Summary: This is an extract from Chapter 5.
Category 9: Downstream transportation and distribution
This category includes emissions from transportation and distribution of products sold by the reporting company in the reporting year between the reporting company’s operations and the end consumer (if not paid for by the reporting company), in vehicles and facilities not owned or controlled by the reporting company. This category includes emissions from retail and storage. Outbound transportation and distribution services that are purchased by the reporting company are excluded from category 9 and included in category 4 (Upstream transportation and distribution) because the reporting company purchases the service. Category 9 only includes transportation- and distribution-related emissions that occur after the reporting company pays to produce and distribute its products. See table 5.7 for guidance on accounting for emissions from transportation and distribution in the value chain.
Emissions from downstream transportation and distribution can arise from:
- Storage of sold products in warehouses and distribution centers
- Storage of sold products in retail facilities
- Air transport
- Rail transport
- Road transport
- Marine transport
Companies may include emissions from customers traveling to retail stores in this category, which can be significant for companies that own or operate retail facilities. See section 5.6 for guidance on the applicability of category 9 to final products and intermediate products sold by the reporting company. A reporting company’s scope 3 emissions from downstream transportation and distribution include the scope 1 and scope 2 emissions of transportation companies, distribution companies, retailers, and (optionally) customers.