Accounting for emissions from department store counters

General
1

Hello! I have a question on accounting for emissions associated with department store counters.

We have are working with a client who has counters in various departments store where they sell their products. They obviously do not have financial or operational control over the space that they use. In addition to this, the operations are being handled by the department store (i.e. personnel are department store employee etc etc).

So my questions are:

  • Should the client account for these emissions?
  • If they should, what category should I account for emissions associated with the operation of this stand? My initial thoughts are accounting for them in Category 8

Thanks in advance!

2

Hi Bianca,

Thanks for your question!

I don’t think your use case (using/renting a part of an asset) is fully covered by the GHG Protocol as the leased assets activity category (3.8) is there for assets of which the reporting company could have control, depending on the consolidation approach you apply (which is not the case here)/

I think you can apply two approaches:

  1. Account for it in 3.1 (Purchased Goods&Services) as you can’t really asign it to the strict definition of one of the other activity categories. Then you need to account for all cradle-to-gate emissions.
  2. Account for it in 3.8 (Leased assets) as it most closely follows the boundaries of that activity category. Then you need to account for the scope 1 and scope 2 emissions of the operation of the shops. Optionally, you could account for the life cycle emissions associated with manufacturing or
    constructing leased assets (but not the full cradle-to-gate emissions as for 3.1).

It feels more natural the follow the same logic as if you would be renting the full department store (and thus account for it in scope 3.8).

Hope this helped. Happy to hear your thoughts on it.
The best,
Steven

1 Like
3

Hi Steven!

Thanks for that. Super super helpful to hear your view on it :grinning:.