Scope 3 Category 11 Overview: Use of Sold Products
SCOPE 3 CATEGORY 11
As part of the GHG Protocol's corporate value chain (scope 3) accounting, encompass "use of sold products." This category is intended to help organizations account for indirect emissions that arise during the use of their offered items. It is one of the most major sources of emissions for businesses that manufacture things that use energy or resources during usage, such as autos or appliances.
Category 11 focuses on emissions generated during the operation or consumption phases of products sold by a reporting entity in a given year. These emissions are often generated outside of the reporting organization's direct control, but they are significantly influenced by product design and attributes such as energy efficiency. This category is crucial for companies whose products have a long-term environmental impact.
Category 11: Use of Sold Products
In this category, businesses must include direct use-phase emissions of marketed products. Companies can also account for indirect use-phase emissions from marketed items, and they should do so if they are projected to be considerable.
The Scope 3 Standard divides emissions from the use of sold products into two types:
Calculation Method
To calculate these emissions, the GHG Protocol recommends using lifecycle assessment data where possible, or deriving estimates based on energy consumption data and applying relevant emission factors. The reporting company should consider all significant life cycle stages that contribute to GHG emissions during the use of the sold products.
Example
- A simple example is an automotive manufacturer that calculates the emissions from the fuel used by the vehicles it sold during the reporting year. This calculation would involve estimating the average fuel consumption per vehicle, the total number of vehicles sold, and the emissions factors for the fuel used.
Thus, identifying and reporting Category 11 emissions is critical for businesses looking to reduce their environmental impact and increase product sustainability. By concentrating on the usage phase of sold items, businesses can uncover considerable potential to reduce indirect emissions through product design innovations and greater efficiency.
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