Category 11: Use of Sold Products

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1 11 Catgory 11: Us of Sold Products Catgory dscription T his catgory includs missions from th us of goods and srvics sold by th rporting company in th rporting yar. A rporting company s scop 3 missions from us of sold products includ th scop 1 and scop 2 missions of nd usrs. End usrs includ both consumrs and businss customrs that us final products. Th Scop 3 Standard divids missions from th us of sold products into two typs (s also tabl 11.1): Dirct us-phas missions Indirct us-phas missions. In catgory 11, companis ar rquird to includ dirct us-phas missions of sold products. Companis may also account for indirct us-phas missions of sold products, and should do so whn indirct us-phas missions ar xpctd to b significant. S tabl 11.1 for dscriptions and xampls of dirct and indirct us-phas missions. Catgory 11 includs th total xpctd liftim missions from all rlvant products sold in th rporting yar across th company s product portfolio. (Rfr to chaptr 5.4 of th Scop 3 Standard for mor information on th tim boundary of scop 3 catgoris.) S box 11.1 in this chaptr for an xampl of rporting product liftim missions and box 11.2 for guidanc rlatd to product liftim and durability. Th GHG Protocol Product Standard provids information on accounting for lif cycl GHG missions from individual products. Companis may optionally includ missions associatd with maintnanc of sold products during us. S sction 5.6 of th Scop 3 Standard for guidanc on th applicability of catgory 11 to final products and intrmdiat products sold by th rporting company. Tchnical Guidanc for Calculating Scop 3 Emissions [113]

2 Tabl [11.1] Emissions from us of sold products Typ of Emissions Product Typ Exampls Dirct us-phas missions (rquird) Products that dirctly consum nrgy (fuls or lctricity) during us Automobils, aircraft, ngins, motors, powr plants, buildings, appliancs, lctronics, lighting, data cntrs, wb-basd softwar Fuls and fdstocks Ptrolum products, natural gas, coal, biofuls, and crud oil Grnhous gass and products that contain or form grnhous gass that ar mittd during us CO 2, CH 4, N 2 O, HFCs, PFCs, SF 6, rfrigration and air-conditioning quipmnt, industrial gass, fir xtinguishrs, frtilizrs Indirct us-phas missions (optional) Products that indirctly consum nrgy (fuls or lctricity) during us Apparl (rquirs washing and drying), food (rquirs cooking and rfrigration), pots and pans (rquir hating), and soaps and dtrgnts (rquir hatd watr) Sourc: Tabl 5.8 from th Scop 3 Standard. Calculating missions from catgory 11 typically rquirs product dsign spcifications and assumptions about how consumrs us products (.g., us profils, assumd product liftims). Companis ar rquird to rport a dscription of th mthodologis and assumptions usd to calculat missions (s chaptr 11 of th Scop 3 Standard). Whr rlvant, companis should rport additional information on product prformanc whn rporting scop 3 missions to provid additional transparncy on stps companis ar taking to rduc GHG missions from sold products. Such information may includ GHG intnsity mtrics, nrgy intnsity mtrics, and annual missions from th us of sold products (s sction 11.3 of th Scop 3 Standard). S sction 9.3 of th Scop 3 Standard for guidanc on rcalculating bas yar missions whn mthodologis or assumptions rlatd to catgory 11 chang ovr tim. Any claims of avoidd missions rlatd to a company s sold products must b rportd sparatly from th company s scop 1, scop 2, and scop 3 invntoris. (For mor information, s sction 9.5 of th Scop 3 Standard) Box [11.1] Exampl of rporting product liftim missions An automakr slls 1 million cars in Each car has an xpctd liftim of 10 yars. Th company rports th anticipatd us-phas missions of th 1 million cars it sold in 2010 ovr thir 10-yar xpctd liftim. Th company also rports corporat avrag ful conomy (km pr litr) and corporat avrag missions (kg CO 2 /km) as rlvant missions-intnsity mtrics. Sourc: Box 5.7 from th Scop 3 Standard. Tchnical Guidanc for Calculating Scop 3 Emissions [114]

