What is Scope 3 Category 13: Downstream leased assets?

What are Scope 3 Category 13: Downstream leased assets emissions?

Category 13 includes emissions from the operation of leased assets that are owned by the reporting organisation (the lessor) and leased to another entity (the lessee), where those emissions are not already included in the reporting organisation’s Scope 1 and 2. In simple terms, if you own an asset but someone else operates it day to day, the emissions from running it may sit in Scope 3 Category 13.

This category typically covers Scope 1 and Scope 2 type emissions at the leased asset (for example, fuel burned on-site, electricity and heat used, refrigerant leakage). It is different from Scope 3 Category 8 (Upstream leased assets), which is about assets you lease in and use as part of your operations.

Examples of Scope 3 Category 13: Downstream leased assets emissions

What counts depends on what you lease out, but common examples include:

• Leased buildings or space you own, where tenants control utilities (electricity, gas, heating and cooling)
• Warehouses or industrial units leased to third parties
• Leased equipment you own (e.g. machinery, printers, IT hardware), where the lessee uses the energy to run it
• Leased vehicles or fleet assets you own, where the lessee controls fuel use and operation
• Refrigerants and leakage from cooling equipment in leased spaces (where relevant and not under your operational control)

In practice, Category 13 is often dominated by electricity and heating fuels used in leased buildings, depending on lease structure and who pays the utility bills.

How to calculate Scope 3 Category 13: Downstream leased assets emissions

The GHG Protocol approach is typically to use activity data for leased assets and apply standard emission factors, using the best available data you can access. Common approaches include:

• Lessee-reported (preferred): collect actual energy, fuel, and refrigerant data from lessees for the leased assets, then calculate emissions using relevant emission factors
• Utility and building-data method: use meter data where you have access (even if the lessee pays), or landlord systems that track consumption by unit
• Average-data (activity-based): where primary data is not available, estimate based on floor area, building type, occupancy, or typical energy intensity benchmarks, then multiply by appropriate emission factors

Key inputs usually include an asset register (what is leased out, where, size/type), lease details (who controls utilities and operations), and energy and fuel consumption data where available.

How to reduce Scope 3 Category 13: Downstream leased assets emissions

Because the emissions come from how others operate your assets, reductions typically come from asset efficiency, lease design, and tenant engagement, for example:

• Improve asset efficiency: invest in building fabric upgrades, efficient HVAC, lighting, insulation, controls, and low-leak refrigerant systems
• Make performance visible: sub-metering, clear utility data access, and simple reporting requests can help tenants understand and manage energy use
• Use “green lease” clauses where appropriate: align on data sharing, efficiency standards, and upgrade plans at renewal points
• Support tenants to act: provide practical guidance, preferred suppliers, and upgrade pathways that reduce energy costs as well as emissions
• Prioritise hotspots: start with the assets that are largest, most energy-intensive, or have the longest lease terms, where improvements can deliver the biggest impact

Seedling helps teams measure Scope 3 Category 13 in line with the GHG Protocol, set up a practical data collection approach with tenants, and identify realistic efficiency actions that reduce emissions without making reporting feel heavy.