Processing of sold product emissions, defined as Scope 3 Category 10 in the GHG Protocol, refers to indirect greenhouse gas (GHG) emissions that occur when a sold product undergoes further processing or transformation by a third party before it reaches the end consumer.
This category captures emissions that arise during the processing of intermediate products sold by the reporting company to another company that further processes them. These emissions are often associated with industries where intermediate products are an essential input into another product's manufacturing process.
The critical points for this category include:
- Transformation of intermediate products: Emissions generated when the products sold by the company are transformed or modified by another entity. For example, a steel manufacturer sells steel coils to a car manufacturer, which are then used and processed into car parts.
- Emissions from third-party processors: Includes all GHG emissions from the energy used during the transformation processes at the third-party facilities, whether direct emissions from fuel combustion or indirect emissions from purchased electricity.
- Value chain extensions: The emissions in this category often continue the reporting company's value chain, linking upstream producers to downstream processors and manufacturers.
This category does not include emissions associated with the products' manufacturing by the reporting company, as those are typically accounted for in Scope 1 and Scope 2 emissions. It only focuses on the additional processing conducted by other entities outside the direct control of the reporting company.
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