Category 13: Downstream leased assets
This category applies to reporting companies that own and lease assets to other entities. It includes emissions from the operation of these assets, that are not already included in scope 1 and scope 2.
Leased assets may be included in a company’s scope 1 and scope 2 inventory depending on the type of lease and the consolidation approach used by the company to define organizational boundaries1.
If the reporting company leases an asset for only part of the reporting year, the company should account for emissions from the portion of the year that the asset was leased.
Companies may account for products leased to consumers the same way the company accounts for products sold, i.e., by accounting for the total expected lifetime emissions from all relevant products leased to other entities in the reporting year. In this case, companies should report emissions from leased products in category 11 (Use of sold products), rather than in this category, to avoid double counting between categories.
A reporting company’s scope 3 emissions from downstream leased assets include the scope 1 and scope 2 emissions of the lessees2, depending on the lessee’s consolidation approach.
The methods for calculating emissions from both downstream and upstream leased assets are similar.
If the company (acting as the lessor) uses the asset-specific method to calculate emissions, and the lessee has leased multiple assets with scope 1 and scope 2 emissions aggregated across them, the lessee should provide the reporting company with additional information to enable the company to allocate emissions. An example of this scenario is shown below.
Footnotes
Companies that operate leased assets↩︎