Scope 3 Guidance

for Telecommunication
Operators

This guidance has been jointly developed by the GSM Association (GSMA),
the Global Enabling Sustainability Initiative (GeSI) and the International
Telecommunication Union (ITU-T).

The GSMA is a globalorganisation unifying themobile ecosystem to discover,develop and deliver innovation
foundational to positive
business environments andsocietal change. GSMA’s
vision is to unlock the fullpower of connectivity sothat people, industry andsociety thrive. Representing
over 750 mobile operatorsand organisations across themobile ecosystem andadjacent industries, the GSMA
delivers for its members
across three broad pillars:
Industry Services andSolutions, Connectivity for
Good, and Outreach.

ITU is the United Nations
specialised agency for
information andcommunication
technologies (ICTs), driving
innovation
in ICTs with a global
membership including
193 Member States andmore than 900 companies,
universities andinternational and regionalorganisations. Established in
1865, ITU is responsible forthe global coordination ofradio-frequency allocations
and satellite orbits, thedevelopment ofinternational technicalstandards, and supporting
the improvement of ICT
infrastructure in developing
countries.
ITU-T Study Group 5 on
Environment,
Electromagnetic Fields andCircular Economy leads ITU
standardisation
work on sustainable digitaltransformation, developing
standards on the use of ICTs
to tackle environmental
challenges in line with
the UN Sustainable
Development Goals and the
UN Framework Convention

GeSI works with a range ofinternational stakeholders
committed to informationand communication
technology (ICT)sustainability andsupports member initiatives
in countries that tackle
climate change, energy andresource efficiency, privacy
and security, digital literacy
and digital divide, humanrights, as well as fosteringcollaborative and innovative
approaches, ideas andjoint initiatives. With thesepartnerships, GeSI isable to work towards its
global vision of a greater
evolution of the ICT sector
to best meet the challenges
of sustainable development.

Acknowledgements
A special thank you to:Jean-Manuel Canet (Orange/ITU-T SG5 Rapporteur)
Alexander Campbell (TDC NET)
Simon Antony (Telstra Group)
Chris Tuppen (Advancing Sustainability/GeSI)
Pernilla Bergmark (Ericsson/ITU-T SG5 Rapporteur)
Reyna Ubeda (ITU)John Pflueger (Dell)
Steven Moore (GSMA)
Varnika Srivastava (GeSI)The GSMA, GeSI and the ITU would also like to thank the following
organisations for their contributions and support, without which it
would not have been possible to develop this guidance:
Accenture
A1
America Movil
APDC
Arcep (France)
AxiataBell
BT Group
CAICT (China)
CSCP
CK Hutchison
Colt
Dassault Systemes
Dell
Deloitte
Deutsche Telekom
Elisa
Equinix
EricssonE&
HitachiHuaweiIBM
JT Global
KDDI
KPMG
KPN
Liberty Global

Lumen
MTS
NEC Labs
Nokia
NOS
NTT
Optus
OrangeProximusRogersSoftbank
Superior Essex Communications
Swisscom
T-Mobile US
Taiwan Mobile
TDC NET
Telefonica
Telenor
Telia
TelstraTelus
TIM
Turk Telecom
Unipartner
VerizonVodafone
Zain
ITU-T Study Group 5 experts

Contents
Introduction

5

Abbreviations and acronyms

7

Overview of Scope 3 categories

8

General guidance

9

Category 1 and 2 – Purchased Goods and Services andCapital Goods

12

Category 3 – Fuel and Energy Related Activities

24

Category 4 – Upstream Transportation and Distribution

27

Category 5 – Waste Generated in Operations

33

Category 6 – Business Travel

37

Category 7 – Employee Commuting

41

Category 8 – Upstream Leased Assets

46

Category 9 – Downstream Transportation and Distribution

55

Category 10 – Processing of Sold Products

57

Category 11 – Use of Sold Products

58

Category 12 – End-of-Life Treatment of Sold Products

64

Category 13 – Downstream Leased Assets

67

Category 14 – Franchises

69

Category 15 – Investments

71

Reporting74

Appendix75

Bibliography

76

Introduction
Across the information and communication
technology (ICT) sector, companies are
responding to the climate crisis and risinggreenhouse gas (GHGs) emissions. ICT
companies are committing to reduce not
only their own GHGs, but also the emissions
resulting from their value chain, including
their supply chain and customers.
Many companies are linking theircommitments to the Science-Based Target
Targets initiative [SBTi] and having themvalidated as Science-Based Targets (SBTs).
For this, an accurate assessment of GHGs isessential to understanding and achieving
SBTs. Two types of SBT’s exist: long-term
net zero targets and interim targets. Morespecifically, ITU-T, GeSI and the GSMA havepreviously established a 1.5˚C aligned
decarbonisation trajectory for the ICT sector
that requires a reduction of 45% between
2020 and 2030 ITU-T L.14701 [SBTi]. ITU-T
L.14712 provides further guidance for further
reductions to achieve net zero.

Reporting standards
The most widely used framework forestablishing inventories of GHG emissions ofcompanies is the Greenhouse Gas Protocol(GHGP) [GHGP-1], and many companies
have been publishing the outcome of theirinventories for many years. In addition,
the guidance from the International
Standardization Organization is given in
ISO 14064-1: 20183, and national authorities
provide guidance, e.g. the Bilans GES site4
in France. Referring to organisations andcompanies in the ICT sector, ITU-T L.14205
gives specific guidance. However, current
methodologies/guidelines for value chain
reporting do not give enough practicalguidance. Historically, this type of reportinghas been seen as a voluntary add-on,
but it has now become part of expected
mainstream GHG reporting.

1
2
3
4
5

Scope 3 emissions
Current reporting of a company’s own
emissions (referred to as Scope 1 and 2) isoften comprehensive. However, the inventoryof value chain emissions (referred to as
Scope 3) is more difficult, since this refers toemission sources outside the company’s directcontrol, and this reporting is less complete
than reporting of a company’s own emissions.
There is also substantial variation in reporting
by ICT companies of Scope 3 with respect tocoverage and transparency, making it hardto derive any trends. In particular, it is hard to
make any generalised conclusions regarding
the distribution of emissions between Scope 1,
2 and 3, let alone between Scope 3 Categories.
Also, the variation between electricity mixes
in different markets has a great impact on the
distribution of emissions. Many ICT companies
are active in several countries while data ispresented at a company level making it evenharder to understand the relative magnitudeof Scope 2 and 3. However, while the ratio
between Scope 1, 2 and 3 emissions is
supposed to vary across ICT operators,
Scope 3 emissions often represent thosethat are the most substantial. See Figure 1.
This guidance harmonises methods fortelecommunication operators to assess andreport their Scope 3 GHG emissions, and toincrease its coverage, and transparency. Basedon criteria including association with theportfolios, control and complexity of reporting,this guidance prioritises Categories 1 to 2
and 11 (which addresses the life cycle impact
of company portfolios) in particular andCategory 3 (which is closely linked to Scope 1
and 2), although all Categories are addressed.
This guidance is intended to supplement, notsupersede, existing standards. Thus, different
parts present various levels of detailed
guidance, as needed. Telecommunication
operators wanting to claim conformity toother standards would need to consult themand cannot refer solely to this guidance.

