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Franchise emissions, listed under Category 14 of Scope 3 emissions in the Greenhouse Gas Protocol, refer to greenhouse gas emissions that arise from franchise operations not owned or controlled by the reporting company but that operate under the reporting company's brand name.
This category is significant for companies with a franchise business model, as it covers emissions from activities over which they do not have direct control but have a branding or operational influence.
The emissions from franchises include those from all franchise operations, which could involve various activities depending on the nature of the franchise. This can consist of emissions from energy used in franchise locations, waste generated, transportation of goods, employee commuting, and more, depending on the specifics of the franchise operations and the types of goods or services they provide. Companies with extensive franchise operations need to account for these emissions to understand their overall carbon footprint comprehensively.
This category helps recognise and manage the indirect emissions related to a company's brand, which are often significant and can impact the company's overall sustainability goals. It also assists companies in engaging with their franchisees to implement more sustainable practices and technologies to reduce the overall emissions associated with their brand.
To take action, discover how software can support your carbon accounting and decarbonisation strategy.
