Managing Scope 3 Categories – Part 2

Please note: This article is for educational purposes only. It does not replace official GHG Protocol guidance or professional carbon reporting advice.

This article covers scope 3 categories 11 to 15, providing practical reduction techniques for the use of sold products, end-of-life treatment, downstream leased assets, franchises, and investments. Together with categories 5-10, these form the complete downstream picture of a company’s value chain emissions.

Contents

1. Category 11: Use of Sold Products
2. Category 12: End-of-Life Treatment of Sold Products
3. Categories 13 & 14: Downstream Leased Assets and Franchises
4. Category 15: Investments

Category 11: Use of Sold Products

Emissions associated with the energy consumption and other environmental impacts that occur from the use of goods and services sold by the reporting company in the reporting year. This includes both direct use-phase emissions (such as cars, power plants, electronics, and lighting) and indirect emissions where significant, such as the electricity or fuel consumed when cooking or refrigerating food products.

Reduction Techniques

Product design and efficiency:

• Aim for the highest energy efficiency rating on the Energy Performance Certificate (EPC) and apply eco-design principles throughout the product’s lifetime.
• Improve product durability to enhance overall performance and minimise upstream and downstream emissions.
• Use lightweight materials where possible to improve efficiency, particularly in vehicles, reducing fuel consumption during the use phase.

Product analytics:

• Use smart monitoring systems to gather accurate data on usage status of sold electronic devices.
• Account for the most up-to-date energy efficiency measures during product testing to inform decision-making.
• Gather data on consumer usage behaviour to drive improvements in power-saving features.
• Develop benchmarks and standards to ensure energy efficiency measures are embedded in new software updates.
• Implement regular software updates with default settings optimised for energy efficiency.

Consumer engagement:

• Promote initiatives such as the Carbon Literacy Project to equip consumers with knowledge and skills to reduce their carbon footprint.
• Encourage consumers to install smart meters or use free online energy efficiency calculators to track real-time consumption.
• Use transparent marketing strategies to help consumers understand how to use products more efficiently.
• Offer repair or upgrading services to extend product lifespan and improve energy efficiency. Platforms such as Recycle Your Electricals can help consumers find nearby repair services.
• Embed Life Cycle Assessment monitoring to identify emission hotspots and incentivise the generation of Environmental Product Declarations (EPDs).
• Market energy-efficient products by emphasising overall lifecycle cost rather than upfront cost alone.

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Category 12: End-of-Life Treatment of Sold Products

Emissions associated with the end-of-life waste disposal and treatment of products sold by the reporting company in the current reporting year. Treatment processes include landfilling, incineration, composting, anaerobic digestion, and recycling. Optionally, emissions from the transportation of waste to disposal or recycling facilities may also be accounted for.

Reduction Techniques

Extending product use:

• Implement repair services, subscription models, redistribution initiatives, and take-back schemes.
• Recycle Your Electricals — finds nearby locations to recycle, donate, or repair electric devices.
• Dunelm — offers take-back schemes for textiles, home appliances, furniture, and electricals.
• FareShare — redistributes surplus food from businesses to over 8,500 charities and community groups across the UK.
• Too Good To Go — redistributes surplus food to customers via Surprise Bags sold at reduced prices.

Product design:

• Invest in high-quality materials, engineering, and manufacturing processes to enhance durability and ease of disassembly for recycling.
• Substitute or avoid materials that are challenging to dispose of sustainably, such as hazardous materials.

Industry initiatives:

• Textiles Action Network — integrating circularity into the textile industry’s business model.
• The UK Plastics Pact — reducing plastic packaging across the value chain.
• The Food Waste Reduction Roadmap — a ‘Target, Measure, Act’ commitment to halving food waste per capita by 2030 in line with UN SDG 12.3.

Consumer engagement:

• Promote platforms such as Love Food Hate Waste to equip consumers with skills to reduce food waste.
• Use transparent marketing to help consumers understand how to use and dispose of products more sustainably.
• Embed Life Cycle Assessment monitoring and EPD generation to inform product line improvements and consumer decision-making.

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Categories 13 & 14: Downstream Leased Assets and Franchises

Emissions from the operation of assets leased to other entities (Category 13) and the operation of franchises (Category 14), owned by the reporting company acting as a lessor or franchisor, and not already included in Scope 1 or Scope 2 inventories.

Reduction Techniques

• Aim for the highest EPC energy efficiency rating for leased or franchised buildings, including replacing traditional lighting with LEDs, insulating premises, and implementing renewable energy systems.
• Incorporate legally binding green lease clauses to define the environmental responsibilities of both tenants and owners.
• Arrange regular catch-up meetings with lessees and franchisees to explore energy performance improvement opportunities.
• Enhance or replace the car fleet for leasing with EVs, PHEVs, or hybrid vehicles, and promote available grants such as the Workplace Charging Scheme.

Lessee and franchisee engagement:

• Promote the Carbon Literacy Project to equip lessees and franchisees with knowledge to make more environmentally conscious choices.
• Encourage installation of smart meters or electricity usage monitors in leased and franchised buildings.
• Advise on repair and upgrading services to improve energy efficiency of electric devices within leased assets.
• Encourage device settings to be optimised for energy efficiency, such as reducing screen brightness or setting shorter sleep mode intervals.

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Category 15: Investments

Emissions associated with the reporting company’s investments in the specified reporting year, not already accounted for in Scope 1 or Scope 2. This category applies primarily to entities within the financial services sector, including commercial banks, asset investment firms, and non-profit organisations such as multilateral development banks.

Reduction Techniques

• Aim for the highest EPC energy efficiency rating for invested buildings and apply eco-design principles, including LED lighting, insulation, and renewable energy systems.
• Conduct Life Cycle Assessment to identify the most significant emission sources within the cradle-to-grave lifecycle of investments and inform environmentally conscious decision-making.
• Identify and engage with relevant stakeholders involved in financed investments with significant Scope 1 and Scope 2 emissions, including setting up community groups or assigning carbon reduction tasks by stakeholder role.
• Join the Green Finance Platform to share knowledge with investors and access the latest research, guidance, and case studies on green financing.
• Encourage staff to work toward the Certificate in Green and Sustainable Finance from the Chartered Banker Institute.

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