ITU (2020), Recommendation ITU-T L.1470 (2020), Greenhouse gas emissions trajectories for the information and communication technology
sector compatible with the UNFCCC Paris Agreement. Developed in cooperation with GSMA, GeSI and SBTi.
Recommendation ITU-T L.1471 (2021), Guidance and criteria for information and communication technology organisations on setting Net Zerotargets and strategies.
Greenhouse gases — Part 1: Specification with guidance at the organisation level for quantification and reporting of greenhouse gas emissions
and removals.
bilans-ges.ademe.fr/en/accueil
ITU (2012), Recommendation ITU-T L.1420 (2012), Methodology for energy consumption and greenhouse gas emissions impact assessment of
information and communication technologies in organisations.

Introduction

5

Figure 1 | Overview of Scope 1-3 emission Categories

CO2

SCOPE 3
INDIRECT (UPSTREAM)
1. Purchased goods
and services
2. Capital
goods

CH4

N2O

HFCs

PFCs

SCOPE 1
DIRECT

SCOPE 2
INDIRECT
Purchased
electricity,
steam, heating
and cooling forown useSF6

SCOPE 3
INDIRECT (DOWNSTREAM)

Company
facilities

9. Transportationand distribution

Company
vehicles

10. Processing ofsold products
11. Use of soldproducts

3. Fuel andenergy-related
activities

12. End-of-life
treatment ofsold products

4. Transportationand distribution

13. Leased
assets . Waste
5
generated
in operations

14. Franchises

6. Businesstravel15. Investments

7. Employee
commuting
8. Leased
assetsReporting company

Upstream activities

Downstream activities

Source: GHG Protocol, Corporate Value Chain (Scope 3) Accounting and Reporting Standard

A particular category of ICT companies
consists of telecommunication network
operators. This guidance is to support suchcompanies by providing specific guidance
that help their inventories and increasealignment between reporting companies.
Introduction6Abbreviations and acronyms
CPE

Customer Premises Equipment

CO2e

Carbon Dioxide Equivalent

EEIO

Environmentally Extended Input-Output Analysis

EF

Emission Factor

ESCO

Energy Services Company

GHG

Greenhouse Gas

GHGP

Greenhouse Gas Protocol

GVW

Gross Vehicle Weight

ICT

Information and Communication Technology

IoT

Internet of Things

IT

Information Technology

JV

Joint Venture

LCA

Life Cycle Assessment

PCF

Product Carbon Footprint

SBTi

Science-Based Target InitiativeTV

Television

Wi-Fi

Wireless Fidelity

Abbreviations and acronyms

7

Overview of
Scope 3 categories
Scope 3 emissions cover a wide range of
economic activities that are divided into 15
categories. These categories are introducedin GHGP-1 and detailed in Table 5.4 of the
Corporate Value Chain (Scope 3) Accounting
and Reporting Standard [GHGP-2].
Based on the prioritised activities for ICT
companies outlined in ITU-T L.14206 and SBTi,
the most significant categories for a network
operator Scope 3 evaluation are as follows:• Purchased goods and services(category 1) including but not limited to:» purchases related to offered services(cradle-to-gate)» purchases related to used services(life cycle)• Capital goods (category 2), including:» own information technology (IT)equipment (cradle-to-gate)» own telecommunication towers» machinery• Fuel and energy-related activities(category 3) are:» associated with the organisations own
Scope 1 and Scope 2 emissions» see clarification in Category 3 section
on EFs• Upstream leased assets (category 8),
such as:» leased IT equipment (cradle-to-gate)» leased telecommunication towers(Towercos)» leased IT or telecommunication facilities(cradle-to-gate)• Use of sold products (category 11),
including Scopes 1 and 2 emissions:» operation of products and services» use of support equipment necessary tooperate the equipment (power supply
and cooling)• Downstream leased assets (category 13),such as:» Scopes 1 and 2 emissions due to operationof provided products and services

6

ITU (2012), Recommendation ITU-T L.1420 (2012), Methodology for energy consumption and greenhouse gas emissions impact assessment of
information and communication technologies in organisations.

Overview of Scope 3 categories

8

Notes on scope and boundary of this guidance
Cradle-to-gate is defined as all GHG
generating processes from the raw materials(e.g. mines for metal ore) to the gate of theoperator. The gate of the operator refers to
the arrival point of a purchased product.
 owercos are not mentioned in ITU-T L.14207
T
but are listed in this guidance as these areimportant from the perspective of operators.
Appendix I of ITU-T L.14208 provides a more
extensive list covering further sources and all
Scope 3 categories.
Scope 3 category 11 in the GHGP [GHGP-2]
refers to the use-stage impacts at a firstorder level of effects (footprint) of the useof ICT sold products. This is not to be
confused with all the second and higher orderconsequences of the use of those ICT soldproducts, as referred to in ITU-T L.14809.

Scope 1, 2 and 3 assessments do not cover
the wider effect of GHG emissions of ICT
organisations. Guidance to assess second
order effects (e.g. enabling effects/avoided
emissions) and higher order effects (e.g.
rebound) is available in [b-L.14809].
For further information, please see the following
existing sector-specific guides to understandand determine which Scope 3 Categories toprioritise and include based on materiality
and relevance for a company’s Scope 3 target
setting and subsequent reporting:• Guidance for ICT Companies setting sciencebased targets [SBTi] (with contents equivalent
to ITU-T L.Suppl.37)10• Mobile network operators – A step-by-stepguide for mobile network operators to setting
climate targets11• ITU-T Recommendations ITU-T L.142012, ITU-T
L.147013 and ITU-T L.147114

General guidanceThis chapter provides guiding principles
on how operators should assess Scope 3
emissions that are applicable to all
Scope 3 Categories.
The main intention of this guidance is toprovide consistency for telecommunication
operators to calculate GHG emissions intheir upstream and downstream value
chains. It provides methodologies that areconsistent with recommendations of the

7
8
9
10
11
12
13
14

Greenhouse Gas Protocol for calculating
emissions, which are tailored for eachdifferent Category.
The methodologies for each Category
have been structured so that they areboth useful and accessible for companies
that are just getting started, as wellas those that are more advanced intheir calculation, measurement andassessment capabilities.

ITU (2012), Recommendation ITU-T L.1420 (2012), Methodology for energy consumption and greenhouse gas emissions impact assessment of
information and communication technologies in organisations.
ITU (2012), Recommendation ITU-T L.1420 (2012), Methodology for energy consumption and greenhouse gas emissions impact assessment of
information and communication technologies in organisations.
ITU (2022), Recommendation ITU-T L.1480 (2022), Enabling the Net Zero transition: Assessing how the use of ICT solutions impacts GHG emissionsof other sectors.
ITU (2020), Supplement ITU-T L.Suppl.37 (2020), Guidance to operators of mobile networks, fixed networks and data centres on setting 1.5°Caligned targets compliant with Recommendation ITU-T L.1470
www.gsma.com/betterfuture/wp-content/uploads/2020/03/Setting_Climate_Targets_singles.pdf#page=34
ITU (2012), Recommendation ITU-T L.1420 (2012), Methodology for energy consumption and greenhouse gas emissions impact assessment of
information and communication technologies in organisations.
ITU (2020), Recommendation ITU-T L.1470 (2020), Greenhouse gas emissions trajectories for the information and communication technology
sector compatible with the UNFCCC Paris Agreement. Developed in cooperation with GSMA, GeSI and SBTi.
Recommendation ITU-T L.1471 (2021), Guidance and criteria for information and communication technology organisations on setting Net Zerotargets and strategies.