3 Box [11.2] Product liftim and durability Bcaus th scop 3 invntory accounts for total liftim missions of sold products, companis that produc mor durabl products with longr liftims could appar to b pnalizd bcaus, as product liftims incras, scop 3 missions incras, assuming all ls is constant. To rduc th potntial for missions data to b misintrprtd, companis should also rport rlvant information such as product liftims and missions intnsity mtrics to dmonstrat product prformanc ovr tim. Rlvant missions intnsity mtrics may includ annual missions pr product, nrgy fficincy pr product, missions pr hour of us, missions pr kilomtr drivn, missions pr functional unit, tc. Sourc: Box 5.8 from th Scop 3 Standard. This sction provids guidanc of th following: What should b includd in th missions from us of sold products Guidanc on what to includ in a us profil Rporting guidanc Guidanc on how to assss uncrtainty on th product s us profil. Calculating missions from us of sold products This guidanc provids calculation mthods to calculat a company s: Dirct us-phas missions Indirct us-phas missions. Calculation mthods for dirct us-phas missions Companis should first dtrmin in which catgoris thir products blong. Th following products hav dirct-us phas missions: Products that dirctly consum nrgy (fuls or lctricity) during us: involvs braking down th us phas, masuring missions pr product, and aggrgating missions Fuls and fdstocks: involvs collcting ful us data and multiplying thm by rprsntativ ful mission factors Grnhous gass and products that contain or form grnhous gass that ar mittd during us: involvs collcting data on th GHG containd in th product and multiplying thm by th prcnt of GHGs rlasd and GHG mission factors. If a company slls a larg slction of products, or if th us phas of multipl products is similar, it may choos to group similar products and us avrag statistics for a typical product in th product group. For xampl, a fast-moving consumr goods company slling carbonatd drinks may dcid to group products by packaging typs and trat all products within that group with th sam us profil. Tchnical Guidanc for Calculating Scop 3 Emissions [115]

4 Calculation mthod for dirct us-phas missions from products that dirctly consum nrgy (fuls or lctricity) during us In this mthod, th company multiplis th liftim numbr of uss of ach product by th amount sold and an mission factor pr us. Companis should thn aggrgat us-phas missions of all products. Activity data ndd Total liftim xpctd uss of product(s) Quantitis of products sold Ful usd pr us of product Elctricity consumption pr us of product Rfrigrant lakag pr us of product. Emission factors ndd Lif cycl mission factors for fuls Lif cycl mission factors for lctricity Global warming potntial of rfrigrants. Data collction guidanc Data sourcs for activity data includ: Intrnal data systms Sals rcords Survys Industry associations. Data sourcs for mission factors includ: Th GHG Protocol wbsit (www.ghgprotocol.org) Lif cycl databass Company or supplir dvlopd mission factors Industry associations. It is important to considr th rgion whr products ar usd, spcially if th product consums lctricity bcaus lctricity grid mission factors can vary significantly. If its product is usd globally, a company may considr using a global avrag lctricity mission factor but stimating product us at a mor granular lvl (ithr rgional or national) and applying rgional or national lctricity grid mission factors would rsult in mor accurat missions stimats for this catgory. Scnario uncrtainty can also b hlpful hr. Tchnical Guidanc for Calculating Scop 3 Emissions [116]

5 Calculation formula [11.1] Dirct us-phas missions from products that dirctly consum nrgy (fuls or lctricity) during us CO 2 missions from us of sold products = sum across fuls consumd from us of products: (total liftim xpctd uss of product numbr sold in rporting priod ful consumd pr us (kwh) mission factor for ful (kg CO 2 /kwh)) + sum across lctricity consumd from us of products: (total liftim xpctd uss of product numbr sold in rporting priod lctricity consumd pr us (kwh) mission factor for lctricity (kg CO 2 /kwh)) + sum across rfrigrant lakag from us of products: (total liftim xpctd uss of product numbr sold in rporting priod rfrigrant lakag pr us (kg) global warming potntial (kg CO 2 /kg)) Exampl [11.1] Calculating dirct us-phas missions from products that dirctly consum nrgy (fuls or lctricity) during us Company A is a manufacturr of lctrical appliancs such as washing machins and irons. It collcts sals rcords of quantitis sold as wll as avrag liftim uss for ach of its products. It sourcs data on lctricity consumd pr us from industry rports and lctricity mission factors from govrnmnt data. Th rsults ar summarizd in th tabl blow: Product Total uss ovr liftim Numbr sold Elctricity consumd pr us (kwh) Elctricity mission factor (kg CO 2 /kwh) Washing machin X100 1,000 11, Washing machin X200 1,100 1, Iron Y123 2,000 20, Not: Th activity data and missions factors ar illustrativ only, and do not rfr to actual data. Tchnical Guidanc for Calculating Scop 3 Emissions [117]

