Glossary

Downstream leased assets emissions (Scope 3 Category 13)

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Summary
In simple terms, when a company leases out assets like vehicles or buildings and doesn't control how they are used, the emissions generated from these assets fall under what's known as "Downstream leased assets emissions."

Downstream leased assets in Scope 3, Category 13 refer to emissions from using assets leased out by the reporting company, where the company is the lessor. These emissions encompass the entire life cycle of the leased asset, including manufacture, transport, storage, use, and end-of-life treatment. 

This category is crucial because it accounts for emissions linked to assets the reporting company owns but does not directly control in terms of operational use. Such assets might include vehicles, buildings, or machinery the company leases to other entities.

Downstream leased assets in Scope 3, Category 13 of the GHG Protocol refer to emissions resulting from using assets leased out by the reporting company, where the company is the lessor. These emissions encompass the entire life cycle of the leased asset, including manufacture, transport, storage, use, and end-of-life treatment. 

This category is crucial because it accounts for emissions linked to assets the reporting company owns but does not directly control in terms of operational use. Such assets might include vehicles, buildings, or machinery the company leases to other entities.

The guidance for categorising emissions from leased assets, whether categorised under Scope 1, 2, or 3, depends on the type of lease (operating or finance/capital lease) and the organisational boundary approach adopted (equity share, financial control, or operational control). 

Under Scope 3, Category 13, emissions from assets leased to others typically fall into the category when a lessor maintains ownership and financial control over the assets but has no operational control over how the lessees use these assets. 

In this case, all associated emissions are considered indirect and categorised under Scope 3. This ensures that emissions are reported accurately without double counting across Scopes 1, 2, and 3.

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