Applicability of downstream scope 3 categories to final and intermediate products
Upstream emissions are applicable for all types of purchased products. The applicability of downstream scope 3 categories depends on whether products sold by the reporting company are final products or intermediate products. (See box 5.3 for descriptions of final and intermediate products.) If a company produces an intermediate product (e.g., a motor), which becomes part of a final product (e.g., an automobile), the company accounts for downstream emissions associated with the intermediate product (the motor), not the final product (the automobile). Table 5.11 explains the applicability of downstream scope 3 categories to final and intermediate products sold by the reporting company. See section 6.4 for guidance on disclosing and justifying exclusions of downstream emissions from sold intermediate goods when their eventual end use is unknown.
Table 5.11
| Scope 3 category | Applicability to final products | Applicability to intermediate products |
|---|---|---|
| 9. Downstream transportation and distribution | Transportation and distribution of final products, between the point of sale by the reporting company to the end consumer, including retail and storage | Transportation and distribution of intermediate products between the point of sale by the reporting company and either 1) the end consumer (if the eventual end use of the intermediate product is known) or 2) business customers (if the eventual end use of the intermediate product is unknown) |
| 10. Processing of sold products | Not applicable to final products | Processing of sold intermediate products by customers (e.g., manufacturers) |
| 11. Use of sold products | The direct use-phase emissions of sold final products by the end user (i.e., emissions resulting from the use of sold final products that directly consume fuel or electricity during use, fuels and feedstocks, and GHGs or products that contain GHGs that are released during use). Companies may optionally include the indirect use-phase emissions of sold final products (see table 5.8) | The direct use-phase emissions of sold intermediate products by the end user (i.e., emissions resulting from the use of sold intermediate products that directly consume fuel or electricity during use, fuels and feedstocks, and GHGs or products that contain GHGs that are released during use). Companies may optionally include the indirect use-phase emissions of sold intermediate products (see table 5.8) |
| 12. End-of-life treatment of sold products | Emissions from disposing of sold final products at the end of their life | Emissions from disposing of sold intermediate products at the end of their life |
| 13. Downstream leased assets | Unrelated to product type: Applicable to all companies with downstream leased assets | Unrelated to product type: Applicable to all companies with downstream leased assets |
| 14. Franchises | Unrelated to product type: Applicable to all companies with franchises | Unrelated to product type: Applicable to all companies with franchises |
| 15. Investments | Unrelated to product type: Applicable to all companies with investments | Unrelated to product type: Applicable to all companies with investments |