6 Exampl [11.1] Calculating dirct us-phas missions from products that dirctly consum nrgy (fuls or lctricity) during us (continud) Emissions for ach product ar calculatd using th following formula: (total liftim xpctd uss of product numbr sold in rporting priod lctricity consumd pr us (kwh) mission factor for lctricity (kg CO 2 /kwh)) Washing machin X100: = 1,000 11, = 7,475,000 kg CO 2 Washing machin X200: = 1,100 1, = 1,567,500 kg CO 2 Iron Y123: = 2,000 20, = 4,000,000 kg CO 2 total missions from us of sold products = missions from X100 + missions from X200 + missions from Y123 = 7,475, ,567, ,000,000 = 13,042,500 kg CO 2 Calculation mthod for dirct us-phas missions from fuls and fdstocks Fdstock rfrs to starting matrials that ar usd to mak fuls, powr and/or products. Ths may includ biomass for producing powr, crops for producing biofuls, or crud oil for producing plastic products. If th rporting company is a producr of fuls and/or fdstocks, th us-phas missions ar calculatd by multiplying th quantitis of fuls/ fdstocks by th combustion mission factors for th fuls/fdstocks. If th fdstock is not combustd during th us phas, no missions should b calculatd. Not that only th combustion missions should b rportd in this catgory, not th upstram missions associatd with th fdstock/ful. This mthod avoids doubl counting as th upstram missions associatd with th production of th fdstock/ful wr alrady includd in th rporting company s scop 1 and scop 2, as wll as othr scop 3 catgoris. Activity data ndd Total quantitis of fuls/fdstocks sold. Emission factors ndd Combustion mission factors of ful/fdstock. Tchnical Guidanc for Calculating Scop 3 Emissions [118]

7 Data collction guidanc Combustion mission factors for ful/fdstock ar wll documntd by many intrnationally rcognizd sourcs such as th IPCC Fourth Assssmnt Rport and thos factors includd in th GHG Protocol calculation tools. In practic, th missions vary btwn applications and countris basd on th following: Tchnology: th compltnss of combustion may vary from application to application Exact ful mix: th prcis ful mix may vary from rgion to rgion and company to company; for xampl, th typs of aromatic hydrocarbon mixd with gasolin may altr th combustion missions. Bcaus of this variation companis should us th most rprsntativ mission factors for thir ful. Calculation formula 11.2: Dirct us-phas missions from combustd fuls and fdstocks CO 2 missions from ful = sum across fuls/fdstocks: (total quantity of ful/fdstock sold (.g., kwh) combustion mission factor for ful/fdstock (.g., kg CO 2 /kwh)) Calculation mthod for dirct us-phas missions from grnhous gass and products that contain or form grnhous gass that ar mittd during us Som products may contain GHGs which ar mittd during us or at th nd of th product s usful lif (.g. products that contain rfrigrnts). If th rporting company is a producr of products containing GHGs, us-phas missions ar calculatd by multiplying th quantitis of products sold by th prcntag of GHGs rlasd pr unit of GHG containd in th product and by th global warming potntial (GWP) of th grnhous gass rlasd. Activity data ndd Total quantitis of products sold Quantitis of GHGs containd pr product Prcntag of GHGs rlasd throughout th liftim of th product. Emission factors ndd GWP of th GHGs containd in th product, xprssd in units of carbon dioxid pr unit kilogram of th GHG (.g., 25 kg CO 2 /kg) Not: If diffrnt GHGs ar rlasd by th product, th total carbon dioxid quivalnt should b rportd and th brakdown of GHGs (.g., CO 2, CH 4, N 2 O) may b rportd sparatly (s chaptr 8 of th Scop 3 Standard). Th company should first account for all th diffrnt typs of GHGs containd in a product, thn aggrgat for all products. If th us phas of a product is likly to b similar for multipl products, companis may group similar products. Tchnical Guidanc for Calculating Scop 3 Emissions [119]