General guidance9

Prioritisation and enhancements
When assessing Scope 3 emissions, an initial
screening of the magnitude of impacts
is recommended, and then prioritisationof categories and sources that have thehighest impact for further assessment.
This is because a more accurate
measurement or assessment of a Categorythat forms 20% of emissions, for example,
will have a greater impact on the total result
than accurately measuring a Category that
only contributes 1% of emissions.
There is also recognition that Scope 3
emissions assessment can be a daunting
task, as it involves the collection andcombination of many data points. Operators
should not expect to achieve a complete
assessment when doing it for the first time.
Most companies look to improve from year
to year as data availability and quality
increases and more standardised advice,
such as this guidance, is made available.
For the same reasons, this guidance will
be subject to revision, as improvements toassessments are developed by the industry.

Electricity emission factors
A network operator footprint largely
depends on the use of electricity andits carbon intensity. For this reason, theemission factor (EF) of grid electricity
is important.
According to Life Cycle Assessment (LCA)
practice, the electricity supply chain,transmission and distribution losses that
occur between the point of production
and the actual consumption of electricity
are allocated to the ICT product footprint.
However, for Scope 1 and 2 reporting all
but the impacts occurring during theconsumption are excluded, and instead
allocated to Scope 3 (Category 3).
Consequently, the emission allocated toCategory 3 includes those corresponding
to the electricity supply chain andtransmission and distribution losses
for Scope 1 and 2 emission sources.
For other Scope 3 Categories, the EFs
to be used should include these impacts(i.e. electricity supply chain, transmission
and distribution losses) when possible.

15
16

When economic modelling is used, forinstance for Categories 1 and 2 of the Scope 3,
it may not be possible to include the impactsof electricity supply chain and transmission
and distribution losses. The reporting shallclarify any exclusion of electricity supply
chain, transmission and distribution losses
whether in Category 3 or others.
The EFs for electricity must be specific tothe conditions during which the electricity
is consumed. This is because they are
dependent on the energy mix of the grid, theorigin of the fossil fuels and their mode oftransport, as well as the effectiveness of thegrid to deliver electricity. Commonly usedsource for EFs are the “Conversion Factors:
Full Set” ([DESNZ] see WTT and overseas
electricity), published annually by the UK
Government Department for Energy Security
and Net Zero and the Department15 forBusiness; or the French ADEME database16
by the Agence de la Transition Écologique;or the US EPA database, the SEAI database,the RTE database; or the International
Energy Agency (IEA) “Emission Factors
Database”. More grid specific sources are
preferable, especially if primary data isavailable from the utility that operates theelectricity grid or the provider of electricity.
When selecting an EF, several options may
exist (e.g. at combustion only, with andwithout transmission and distribution losses).
Moreover, it is important to consider importand export of electricity at a country levelfor calculation, according to the locationbased approach.
The most recent data is always preferred;however, the most recent grid electricity
average EFs (e.g. EEA, IEA) available atany given point in time often may notreflect the situation in the reporting year,
as they are derived from national GHG
inventories, and these are usually released
with a two-year delay. A similar situation
occurs with annual supplier specific EFs:
even in countries where electricity labellingis mandatory, at the time when most
corporate GHG inventories are prepared(January to February of the following year),
information for the reporting year is, in manycases, still not available, and data from theprevious year is the best available option.

www.gov.uk/government/collections/government-conversion-factors-for-company-reportingbilans-ges.ademe.fr/en/accueil

General guidance10Note: Examples of free sources of data follow:• Electricity factors for the US can be foundhere• The SEAI publishes factors for Ireland,
found here
• The RTE publishes the French electricity
factor, found here
• The European EA found here

Generally, the principle of getting the mostaccurate EFs should prevail.

Activities in other economic sectors
As some telecommunication operators areactive in other sectors than informationand communication technologies, such as
banking or energy resell, it is recommended
that the Scopes 1 to 3 of these activities
be reported separately from theirtelecommunication activities.

Further guidance related to specific EF
considerations for each Category isprovided in the different chapters.

Guiding principles
The principles of this guidance are as follows:

17
18
19

Goal is reduction – estimating
emissions should be used todrive reduction efforts

Hot-spotting – focus timeand effort on largest emission
sources

Keep it simple – use thesimplest approach that will
give required accuracy andbest support reduction goals

Scale – covering more emissions
can help with business decisions

Improve accuracy over time –data availability and quality are
improving each year

Suitable for all – approaches
for both beginners and those
who are more advanced

 ollow science-based principlesF– related to net zero standards
from ISO 14064-1: 201817 or
the Science Based Targets
Initiative [SBTi] or ITU-T
Recommendations L.147018
and L.147119

Focus on mitigation – carbon
offsets, whether purchasedby the telecommunication
operator or a supplier orcustomer, shall not be
considered as a valid meansof reducing carbon dioxide
equivalent CO2e inventories

Greenhouse gases — Part 1: Specification with guidance at the organisation level for quantification and reporting of greenhouse gas emissions
and removals.
ITU (2020), Recommendation ITU-T L.1470 (2020), Greenhouse gas emissions trajectories for the information and communication technology
sector compatible with the UNFCCC Paris Agreement. Developed in cooperation with GSMA, GeSI and SBTi.
ITU-T L.1471 (2021), Guidance and criteria for information and communication technology organisations on setting Net Zero targets and strategies.

General guidance

11

01
02
03

Category 1

04

Purchased Goods
and Services

05
06
07
09

Capital Goods

08

Category 2

10
11
12
13
14
15

01
02

Description

05
06
07
08
09

Purchased products (Category 1) include
goods (tangible products) other than capital
goods and services (intangible products).
Capital goods (Category 2) are final productsthat have an extended life and value.

In this chapter Categories 1 and 2 havebeen combined to provide one set of
guidance on how to calculate theseemissions. This approach is taken to alignwith general procurement practices oftelecommunication operators and therefore
represents a more efficient way to calculatethese emissions. The emissions from aparticular purchase should be reported aseither Category 1 or 2, and should not be
double counted. To determine whether toaccount for a purchase as a purchased goodor service (to be reported in Category 1) orcapital good (to be reported in Category2), companies are recommended to follow
their financial accounting classification.
For example, operational expenditure
not related to the purchase of energy is
to be reported in Category 1 and capital
expenditure is to be reported in Category 2.

04

This chapter provides guidance for companies
on how to calculate cradle-to-gate emissions
from purchased products and capital goods,
not accounted for in other Categories.
These are the emissions that arise from raw
material extraction, production, assembly
and transportation of products, as well as
capital goods purchased or acquired in thereporting year, not otherwise included in
Scope 1, 2 or 3 (Categories 3 to 8).

They are not immediately consumed
or further processed by companies but
are instead used by them to manufacture
a product, provide a service or sell, store,
and deliver merchandise.

03

Across all sectors, on average, supply chain
emissions are more than 10 times greaterthan operational emissions20. These emissions
are embedded in the products and capital
goods purchased or acquired by companies
from suppliers. Calculation of these emissions
improves a company’s ability to make more
informed decisions about their purchases
and acquisitions.

10
11
12
13
14
15

20

CDP - www.cdp.net

Category 1 and 2

13

01

Depreciated, discounted oramortised goods:

10
11
12
13

The total cradle-to-gate emissions frompurchased products and capital goods
shall be accounted for in the reporting
year in which the company purchased or
acquired them; see the GHGP [GHGP-2].
This approach differs from ISO 14064-1:
201821, which allows companies to depreciateemissions in line with economic depreciation.
This guidance has chosen to align with
the GHGP [GHGP-1] to ensure the timely
reporting of emissions that have taken place.
Therefore, the emissions from the productionof capital goods should not be depreciated,discounted, or amortised over time. As aresult of this approach, some emissions may
fluctuate from year-to-year due to purchasesof exceptional or non-recurring capital goods.
If this is the case, companies should provide
a rationale for these variations.

