consumers to which the relevant product was sold and can be obtained from the sources such as internal data system, sales records, surveys, or industry associations. The data related to the indirect emissions can be found in the sources that include industry recognised benchmark testing specifications, product category rules, previous emissions studies, or consumer studies.

Scope 3: Category 12 – End of life of sold products

Emissions from the waste disposal and treatment of products, sold by the reporting company, at the end of their life can be included in this category. This category encompasses processes such as landfilling, incineration or recycling of the waste, and other end-of-life processes. The emissions from the transportation of waste from collection points to disposal or recycling facilities may be optionally accounted for in this category.

For sold intermediate products companies should account for the emissions associated with the end-of-life treatments of the intermediate product itself and not the final product.

Calculation Methods:

Waste-type-specific method: This method involves using data specific to the type of waste as used for the calculation purpose in Scope 3, Category 5 (Waste generated during operations). Emissions are calculated by using the total mass (tonnes) of sold products with packaging included from point of sale to the consumer until the end-of-life after consumer use and multiplying it with the percentage (%) of total amount of products disposed being treated by different waste treatment methods based on assumptions made by the reporting company relating to the potential method used by the consumers to treat the reporting company’s product when it reaches its end-of-life point. This data must be further multiplied by the average waste-treatment specific-emission factors based on all waste treatment types used to treat disposed product (kgCO₂e/tonnes).

Data Required:

Total mass of the sold products and the packaging used (tonnes) by the reporting company from the point of sale until the end-of-life point after used by the consumer.
The percentage (%) or proportion of waste being treated by specific treatment/disposal method that consumers are assumed to use for that specific waste type.

Most of the data can be obtained by carrying out a company’s own research, internal data on the treatment of the products at their disposal point, government directives or industry associations or organisations.

Scope 3: Category 13 – Downstream Leased Assets

This category includes emissions from the operation of assets that are owned by the reporting company (acting as lessor) and leased to other entities in the reporting year that are not already included in Scope 1 or Scope 2. This category is applicable to lessors (i.e., companies that receive payments from lessees). Companies that operate leased assets (i.e., lessees) should refer to category 8 (Upstream leased assets).

The availability and access to information depends on the type of the leased asset. For example, a company that leases vehicles may need to request fuel or mileage data from lessees to calculate emissions.

Calculations methods:

The calculation methods for this category followed shall be the same as used for the Category 8: Upstream Leased Assets calculation using either the asset-specific method, lessor-specific method, or average-data method.

Data Required:

The data required for this category shall be the same as for the Category 8: Upstream Leased Assets calculation for calculating either the asset-specific method, lessor-specific method, or average-data method.

Emission Factors:

The emission factors required for this category shall be the same as for the for the Category 8: Upstream Leased Assets calculation for calculating either the asset-specific method, lessor-specific method, or average-data method.

Scope 3: Category 14 – Franchises

Emissions from the operation of franchises that are not covered by Scope 1 or Scope 2 are included in Category 14. A franchise is a company that has been granted permission to market and sell the products or services of another company in a specific area. Franchising companies are those who allow other organisations to sell or distribute their products or services in exchange for payments, such as royalties for the use of their trademarks and other services, fall under this category. The Scope 1 and Scope 2 emissions of franchisees fall under this category, and franchisors are responsible for accounting for these emissions.

Franchisees (i.e., companies that operate franchises and pay fees to a franchisor) should include emissions from operations under their control in this category if they have not already included these emissions in Scope 1 and Scope 2 due to their choice of consolidation approach.

The Scope 1 and Scope 2 emissions from the individual franchises are included under this category of emissions. In case of the individual franchises not being sub metered, an estimate of the energy consumed by the franchise’s share of the building’s total floor space area and the total building energy use can be collected. It can be used to calculate the total emissions from the franchise.

In the case of a company having a very large number of franchises, it may not be practical to collect data from each franchise. Therefore, an appropriate sampling technique could be used, when collecting the data to represent the franchises in an unbiased manner. Common sampling methods available to companies include simple random, systematic, or stratified sampling.