8 Calculation formula [11.3] Dirct us-phas missions from grnhous gass and products that contain or form grnhous gass that ar mittd during us CO 2 missions from grnhous gass and products that contain or form grnhous gass that ar mittd during us = sum across GHGs rlasd in a product or product group: (GHG containd pr product Total Numbr of products sold % of GHG rlasd during liftim us of product GWP of th GHG) thn: sum across products or product groups: (us phas missions from product or product group 1,2,3 ) Not: if th % rlasd is unknown 100% should b assumd. Calculation mthods for indirct us-phas missions Calculation mthod for indirct us-phas missions from products that indirctly consum nrgy (fuls or lctricity) during us For products that indirctly consum nrgy or mit GHGs (s tabl 11.1), th rporting company should calculat missions by crating or obtaining a typical us-phas profil ovr th liftim of th product and multiplying by rlvant mission factors. Activity data ndd Avrag numbr of uss ovr liftim of product Avrag us scnarios (.g., wightd avrag of scnarios) Ful consumd in us scnarios Elctricity consumd in us scnarios Rfrigrant lakag in us scnarios GHGs mittd indirctly in us scnarios. Emission factors ndd Combustion mission factors of fuls and lctricity. Idally agrmnt should b rachd by a sctor (.g., industry associations and trad bodis) on common ruls for usphas assumptions. Ths assumptions can thn b vrifid by an indpndnt third party to improv consistncy and comparability. Th mission factors applid should b rprsntativ of th gography of whr th product is sold as wll as th rporting yar. Tchnical Guidanc for Calculating Scop 3 Emissions [120]

9 Data collction guidanc Th gnration of a typical us phas may b difficult bcaus th sam product may consum mor or lss nrgy dpnding on th conditions in which it is usd. For xampl, a potato may b roastd, boild, or microwavd, ach cooking mthod using a diffrnt amount of nrgy and thus producing diffrnt lvls of missions. Thrfor, it is important to gnrat a us profil that is rprsntativ of us scnarios ovr th liftim of th product by th intndd consumr population. Ths may com from sourcs such as: Industry rcognizd bnchmark tsting spcifications Product catgory ruls Prvious missions studis Consumr studis. Companis may choos to idntify svral diffrnt us-phas scnarios for a product and crat a wightd avrag basd upon actual activity. Calculation formula [11.4] Indirct us-phas missions from products that indirctly consum nrgy (fuls or lctricity) during us Indirct us-phas CO 2 missions of products = sum across fuls consumd from us scnarios: (total liftim xpctd uss of product % of total liftim uss using this scnario numbr sold in rporting priod ful consumd pr us in this scnario (.g., kwh) mission factor for ful (.g., kg CO 2 /kwh)) + sum across lctricity consumd from us scnarios: (total liftim xpctd uss of product % of total liftim uss using this scnario numbr sold in rporting priod lctricity consumd pr us in this scnario (kwh) mission factor for lctricity (kg CO 2 /kwh)) + sum across rfrigrant lakag from us scnarios: (total liftim xpctd uss of product % of total liftim uss using this scnario numbr sold in rporting priod rfrigrant lakag pr us in this scnario (kg) mission factor for rfrigrant (kg CO 2 /kg)) + sum across GHG mittd indirctly from us scnarios: (total liftim xpctd uss of product % of total liftim uss using this scnario numbr sold in rporting priod GHG mittd indirctly (kg) GWP of th GHG) Tchnical Guidanc for Calculating Scop 3 Emissions [121]