09

contributions or assessments required bya governmental body pursuant to legal
requirements or regulations (e.g. taxation),08• Regulatory payments, fees, charges,

Note: Currently the following Categories
are challenging to account for andapproaches differ greatly between
telecommunication operators: a) roaming
agreements; b) interconnects; andc) content or media licences. At thetime of publication, further alignment toprovide specific guidance is under study.

07

Examples06

While telecommunication operators have a
responsibility for their upstream emissions,as they go through the entries in theirpurchasing records, there are some paymentsthat they may choose to explicitly exclude.

subsidiaries within the same reporting
boundary, unless a transaction realises themwith an independent party, regardless ofwhether the subsidiary is wholly or partiallyowned. However, if the subsidiary is partly
owned, then the company can choose toinclude a proportion of the emissions using
the equity share consolidation approach.

05

Special exclusions:• Intercompany transactions between two

04

As per GHGP [GHGP-2], specific categories
of upstream emissions are separately
reported in Categories 3 to 8 to enhance
the transparency and consistency of Scope
3 reports, such as business travel, whichshould be reported under Category 6. See
Categories 3 to 8 to understand what shouldbe accounted for within them. All Categories
of emissions are mutually exclusive, and acompany should not double count emissions.
To help avoid double counting, a company
may choose to initially treat all purchases
not related to the purchase of energy as
Categories 1 and 2. As reporting advances,
extract from Categories 1 and 2 any purchasesthat are material or where more precise data
is available to report under Category 3 to 8.

as well as interest or penalties resulting
from non- or late payment.

03

Categories 1 and 2 include the cradle-to-gateemissions of all purchased products andcapital goods, not included in Categories 3
to 8 or listed under special exclusions.
For example, in the supply of goods,
this includes all upstream emissions up
to the point where the goods leave thesupplier’s factory (if the telecommunication
operator arranges the delivery) or when thetelecommunication operator takes receipt of
the goods (if the supplier provides delivery).

02

Category boundaries

14
15

21

Greenhouse gases — Part 1: Specification with guidance at the organisation level for quantification and reporting ofgreenhouse gas emissions and removals.

Category 1 and 2

14

03
04
05
06
07

Note: This is a relatively new area with many
complexities, which where necessary are still
under study.

02

The emissions from purchased goods
previously used should not include theemissions that arose from their extraction
from raw materials, production andtransportation associated with their
original manufacture. Emissions that arise
from any further extraction, production
and transportation associated with such
goods shall be accounted for by thetelecommunication operator for thereporting year in which they purchasedor acquired them. This includes the emissions
incurred by the supplier to make the goods
reusable (i.e. repair or refurbishment) prior
to purchase by the telecommunication
operator. Reused, refurbished and repaired
goods constitute items of property thatwere previously owned by another company
and restored to a usable condition prior
to the purchase where necessary by thetelecommunication operator. Examples
are a mobile device that has been usedby a customer before being reclaimedby the telecommunication operator or
network equipment that has been used bytelecommunication operator A, before being
refurbished or repaired by the same company
and purchased by telecommunication
operator B. In this example, company A
would account for the emissions that arosefrom the original manufacture of the network
equipment. Operator B would account forany emissions incurred by operator A to
make the network equipment available forpurchase. Goods that are being purchasedor acquired by a telecommunication operator
as new after a cosmetic refurbishment where
the item has not been used are specifically
excluded from reused, refurbished andrepaired goods. In this case, the productshould be accounted for in full, including
the emissions that arose from their
extraction from raw materials, production
and transportation associated with their
original manufacture.

01

Reused, refurbished or repaired
goods:

08
09
10
11
12
13
14
15

Category 1 and 2

15

01

• Vehicles acquired and used by the company
to service customers
Purchased products may include but are
not limited to:05• Items provided directly to customers orused by employees, such as devices

06• Services that relate to developing andprogramming software07• Providing technology support tocustomers and employees• Construction and physical network
infrastructure maintenance08• Non-core activities, such as professional
services and uniforms

09• Buildings and facilities for manufacturing
products or for delivering services, such asdata centres, telephone exchanges, subsea
cables and mobile towers• Machinery to produce mobile devices andnetwork equipment by manufacturers

04

Capital goods include but are not limited
to property, plant, and equipment, such as:

03

Emissions from purchased products(including goods and services) and capital
goods are significant, particularly in thetelecommunications industry, where there
are large and complex supply chains, thattelecommunication operators rely on
to operate their businesses and provide
goods and services. For example, they
include the emissions made by suppliers
when manufacturing equipment isinstalled in a telecommunications network.
Emissions from purchased products andcapital goods are often far greater than atelecommunication operators own Scope 1
and 2 emissions.

02

Applicability totelecom operators

10
11
12
13
14
15

Category 1 and 2

16

01
06

Note: This is the
spend-based method
and average-data
method of GHGP
[GHGP-1].

It is particularly usefulin screening emissions
sources when prioritisingdata-collection efforts.
In addition, there arefree sources, such as the
Quantis evaluator models[1]as well as geographicallyspecific sectorial models.

This method applies industry
averages that do not always provide
an accurate representation of theemissions from the products andcapital goods purchased by thecompany. This situation occurs often
in high-end ICT products that are
non-homogeneous. As a result, it isdifficult to measure and demonstrate
results of reduction efforts.

14
15

17

13

Category 1 and 2

The comparability of products
can be impaired by using different
industry EF databases. Oftenthese databases are not regularly
maintained, are not available in all
regions and are difficult to map
with company data. Moreover,industrial EFs based on economic
characteristics are sensitive to
conditions that have little relevancefor emission levels. As a result, it
is challenging to accurately reflect
a global supply chain or any
improvements in emission intensities.

12[1]
Quantis evaluator model is a free,
web-based tool from Greenhouse Gas
Protocol and Quantis to help companies
make an initial, rough approximation ofemissions throughout their value chain.

The use of industry averages also
creates a linear relationship between
activity data and emissions. As aresult, companies can only reduce
emissions by reducing activity, which
may not always be an effective way
for a company to run its business,make purchasing decisions ormonitor its Scope 3 targets.

11

This method is a simple
way of obtaining acomprehensive view of
emissions. It is the mostcost- and time-efficientmethod as the datarequirements are lessonerous.

10

Industry averagemethod, estimating
emissions by applying
relevant secondary(e.g. industry average)
EFs with physical or
economic activity
data.

09

Challenges

08

Benefits

07

Calculation method

A company can use thismethod as a placeholder
to monitor its own
Scope 3 targets until
more specific emission
data becomes available.

05

Table 1 | Summary of data, benefits and challenges

04

The first method uses secondary emissions
data (i.e. industry average data), whereas
the final two require companies to collectemissions data from suppliers. Collecting
emissions data from suppliers can add aconsiderable time and cost burden. Therefore,
companies should prioritise the collectionof such data for products and capital
goods that have relatively high emissions
or suppliers relevant to a company’s goals.
A practical recommendation is to gradually
improve emissions data over time startingwith the industry average method.

03

Companies may employ the frequently
used methods listed in Table 1 to calculate
emissions from purchased products andcapital goods. These methods are listedfrom the most general and simplistic tothose that are most specific and detailed.

02

Calculation methodSupplier-level
allocation method,
involves collecting
Scope 1, 2 and 3
upstream emissions
data from the supplierat a corporate,business unit,
facility or activity
level, together withphysical or economic
activity data.

This method provides anefficient, repeatable andscalable way of calculating
emissions specific toindividual suppliers at a
corporate, business unit,
facility or activity level.