Calculation Methods:

Franchise-specific method: This method involves collecting site-specific activity data or Scope 1 and Scope 2 emissions data (kgCO₂e) from franchisees. If franchisees have conducted corporate Scope 1 and Scope 2 GHG inventory reports, the data can be applied immediately. If such reports are not available, site-specific fuel and energy data from individual franchises should be collected and calculated following the methodology used in Scope 1: Fuel Combustion in Company Owned Facilities. The reporting company should determine whether the franchisee delivers business solely for the reporting company (i.e., franchisor), and if not, the franchisee or the reporting company should allocate the emissions accordingly.
Average-data method: This method is less accurate as compared to the franchise-specific method. It involves estimating emissions for each franchise, or groups of franchises, based on industry-average data obtained from EEIO database provided by PCAF European building emission factor database. Emissions are calculated by multiplying the floor space of the franchised building (m²) by the average emission factor for the corresponding franchised building type (e.g., kgCO₂e/office/m²) obtained from PCAF’s database. This approach should be used when purchase records, electricity bills, or meter readings of fuel or energy use are not available or applicable.

Data Required:

Franchise-specific method:
- Scope 1, Scope 2, and (optionally) Scope 3 emissions data from franchisees.
- Site-specific fuel use (e.g., kg, litres etc.), electricity use (kWh), and process and fugitive emissions activity data, if applicable, to calculate Scope 1 and Scope 2 emissions from franchisee. The data can be collected from the utility bills, meter readings, internal IT systems or purchase records.
Average-data method:
- Floor space of each franchise, by floor space (m²).
- Type of the franchised building according to the PCAF classification.

Emission Factors:

Franchise-specific method: Site or regionally specific emission factors for energy sources (e.g., electricity and fuels) and process emissions and fugitive emissions (e.g., refrigeration and air conditioning) per unit of consumption (e.g., kgCO₂e/kWh for electricity, kg CO₂e/litres for diesel etc.). The data is obtained from the UK Government GHG Conversion Factors Sheet and are built into the tool to calculate the emissions under this category.
Average-data method: Average emission factors for specific building types are obtained from the European building emission factor database developed by Partnership for Carbon Accounting Financials (PCAF) and are expressed in units of emissions per building type of the franchise (e.g., kgCO₂e/small office block/m² etc.). The average emission factors are already incorporated into the tool.

Scope 3: Category 15 – Investments

This category includes emissions not already accounted for in Scope 1 or Scope 2 but are associated with the reporting company’s investments in the specified reporting year. These emissions apply to companies involved in financial services, including commercial banks, profit-driven asset investment firms, and non-profit-driven entities like multilateral development banks.

Category 15 encompasses allocated emissions to the reporting company determined by its proportional share of investment in the investing entity. This category includes:

Equity investments (required): It refers to the equity investment in the asset financed using the company’s own capital and balance sheet. Companies providing financial services are advised to report the emissions associated with equity investment in Scope 1 and Scope 2 when using equity consolidation approach. In Scope 3, Category 15, proportional Scope 1, and Scope 2 emissions of equity investments should be included when using either financial or operational consolidation approach and without reporting company’s control over the investee. The type of assets invested in depends on the consolidation approach taken or contribution by the reporting company over the asset, this includes:
- Financial control (more than 50% ownership): equity investment in subsidiaries (or group companies).
- Significant influence, but not financial control (20-50% ownership): equity investment in associate companies (or affiliated companies).
- Joint financial control: equity investment in joint ventures (non-incorporated joint ventures/partnerships/operations)
- Neither financial control nor significant influence (less than 20% ownership): any emitting entity. Reporting company can establish a threshold for exclusion from their GHG inventory if equity share hold in the entity is very low i.e., equity share of 1%, with provided disclosed justification.

Debt investments (with known use of proceeds) (required): This sub-category encompasses reporting company’s corporate debt holdings such as commercial loans or corporate debt instruments including convertible and non-convertible bonds which have a known use of proceeds for a specific project. The reporting company should account for proportional Scope 1 and Scope 2 emissions of the invested projects in the reporting company’s Scope 3, Category 15. In circumstances where reporting company is an initial sponsor or lender of a project, it should include the total projected lifetime Scope 1 and Scope 2 emissions of the specific project which was financed during a reporting year outside of the Scope 3 inventory.