10 Exampl [11.2] Calculating indirct us-phas missions from products that indirctly consum nrgy (fuls or lctricity) during us Company A producs laundry soap, which indirctly ntails consumption of lctricity during th us phas. Company A collcts data from consumr journals rgarding th avrag consumr bhavior in washing cloths and obtains avrag lctricity mission factors from lif cycl databass. Th data is summarizd in th tabl blow: Usag tmpratur stting Liftim uss pr product (washs) Consumrs using tmpratur stting (prcnt) Products sold Elctricity consumd pr us (kwh) Emission factor (kg CO 2 /kwh) 30 C cotton wash C cotton wash 1, , C cotton wash Not: Th activity data and missions factors ar illustrativ only, and do not rfr to actual data. missions for ach us phas scnario is calculatd as follows: (total liftim xpctd uss of product % of total liftim uss using this scnario numbr sold in rporting priod lctricity consumd pr us in this scnario (kwh) mission factor for lctricity (kg CO 2 /kwh)) 30 C cotton wash: 1, , = 80,000 kg CO 2 40 C cotton wash: 1, , = 200,000 kg CO 2 90 C cotton wash: 1, , = 480,000 kg CO 2 total missions from us of sold products = missions from 30 C + missions from 40 C + missions from 90 C = 80, , ,000 = 760,000 kg CO 2 Tchnical Guidanc for Calculating Scop 3 Emissions [122]

11 Calculation mthod for sold intrmdiat products Whn a company slls an intrmdiat product that dirctly mits GHGs in its us phas, it is rquird to account for dirct us-phas missions of th intrmdiat product by th nd usr, (i.., missions rsulting from: th us of th sold intrmdiat product that dirctly consums ful or lctricity during us; fuls and fdstocks; GHGs rlasd during product us). Companis may optionally includ th indirct us-phas missions of sold intrmdiat products. In crtain cass, th vntual nd us of sold intrmdiat products may b unknown. For xampl, a company may produc an intrmdiat product with many potntial downstram applications, ach of which has a diffrnt GHG missions profil and b unabl to rasonably stimat th downstram missions associatd with th various possibl nd uss. In such a cas, companis may disclos and justify th xclusion of all downstram missions rlatd to sold intrmdiat products. For mor information, s sction 6.4 of th Scop 3 Standard (Accounting for downstram missions). Activity data ndd Typ(s) of final product(s) producd from rporting company s intrmdiat product(s) Prcntag of rporting company s intrmdiat product sals going to ach typ of final product Activity data rquird to calculat th us-phas mission of th final product will b th sam as dscribd prviously in this chaptr. Emission factors ndd Dpnding on th typ of final product, mission factors rquird will b th sam as dscribd arlir in this chaptr. Calculation formula [11.5] Us-phas missions from sold intrmdiat products Us-phas CO 2 missions of sold intrmdiat products = sum across sold intrmdiat products total us phas missions: (total intrmdiat products sold total liftim uss of final sold product missions pr us of sold intrmdiat product (kg CO 2 /us)) Tchnical Guidanc for Calculating Scop 3 Emissions [123]

12 Exampl [11.3] Calculating us-phas missions from sold intrmdiat products Company A manufacturs ngins usd in airplans. It sold 10 ngins to an airplan manufacturr. Numbr of ngins sold Wight of ach airplan (tonns) Wight of ach ngin (tonns) Total liftim uss of final products (km flown by airplan) Emissions pr us of final product (kg CO 2 /km flown) , Not: Th activity data and missions factors ar illustrativ only, and do not rfr to actual data Company A works out th dirct us-phas missions of its sold ngins as follows: total us phas missions = (total intrmdiat products sold total liftim uss of final sold product missions pr us of sold intrmdiat product (kg CO 2 /us) (wight of ngin / wight of airplan)) 20 = (10 300, ( )) = 36,000 kg CO In this xampl, physical allocation is most suitabl. Th allocation is basd on th wight of th ngin as a proportion of th total wight of th airplan. For allocation ruls rfr to sction 8 of th Scop 3 Standard. Tchnical Guidanc for Calculating Scop 3 Emissions [124]

The author(s) shown below used Federal funds provided by the U.S. Department of Justice and prepared the following final report:

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