Applying this method often results
in a single average emissions value
per supplier, which does not always
provide an accurate representationof the emissions from the products
and capital goods purchased by thecompany. This situation often occurs
in high-end ICT products that could
have non-homogeneous impacts.

08
09This method is less efficient andscalable as it is more resourceintensive and requires specialist
skills and data that may not bereadily available.

10

The accuracy of this method
at a product-level can also be
significantly reduced by theuse of broad assumptions andhigh-level EFs.

11
12
13

Note: This is the
supplier-specificmethod of [GHGP-1].

14

This method is considered
the most detailed. Based on
simplified LCA, it provides
a way of calculatingproduct emissions acrossapplicable parts of theirlifecycle. It is introduced
here for Categories 1 and2, but it could also help toprovide input for several
other Categories. It enables
companies to monitor
product performance andmake informed decision
about their purchases andthe eco-design of productsthat can have a direct impact
on emissions. It also helps
companies to monitor theirown Scope 3 targets.

07

Product-level
method, involves
collecting physicalactivity data andproduct-level
cradle-to-gate
GHG inventory
data from suppliers.
Can also include
lifecycle-level
data (LCA- based
approach – see
first note).

06

Using this method allows
an operator to follow theenvironmental and carbon
performance, as well as
future commitments of their
suppliers corresponding to
the granularity of the data.

05

It enables companies tomonitor supplierperformance and makeinformed decision about
their suppliers to drive
emissions reductions beyond
their own company. It also
helps companies to monitor
their own Scope 3 targets.

This method is more resourceheavy than the industry averagemethod. The reliance on complete
Scope 1, 2 and 3 data provided bysuppliers, requires checking key
data points and potential follow-up
with suppliers. There can also bea lag between when emissions
occur and when they are reported.
Coverage of cradle-to-gate
and cradle-to-grave scopes ischallenging. However, the supplierlevel allocation method (economic
activity data) can reach thiscoverage if formulae are usedconsistently by all tier suppliers
upstream and downstream.

04

Note: This is similar
to the hybrid andsupplier-specificmethods of [GHGP-1].

This method allows forlarge-scale engagementwith suppliers, which helps
build awareness and focus
on emissions in a company’s
supply chain.

03

Challenges

02

Benefits

01

Calculation Method

15

Category 1 and 2

18

Calculation methods

06
07
08
09
10
11
12

The “accuracy derives from the granularityof the emissions data, the reliability of the
supplier’s data sources, and which, if any,
allocation techniques were used”24. Therefore,
the choice of calculation method depends
on several factors, including the company’sbusiness goals, the volume of emissions, theavailability of complete data and the qualityof available data. Figure 2 provides a decision
tree to help ICT companies determine themost appropriate calculation method foreach purchased product or capital good.
It is also important to recognise the different
attributes of each calculation method.
See Table 1 for a list of the calculation
methods and their benefits and challenges.

05

Companies may use different calculation
methods for different suppliers. Furthermore,companies may use different calculation
methods for different purchased products
or capital goods from the same supplier.
For example, where a supplier provides
network equipment and maintenance, thecompany can use methods that are more
specific for the equipment and less specificfor the maintenance. However, it is importantto understand that more specific calculation
methods may not always produce results thatare a more accurate or comparable, as thiswould also depend on the quality of data andthe feasibility of allocating data of a supplieracross its customers.

04
13

Companies that fail to rebaseline could
incur a large change in emissions, which
will result in a false interpretation. Wherea company is unable to recalculate theirbase year emissions, such as where data
is unavailable, then the company should
describe the impact of this on their emissions.
For example, if a company’s Category 1 or 2
emissions decrease by 10%, where 5% of this03

As more data gradually becomes available,companies are able to improve theircalculation methods. This may result inchanges in estimates of emissions yearover-year, that do not reflect actualchanges in emissions but the change inmodelling or data accuracy. If the change
results in an insignificant difference inemissions estimates, then many companies
are choosing not to “rebaseline”. For thisreason, it is important that companies
describe their approach when they reportthese emissions, as well as any changes overtime and their impact on their emissions.
If the change results in significant differencesin emissions estimates, companies are
required to recalculate their base year
emissions applying the new data sources
and method across each relevant historicreporting period where data is available toenable year-on-year comparisons.

02

Future updates and rebaselining

reduction is due to an increase in the numberof suppliers measuring and disclosing theiremissions, the impact from the improvementin the data and method should be disclosed.
See page 106 of the GHGP [GHGP-2] for
guidance on base-year recalculations for
improvements in data accuracy over time.
Appendix C of the GHGP [GHGP-2] also
provides a useful resource for developing
a data management plan and improving
data management.

01

Note: Detailed LCA as a method is notcompatible with reporting the impact of all
products on an annual basis but is rather tobe seen as a tool for creating an in-depth
understanding of the environmental impacts
of products. In this context, a simplified LCA
using, for example, a parameterised model
based on LCAs of a limited set of products
would also be relevant. The ITU has currently
defined a work item to develop guidance forsuch assessments. Meanwhile, the hardware
section of GeSI/Carbon Trust, ICT sector
guidance built on the GHGP product life
cycle accounting and reporting standard
22, provides initial guidance regarding asimplified LCA. Accordingly, the LCA-based
approach does not mean fulfilment of ITU-T
L.141023 for all individual products.

14

24

15

22
23

www.gesi.org/research/ict-sector-guidance-built-on-the-ghg-protocol-product-life-cycle-accounting-and-reporting-standard
ITU (2014), Recommendation ITU-T L.1410 (2014), Methodology for environmental life cycle assessments of information and communication
technology goods, networks and services.
ghgprotocol.org/sites/default/files/standards_supporting/Chapter1.pdf

Category 1 and 2

19

Figure 2 | Decision tree to determine the most appropriate calculation method

01
02

Screen suppliers

03

Yes

Yes

05

Can the telecommunication
operator obtain physicalactivity data and productlevel cradle-to-gateemissions inventory dataof sufficient quality?

04

Based on screening, does thepurchased product or capital
good contribute significantly
to the company’s Scope 3
emissions? For example,
the supplier is part of the
top 80% by spend.

Ye
s

06

No

No

07

No

09

N
o

08

Can the telecommunication
operator obtain physicalor economic activity data
and the supplier’s Scope 1,
2 and 3 (Category 1 to 8)
emissions data of sufficientquality?

Is the supplier relevant
to company’s goals?
For example, expected
to have significant
emissions or supply highemitting materials?

Yes

10

Use the supplierlevel method

Use the productlevel method

11

Use the industry
average method

12
13

Activity data sources

14

Category 1 and 2

15

Activity data used for allocating emissions
in the supplier-level allocation or industry
average methods can be either physicalor economic.

20

Table 2 | Activity data, benefits and challenges

Economic activity
data is the amountspent, by producttype or supplier,using market values(e.g. dollars).

• Purchasing
records, such as
from procurement
software (this is theamount spent)

Economic activity data
is a simple and effective
way of obtaining acomprehensive view ofactivity with suppliers aslong as people are awareof its challenges.

• Accounts payable
records

Challenges

09
10
11
12
13
14

It enables companies
to make more informed
decisions about theemissions efficiencyof their purchases
and processes.

The reliance on
multiple sources,
requires checks
to ensure thedata is reliable
and robust.

08

It is particularly useful
in monitoring andmanaging emissions
from suppliers, thatprovide a range of
products with different
emission profiles.

Obtaining thisdata is moreresource heavy.
In some cases, it
may require thegeneration of
new data, if therequired activity
data does notexist or cannot be
estimated fromexisting sources.

