Scope 3 Category 10 Overview: Processing of Sold Products
SCOPE 3 CATEGORY 10
Scope 3 emissions, also known as value chain emissions, refer to indirect emissions that occur both upstream and downstream in a company's value chain. Category 10 of these pollutants explicitly addresses emissions caused by the usage of sold products. This category is critical for enterprises that produce GHG emissions throughout their use phase, such as autos, appliances, or fuels.
The Greenhouse Gas Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard defines Scope 3 Category 10 emissions as those originating from the usage of goods and services sold by the reporting company in a given year. This category typically applies to makers and distributors of products that consume energy or emit GHGs during their use, such as automobiles, machines, fuels, or appliances.
Category 10: Processing of Sold Products
Calculation
Emissions are accounted for during the product's usage phase, expanding the company's obligation beyond the production phase to include how products are utilized by customers. This technique assists businesses in identifying major potential to reduce GHG emissions, which can be accomplished by product design changes, enhanced efficiency, or substitute materials that have a lower GHG impact during usage.
Example
- Consider a company that manufactures refrigerators. The GHG emissions associated with the use of these refrigerators by customers—specifically due to their energy consumption over their operational lifetime—would be classified under Scope 3 Category 10 emissions.
Understanding and managing Scope 3 Category 10 emissions is vital for companies aiming to reduce their carbon footprint comprehensively. It not only helps in understanding the broader impact of their products but also in driving innovations that could lead to more sustainable products.
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