Project finance (required): It covers the reporting company’s equity investment, whether acting as either an investor (sponsor) or debt investor (financier) for the financing of long-term projects, such as civil engineering projects. The reporting company should account for proportional Scope 1 and Scope 2 emissions of the invested projects in the reporting company’s Scope 3, Category 15. In circumstances where reporting company is an initial sponsor or lender of a project, it should include the total projected lifetime Scope 1 and Scope 2 emissions of the specific project which was financed during a reporting year outside of the Scope 3 inventory.
Managed investments and client services (optional): This sub-category includes client’s investments and capital managed by the reporting company on its behalf or services provided by the reporting client to the client. This involves investment and asset management, with equity or fixed income funds managed for the client using their capital. Additionally, it includes arranging and facilitating corporate underwriting and issuance for client seeking equity or debt capital, as well as providing financial advisory services to clients in need of assistance with merger and acquisitions or seeking other advisory services. The Scope 1 and Scope 2 emissions associated with these types of investment-related services can be included in Scope 3, Category 15.
Other investments or financial services (optional): This sub-category involves all other types of investments, financial contracts, or financial services not referred to in other sub-categories such as pension funds, retirement accounts, securitised products, insurance contracts, credit guarantees etc. The Scope 1 and Scope 2 emissions associated with these types of investment can be included in Scope 3, Category 15.

Calculation Methods:

Equity investments
- Investment-specific method: This method involves obtaining already developed Scope 1 and Scope 2 emissions data from the investee and deriving reporting company’s proportional share (%) in the investee. Scope 3 emissions collected by investee may be also accounted for by the investor (reporting company), if significant. The emission data can be obtained directly from GHG inventory of the investee if available or financial records of the reporting company.
- Average-data method: This method is based on estimation of Scope 1 and Scope 2 emissions from the investee by incorporating into the calculation data on the revenue (£) of the investee company and the investor’s proportional share of equity (%) in the investee available from the companies’ financial records. The allocated revenue (£) is further multiplied by the corresponding secondary EEIO emission factors (kgCO₂e/£ revenue), specific to the sector of the economy assigned to the investee and it should be used in conjunction with applicable inflation and exchange rates.

Project finance and from debt investments with known use of proceeds
- Project-specific method: This method involves obtaining already developed Scope 1 and Scope 2 emissions data associated with the invested project and reporting company’s proportional share (%) of the total cost of the invested project as the main activity. The emission data can be obtained directly from GHG inventory of the investee, if available, financial records of the reporting company or from publicly available GHG inventories for assets which are over the certain size threshold based on the requirements set in some countries or regions.
- Average-specific method: This method is based on estimation of Scope 1 and Scope 2 emissions from the invested projects by incorporating into the calculation data on the invested project costs (£) of the investee company and the investor’s proportional share of equity (%) in the invested project available from the companies’ financial records. The allocated revenue (£) from the project is further multiplied by the corresponding secondary EEIO emission factors (kgCO₂e/£ revenue), specific to either construction sector or operational sector in accordance with the phase of the project. It should be used in conjunction with applicable inflation and exchange rates. The EEIO data for operational phase of the project can also be used when revenue is generated during that phase, otherwise, alternative data or assumptions using industry or government studies of similar projects can be used for estimation. The EEIO data can be obtained from EEIO databases and cover all upstream emissions which can be either disaggregated into Scope 1 and Scope 2 emissions as a minimum boundary for reporting, or full EEIO emission factor encompassing Scope 1, 2 and 3 should be used when disaggregation is not feasible, or Scope 3 emissions are significant. The type of the reporting boundary must be clearly disclosed by the reporting company.

Data Required:

Total Scope 1, 2 and 3 (if significant) emissions (kgCO₂e) generated by the investee company, financed project, or debt investments during a reporting year, along with the reporting company’s corresponding percentage of equity share (%) in the specific investment.
Total revenue (£) generated by the investee or project, or costs (£) of construction of the invested project by the reporting company.

Emission Factors:

The average emission factors corresponding to the revenue/costs (£) from either investee company or financed project can be obtained from EEIO databases including incorporated into the tool spend-based emission factors (kgCO₂e/£ revenues) provided by DEFRA (2020). It covers all upstream emissions which can be either disaggregated into Scope 1 and Scope 2 emissions as a minimum boundary for reporting, or full EEIO emission factor encompassing Scope 1, 2 and 3 should be used when disaggregation is not feasible, or Scope 3 emissions are significant. The type of the reporting boundary must be clearly disclosed by the reporting company.