07• Bill of materials(this is a list of
raw materials,
components, orparts and thequantities ofeach that are
required by atelecommunication
operator to produce
a finished product)

Physical activity
data is considered as
being more aligned toemissions i.e. if physicalactivity is reduced,
then the associatedemissions with thisactivity will decrease.

06

Physical activity data • Purchasingis the mass (in kgs)
records, such as
or number of units
from procurement
purchased. This may
software (this isinclude the output of
the quantity ofa process, period offinished products
equipment operation
purchased)in hours or floor areaof a building.
• Enterprise resourceplanning systems

05

when prioritising datacollection efforts.

04

This methodties emissions toeconomic activity,
which does notalways provide
an accurate
representationof the emissions
from the products
It is cost- and timeand capital goods
efficient as the data isoften readily available in purchased by
a company’s purchasing the company.
That is, aor financial records.
reduction in
Note: Obtaining this data
economicgrouped by procurement
activity does not
Category may help whennecessarily mean
mapping to an emissions
a decrease indata source. Common
physical activity
types of procurement
and emissions.
Categories found include
telecommunication devices For example, acompany may
and network equipment.
purchase thesame product
It is particularly useful inscreening emissions sources at less cost.

03

Benefits

02

Example sources ofactivity data

01

Activity data

15

Category 1 and 2

21

Supplier-level data

A company’s ability to calculate emissions
depends on the availability and quality ofits data. Product and supplier emissions
data is more effective to track performance;
however, in some cases it may be less reliable
than industry average emissions data.
When determining which is the mostappropriate calculation method, companies
can use the following minimum indicators
as a guide to assess whether emissions
data is of sufficient quality.

Sources of supplier-level emissions data
may include:• reporting through the CDP’s global
disclosure system• information acquired through direct requests
the company has made to its suppliers

03

When using such sources, telecommunication
operators should consider the following
criteria as a guide to assess whether supplierlevel emissions data is of sufficient quality:04• calculated in accordance with the GHGP
[GHGP-1], [GHGP-2]

05

Sources of industry average emissions
data differ between economic andphysical activity, and may include thefollowing databases:• statutory reporting

02

Industry average level data

01

Emission data sources• complete for Scope 1 emissions

06

Economic activity:• complete for Scope 2 emissions (whereavailable, use market over location data)• The Sustainability Consortium• complete for applicable upstream Scope 3
emissions (at a minimum this should include
the supplier’s Category 1 and 2 emissions)• UK DEFRA

Inventories should be verified by anindependent third party to at least limited
assurance across all Scope areas in order toensure the reliability and quality of data.

• Accuvio, including the International
Energy Agency• Base Carbone

Product-level data
Sources of product-level emissions
data may include:

14

Note: These databases can be outdated.
Companies can use an inflation factor
adjusted for power purchasing parity tohelp better align their activity with suchdatabases, such as emissions value
multiplied by an inflation factor fromthe reference year to the reporting year.

• information from suppliers15• published carbon footprints• LCAs published for similar products

25Greenhouse gases – Part 1: Specification with guidance at the organisation level for quantification and reporting of greenhouse gas emissions and removals.

Category 1 and 2

12

When using such sources, companies
shall be guided by the following principles
to assess their appropriateness for Scope
3 reporting: relevance; completeness;consistency; accuracy; and transparency.

11• UK DEFRA

10

Physical activity:13• US Environmental Protection Agency

Note: Where available, market-based Scope
2 emissions from suppliers should be usedover location data. This approach differs fromthe GHGP [GHGP-1] and ISO 14064-1: 201825,
which requires companies to report Scope
2 emission using location and market data,also known as dual reporting. This guidancehas chosen to align with SBTi [SBTi] to allow
telecommunication operators to monitor anddrive improvements in the sourcing of lowcarbon electricity in their supply chain. For thisreason, it is important that telecommunication
operators describe their approach when theyreport these emissions, as well as any changes
over time and their impact on emissions.

09• Exiobase08• Carnegie Mellon University

07• Quantis

22

04

Purchased products
and capital goods emissions (tCO2e) =05

Emissions data (e.g. kgCO2e per kg or
piece, subscription or dollar)x
Activity data (e.g. kgs or number of pieces,
subscriptions or dollars)
÷ 1,000

06

Table 3 | Summary of activity data and emissions data

Emission data

Activity data

Product level

Product-level EF for each purchased
product or capital good (e.g. kgCO2e/
kg or kgCO2e/piece or kgCO2e
subscription).

Physical activity data:
Quantities or units of productsof capital goods purchased(e.g. in kg or number ofpieces or subscription).

Supplier level (physicalactivity)

Supplier’s Scope 1, 2 and 3 (Category
1 to 8) emissions data per quantities
or units of products of capital goods
purchased (e.g. kgCO2e/kg orkgCO2e/
piece).

Physical activity data:
Quantities or units of productsof capital goods purchased(e.g. in kg or number of pieces).

Supplier level (economic
activity data)
See note

Supplier’s Scope 1, 2 and 3 (Category
1 to 8) emissions data per unit ofeconomic value (e.g. kgCO2e/$ ofrevenue).

Economic activity data:
Amount spent on products
or capital goods purchasedusing market values(e.g. in US dollars).

07

Method10
11

Industry average(economic activity data)

Environmentally extended inputoutput (EEIO) EF for each type ofpurchased product or capital good
per unit of economic value (e.g.
kgCO2e/$).

Economic activity data:
Amount spent on products orcapital goods purchased, by
product type, using market
values (e.g. in US dollars.)

14
15

27

13

Physical activity data:
Quantities or units of products
or capital goods purchased(e.g. in kg or number of pieces).

GeSI, Carbon Trust (2022). ICT sector guidance built on the GHG Protocol product life cycle accounting and reporting standard. Brussels:
GeSI. www.gesi.org/research/ict-sector-guidance-built-on-the-ghg-protocol-product-life-cycle-accounting-and-reporting-standard
ITU (2014), Recommendation ITU-T L.1410 (2014), Methodology for environmental life cycle assessments of information and communication
technology goods, networks and services.

Category 1 and 2

12

Representative EF for each type ofpurchased product or capital good(e.g. kgCO2e/kg or kgCO2e/piece).

26

09

Industry average (physicalactivity)

Note: See Appendix 1 forfurther detail on applying
the supplier level economic
activity data method.

08

Tip Supplier revenue for the reporting
year must be normalised to thetelecommunication operator’s currency.
This currency convention should align withthe company’s financial reporting system.

03

The following calculation formula is usedin the industry. Table 3 lists the methods bylevel of data activity and emissions datain order of how specific and detailed thecalculation is to the purchased product orcapital good and ends with the most generaland simplistic. Refer to the GHGP [GHGP-1]
for further formulas.

02

Note: This approach is not yet applied
widely, and its delivery method is understudy. At the time of publication, there isno comprehensive framework for productlevel estimates based on simplified LCA.
The GeSI ICT sector guidance26 explainsapproaches for simplified LCA, such asparameterised models. Telecommunication
operators may also refer to ITU-T L.141027 for
guidance on boundary setting, transparencyof assumptions and the overall framing of
estimates. However, fulfilling the details ofa full LCA study is not expected and notseen as possible in a reporting context.

Calculation

01

When using such sources, companies
shall be guided by the following basic LCA
principles, to assess their appropriatenessfor Scope 3 reporting: relevance,completeness, consistency, accuracy,transparency and conservativeness.

