Downstream scope 3 emissions of franchisees that occur during operation of franchises (e.g., from energy use). This is to include only the operational emissions of these companies (GHG Protocol scope 1 and 2 emissions)

Scope 3 emissions are all indirect emissions – not included in scope 2 – that occur in the value chain of the reporting company, including both upstream and downstream emissions. In other words, emissions that are linked to the company’s operations.

Activities covered by scope 3 emissions are diverse, but sit in two high level categories; upstream emissions related to purchased or acquired goods and services, and downstream emissions related predominantly to the sales of goods and services.

Franchises are businesses operating under a licence to sell or distribute another company’s goods or services within a certain location. Franchisees (e.g. companies that operate franchises and pay a fee to the franchisor) should include emissions from operations under their control. “Franchisees may optionally report upstream scope 3 emissions associated with the franchisor’s operations (i.e., the scope 1 and scope 2 emissions of the franchisor) in category 1 (Purchased goods and services).”

For this Log emission category, users have the option to directly enter a unit of CO2 equivalent. For additional information on the calculation of emissions from Franchises, users can refer to the GHG Protocol Guidance. Please get in touch with our team if there is a frequent need to make use of this Log emission category and you require additional support in the calculation of emissions.