The Cozero Assets leased from others category covers emissions from the operation of assets (vehicles and facilities) that are leased by the company, and not already included in the reporting company’s scope 1 or scope 2 inventories.
Whether the emissions are categorized as scope 1 (direct), scope 2 (indirect), or scope 3 (indirect), such as leased assets, depends on the selected organizational boundary approach taken by the company. For further information on how to allocate leased assets.
How this Category aligns to carbon accounting standards
The GHG Protocol Corporate Standard is an internationally-recognized go-to standard for estimating and reporting corporate GHG emissions. GHG emissions are categorized into three 'Scopes'.
Scope 3 emissions are all indirect emissions – not included in scope 2 – that occur in the value chain of the reporting company. In other words, the emissions that are linked to the company’s operations. Activities covered by scope 3 emissions are diverse, but sit in two high level categories:
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Upstream emissions are indirect emissions related to purchased or acquired goods and services (all the emissions occurring to the point of receipt by the company: material sourcing and pre-processing)
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Downstream emissions are indirect emissions related to sold goods and services (all the emissions occurring after being sold by the reporting company: distribution, storage, use, end-of-life)
The Cozero category, Assets leased from others, is an upstream source of scope 3 emissions, as defined by the GHG Protocol. All emission calculation methodologies follow the requirements for this scope of emission accounting.
Calculation methods
Here are the different calculation methods available on the Log to calculate scope 3 emissions from Assets leased from others. This covers the following types of leased assets: delivery vehicles, motorbikes and passenger cars.
These methods are listed in order of how accurate the methodology is, according to accounting methods. Users should choose the method that is the most appropriate to the data available to them, to their business goals and the significance of the emissions of the category.
Fuel Consumption and Electricity Methods
Emissions are estimated by collecting data on the quantity of fuel or electricity used for operation of the leased vehicles during the reporting period and multiplying by the relevant emission factor.
• Activity data: volume of fuel or electricity (in case of electric means of transport) used by employees in kWh.
• Emission factor: the Log provides default fuel and electricity emission factors (kgCO2e/kWh) but users can also enter supplier-specific emission factors.
• Step 1: Select the category “Assets leased from others”
• Step 2: Select the subcategory - means of transport - you want to report on (e.g. passenger car, motorbike, etc)
• Step 3: Select the type of data you are accounting and additional activity details
• Step 4: Enter the quantity of fuel or electricity for the means of transport
• Step 5: (If available, amend the emission factor with your own supplier-specific emission factor)
Cozero will automatically calculate the emissions for the quantity of fuel or electricity entered. For more information on Market-based vs Location-based electricity accounting, please see here.
Distance Method
Emissions are estimated by collecting data on the total distance traveled by the operation of the leased vehicles during the reporting period and multiplying by the relevant emission factor.
• Activity data: distance traveled in km
• Emission factor: the Log is providing a default distance emission factor (kgCO2e/km) but users can also enter supplier-specific emission factors.
• Step 1: Select the category “Assets leased from others”
• Step 2: Select the subcategory - means of transport - you want to report on (e.g. passenger car, motorbike, etc)
• Step 3: Select the type of data you are accounting and additional activity details
• Step 4: Enter the distance traveled for the means of transport
• Step 5: (If available, amend the emission factor with your own supplier-specific emission factor)
Cozero will automatically calculate the emissions for the distance entered.
Direct Emissions Input
Users can enter the amount of emissions in CO2e directly in the log. They need to make sure of the accuracy of data used in this estimation.
Where can I find the data?
- Activity Data:
-> Asset-specific fuel use and electricity, steam, heating and cooling use
-> If applicable, activity data related tonon-combustion emissions (i.e., industrial process or fugitive emissions).
Data sources for activity data may include:
• Purchase records from the lessor company
• Utility bills
• Meter readings
• Internal IT systems.
Note that data quality is an iterative process and should be built over time. Therefore there is no need to have the perfect data right away. For more information on data collection see the article on data sourcing.
FAQ
For additional information on the calculation of scope 3 emissions, users can refer to the GHG Protocol Guidance. Please get in touch with our team if there is a frequent need to make use of this Log emission category and you require additional support in the calculation of emissions.