23

01
02
03

Category 3

04

Fuel and Energy
Related Activities

05
06
07
08
09
10
11
12
13
14
15

01
02

Description

03

c| transmission and distribution losses(generation of electricity, steam, heating,as well as cooling that is consumed (i.e.
lost) in a transmission and distribution
system) reported by end user

04

This Category consists, as specified
in the GHGP [GHGP-2], of extraction,
production and transportation of fuels
and energy purchased or acquired by
the telecommunication operators in thereporting year, not already accounted
for in Scope 1 or Scope 2, including:a| u pstream emissions of purchased
fuels (extraction, production andtransportation of fuels consumed)07

For electricity sold to end users, itemisation
and recording of emissions associatedwith these sales are recommended in
Scope 3, Category 3 reporting.

06

b| u
 pstream emissions of purchased
electricity (extraction, production
and transportation of fuels consumed
in the generation of electricity, steam,heating and cooling consumed)

05

d| g
 eneration of purchased electricity
that is sold to end users (generationof electricity, steam, heating andcooling that is purchased and soldto end users) – reported by utility
company or energy retailer only08
11

Note: Emissions due to the constructionof facilities and machinery used for the
extraction and production of fuel andenergy are not referred to in the GHGP and
therefore are not expected to be included.

12

The fuel- and energy-related emissions(i.e. supply chain, transport and distribution

losses) of other Scope 3 Categories areaccounted for within those Categories,
following the same calculation approachas in this chapter.

10

This Category includes all upstream
emissions from the extraction, production
and transportation of fuels consumed, also
known as cradle-to-gate emissions related
to Scope 1 and 2 energy and fuel usage.
Emissions related to fuel combustion areaccounted for in Scopes 1 and 2.

09

Category boundaries

13
14
15

Category 3

25

01
02

Applicability totelecom operators

03
04

In the telecommunications industry, thisCategory is significant due to the large
amounts of electricity used to operate
the network.

05

Calculation method

Note: The supply chain EF for fuels covers
extraction, production and transportation.

The EFs are different when applying amarket-based and a location-based
approach to calculating emissions.

12

Category 3

26

15

For general guidance, please refer to the EFs
chapter in the General Guidance chapter.

14

When market-based assessments are
performed, companies should take into
account the upstream life-cycle impact of the
production of the additional renewable energy,
as well as the upstream life-cycle impacts ofany grid electricity used. When location-based
assessments are performed, the total upstream
life-cycle impact of the grid electricity
consumed shall be taken into account.

13

Electricity-related emissions =Electricity used (kWh)xSupply chain EF for electricity generation(kgCO2e/kWh)+Electricity used (kWh)xTransport and distribution losses EF(kgCO2e/kWh)11

EFs sources

Note: The supply chain EF for fossil fuels
is typically referred to as that from Well-to-Tank.

For electricity consumption

10

Fuel-related emissions =Fuel used (t, l or m3)x
Supply chain EF for that fuel (kgCO2e/t, l or m3)

District heat- and steam-related emissions =energy used in (GWh)xSupply chain EF+
District heat- and steam-related emissions =Energy used in (GWh)x
Transportation and distribution losses EF

09

For fuel08	For district heat and steam07

The following formulae are used:

Note: The supply chain EF for electricity covers
extraction, production and transportation of fuelsconsumed in the generation of electricity, steam,heating and cooling.

06

To calculate the emissions in this Category,
activity data (consumption of fuel, electricity,
district heat or steam) is multiplied by anappropriate EF. The activity data for thefuel and electricity consumption shouldbe the exact amounts used to calculate
Scope 1 and 2 emissions.

01
02
03
05
06

UpstreamTransport andDistribution

04

Category 4

07
08
09
10
11
12
13
14
15

01
02

Description

05
06

Calculating emissions from this Category
based on primary data is complex anddepends on the availability of data, processes
and IT systems in place. Sometimes thoselimitations are so significant that reporting
companies may choose to calculate
emissions from this Category with a lessaccurate method or use certain proxies.

04

This Category excludes emissions fromoperations of vehicles owned or operated
by the telecommunication operator thatare already accounted for in Scope 1. In
summary, it includes all transport anddistribution services that the company pays
for, either directly or indirectly, associatedwith the goods procured or sold. Emissions
associated with the transport and distributionof purchased goods that are paid for by
the supplying company have already beenaccounted for in Category 1 and must not
be double counted in Category 4.

03

This Category includes all transportand distribution paid by the reportingorganisation, regardless of whether theactual transport and distribution occurs
upstream, between the organisation’s sites,or downstream, according to the guidancein the GHGP [GHGP-1].

07
08

Category boundaries

12
13

According to GHGP [GHGP-1], emissions
from distribution, such as warehousing,shall also be considered under Category
4. If the storage facility is owned by thetelecommunication operator, emissions
from heat and electricity shall be reported
as Scopes 1 and 2 and shall not be included
here. GHG emissions calculation options
range from either high level (average-data
method) or detailed (site-specific).

11

Note: The emissions associated withtransport via both internal combustion
engines and electric vehicles shall betaken into account.

GHGP [GHGP-2] states that reporting
the unladen backhaul of transportation(i.e. the return journey of an empty
vehicle) is optional. However, its inclusion
is recommended in the inventory forthis Category.

10

Optionally, it can include emissions
associated with manufacturing thosevehicles, logistics facilities or infrastructure.

09

This Category includes the emissions related
to the use of fuel or electricity by vehicles oftransport and distribution providers assignedby the telecommunication operator (cars,
vans, trucks, trains, ships, etc.) as well as
emissions resulting from the supply chainof this fuel or electricity (e.g. well to tank)
and applicable distribution losses.

14
15

Category 4

28

01
04

Telecommunication companies do not
typically see significant emissions identified
from upstream distribution, such as
warehousing; therefore, it is not customarily
prioritised to gather site-specific data.

03

It is recommended to assess thisCategory as it is generally relevant for
telecommunication operators, however
this Category is not usually among themost carbon-intensive ones.

02

Applicability totelecom operators

05
06

Calculation method
Of the approaches listed in Table 4,
information in the spend-based methodcolumn is considered to have the lowest
accuracy, followed by that headed
distance-based, with fuel-based being
the most accurate. Combinations of thethree are possible, and detailed accounting
practices that outline which approach isused in which situation are recommended.

08
09

As outlined in the following example, it may
be impractical or impossible to collect datafrom each transportation partner or supplier.
In such cases, a decision shall be made on
which activity data to collect and, based onthat, an appropriate method selected.

07

Calculating emissions fromtransportation

10

Table 4 | Methods for accounting for transport-related emissions

Spend-based

Distance-based

Fuel- orelectricity-based

Activity data
type

Amount spent ontransportation by
type, in monetary
valuesMass or volume of goods
transported by modeof transport, actual or
estimated distances,
online maps or calculators

Fuel/electricity
consumed, fuel/electricity type

Activity
Invoices, internal
data source
financial systems
GHGP [GHGP-2]
and method
recommendation

Estimates (internal/fromthe carrier or operator)
GLEC framework28

Actual data fromcarrier or operator
GLEC framework29

13

EF

kgCO2e/t-km

kgCO2e/l
kgCO2e/kWh

14
15

29

12

28

kgCO2e/$,kgCO2e/€Smart Freight Center (2022), What is the GLEC Framework? - How to implement items | Smart Freight Centre – How to implement items,
www.smartfreightcentre.org/en/how-to-implement-items/what-is-glec-framework/58/
Smart Freight Center (2022), What is the GLEC Framework? - How to implement items | Smart Freight Centre - How to implement items,
www.smartfreightcentre.org/en/how-to-implement-items/what-is-glec-framework/58/

Category 4

11

Method type29

Distance-based

Fuel- orelectricity-based

EF source

EEIO databases
GHGP [GHGP-3]

