What is Scope 3 Category 8: Upstream leased assets?

What is Scope 3 Category 8: Upstream leased assets?‍

In GHG Protocol terms, Category 8 includes emissions from the operation of assets leased by your organisation in the reporting year, where those emissions are not included in your Scope 1 or Scope 2 inventory. This usually means energy used in leased buildings (electricity, heating), and in some cases leased vehicles or equipment, when the way the lease is set up or the organisational boundary you’ve chosen means the emissions are counted in Scope 3 rather than Scope 1 or 2.

Category 8 is about assets you lease and use. It is different from Scope 3 Category 13 (Downstream leased assets), which relates to assets you own and lease out to others. It is also different from Scope 2, which covers purchased electricity you include within your Scope 2 boundary.

Examples of Scope 3 Category 8: Upstream leased assets‍

What counts depends on what you lease and how your reporting boundary is set, but common examples include:

• Electricity and heating in leased offices where utilities are paid via a service charge or controlled by the landlord (and not captured in your Scope 2)
• Leased warehouses or operational sites where you don’t control the energy contracts and emissions are reported as Scope 3
• Leased vehicles or equipment where fuel or electricity use is not already included in your Scope 1 or 2 datasets
• Shared buildings or co-working spaces where only partial energy information is available and you need to estimate your share

How to calculate Scope 3 Category 8: Upstream leased assets‍

The GHG Protocol approach is typically activity-based, and often looks like:

• List the leased assets that are not already included in Scope 1 or 2
• Collect energy and activity data (kWh electricity, heating fuels, mileage, hours of use, floor area and time)
• Where direct data is missing, use a reasonable proxy (for example, floor area multiplied by an energy intensity benchmark)
• Apply relevant emission factors (electricity factors by region or supplier, fuel factors)
• Sum across leased assets

In practice, teams often combine data sources:

• Lease agreements and landlord utility statements (or service charge breakdowns)
• Building management reports (energy use, floor area, occupancy)
• Fleet or equipment logs (mileage, operating hours)
• Benchmarks for energy intensity when landlord data is limited

How to reduce Scope 3 Category 8: Upstream leased assets‍

Because these emissions are driven by energy use and building or asset performance, reductions usually come from efficiency, better data, and landlord engagement, for example:

• Work with landlords: request better energy data, efficiency upgrades, and lower-carbon electricity options
• Improve what you control: efficient lighting, controls, IT equipment, and fit-out choices
• Optimise space: reduce unused area, consolidate sites, or adjust occupancy patterns
• Choose better leases: prioritise buildings with strong energy performance and clearer utility data
• Reduce operational energy: simple measures like better settings, schedules, and maintenance
• Focus first on the biggest sites: start with the leased locations and assets driving most of the footprint