GLEC database30,
DEFRA database

GLEC databases31

Formula∑ (amount spenton transportation
by type [$;€])
x relevant EEIO
EFs per unit ofeconomic value[kgCO2e/$; €])∑ (mass of goods
purchased (mass orvolume) x distance travelledin transport leg (km) x
EF of transport mode or
vehicle type (kgCO2e/t
or volume/km)

Amount of fuelor electricity
used x emissions
factor for fuel orelectricity

02

Spend-based01

Method type03
04

∑ (total distance travelled [e.g. km]
×
fuel or electricity efficiency of vehicle[e.g. l/km])

or


07

∑ (total fuel spend [$;€]/
average fuel price [$/l;€/l])

08

or


10

Transport and distribution emissions =(PV Products x x%+
PV Services x y%)*xEF logistics per currency unit

∑ fuel consumed (l)×(mass or volume of company’s goods
÷mass or volume of goods transported)

09





06

Formula:As a less accurate variation of the fuel- or
electricity-based method involves estimating
fuel use based on vehicle efficiency:

The recommended calculation,
including activity data and method

Where:

Y% is the estimated percentage of freightcosts in the value of purchased services

14

EF is the EF for logistic services in CO2e
per currency unit
30

32
33

Smart Freight Center (2022), What is the GLEC Framework? - How to implement items | Smart Freight Centre - How to implement items,
www.smartfreightcentre.org/en/how-to-implement-items/what-is-glec-framework/58/
Smart Freight Center (2022), What is the GLEC Framework? - How to implement items | Smart Freight Centre - How to implement items,
www.smartfreightcentre.org/en/how-to-implement-items/what-is-glec-framework/58/
Smart Freight Center (2022), What is the GLEC Framework? - How to implement items | Smart Freight Centre - How to implement items,
www.smartfreightcentre.org/en/how-to-implement-items/what-is-glec-framework/58/
Network for Transport Measures to be introduced.

Category 4

15

31

13

X% is the estimated percentage of freightcosts in the value of purchased products

12

PV Services is the purchase volume forservices in units of currency

As outlined in Table 4, several internal andexternal factors are required for reporting.
A significant step towards understanding
emissions from this Category comes from
deploying the distance-based method basedon the GLEC framework32, the Network forTransport Measures33 or [b-EN 16258] andtheir corresponding EFs. Setting up thismethod is highly recommended as it comesfrom a reputable source and contains themost relevant EFs. See Tables 5 and 6.

11

PV Products is the purchase volume for
products in units of currency

05

A variation of the spend-based approach
could also include GHG emissions that are
estimated based on the purchase priceand a typical share of freight costs for
products (e.g. 5%) and for services (e.g.
1.0% or 1.5%). These costs are deducted
before calculating the emissions forpurchased goods and services or capital
goods. Expenses calculated in this way
for upstream logistics are multiplied by
an appropriate EF per unit of currency
for logistics. For example, this factor canbe generated based on the answers fromlogistic suppliers to the CDP Supply Chain
Programme or from EF databases.

30

Table 5 | A n overview of the activity data required for setting up calculation according

to the distance-based method

Comments

Weight info

List of materials andvolumes

The telecommunication
operator

If possible, thesupplier

Weight per material

Supplier

Packaging (primary,secondary andtertiary)

Supplier

Container

Supplier

Distances per route

Supplier or distancecalculator

Uplift factor

GLEC

Transport mode

Supplier

Transport type

Supplier

CO2e EF

GLEC34, DEFRA

04

Route info

03

Source02

Activity data

01

Category05

To account forthe differences
betweentransportation
emissionson different
continents

06
07
08

Table 6 | Final calculations of upstream transport emissions

Activity data

Weightcalculation

Total device weight = volume of devices x
weight of a device

09

Category

Comments

10

Total packaging weight = primary +secondary + tertiary packaging

11

Separate packaging
calculations if needed(material per box, theweight of boxes, etc.)

Total weight = total device weight +total packaging weight

Total weight includes
container weight in caseof truck transport

kg CO2e (per transport) = km x CO2e EFCO2e EF needs to include‘uplift factor’ depending
on continent

Total kg CO2e = sum of kg CO2etransported

Final result

14

t-km (per transport) = distance x total
weight13

Only applicable fortruck transport

12

Route
calculation

Total weight incl. container = total weight+ container weight

15

34

Smart Freight Center (2022), What is the GLEC Framework? - How to implement items | Smart Freight Centre - How to implement items,
www.smartfreightcentre.org/en/how-to-implement-items/what-is-glec-framework/58/

Category 4

31

Calculation example
The transport route consists of three separate
legs. The shipment is housed in a 40-foot(12.192-metre) container. See Tables 7 and 8.

02

Table 7 | Calculation example – Part 1

Weight x
distance,

03

Calculation Distance x
weight

04

Route

01

Company A is about to receive a shipmentof 2,750,000 handset units from the
manufacturer. Each handset weighs 0.131kg.

Distance,km

Transport Transport
type
specification

Total
Weight, t
distance

Input

Input

Input

Input

Start to port A

50

Road

Rigid truck50
26-32t grossvehicle weight
(GVW)

606

30,300Port A to port B 600

Sea

Generalcargo 10-20kt
deadweight

600

510

306,000

Port B to end

Road

Rigid truck
26-32t GVW

325

606

196,950

t-km

05
06

325

07

Table 8 | Calculation example – Part 2CO2e emissions, kg

Input

Assumption
from GLECGLEC emissions database

Calculation

Start to port A

22%

0.087 + 22% uplift = 0.106

30,300 x 0.106 = 3,212

Port A to port B

0.016

306,000 x 0.016 = 4,896

Port B to end

0.087

196,950 x 0.087 = 17,135
Total emissions 25,243

2,750,000 x 0.131 = 360,250kg = 360t

510t

Total including container =

606t

14

Subtotal =13

Packaging: weight of packaging(in total) =150t• If including upstream emissions in Category
4, Category 1 to 2 calculation shall exclude
these upstream transport emissions to
avoid double counting.

12

Pieces: amount (volume) x weight per unit
(kg/unit)

Links to other Scope 3 Categories
and instructions

11

Weight calculation

10

CO2 EF, kg CO2e/t-km

09

Uplift08

Route

Category 4

15

The total emission from the transportationof this shipment is calculated at 25,243t CO2e.

32

01
02
03

Category 5

04

Waste Generated
in Operations

05
06
07
08
09
10
11
12
13
14
15

01
02

Description

04

Only waste treatment in facilities owned
or operated by third parties is includedin Scope 3, Category 5. Waste treatment
taking place at facilities owned or controlled
by the telecommunication operator isaccounted for in Scope 1 and 2.

03

This Category includes emissions fromthird-party disposal and treatment ofwaste that is generated in the operations
owned or controlled by a company.
This Category includes emissions fromthe disposal of both solid and liquid waste.

05
07

As telecommunication operators do
not manufacture their own products,
this Category generally accounts for asmall proportion of emissions. Therefore,
this Category and associated method
description do not have any specificities
for telecommunication operators.
Hence application of the general method
detailed in GHGP, Life Cycle Databases35.

08
09
10

Note: Regarding emissions associatedwith energy or materials recovery, pleasealso refer to the GHGP [GHGP-3].

11

The emissions from waste fortelecommunication operators typicallyaccount for a minor part of Scope 3
emissions; however, they must be
addressed. It is acknowledged thatwaste generation and waste treatment
practices are closely correlated and are
an important indicator of a company’s
circularity endeavours and of its contribution
to other environmental impacts.
Wastewater is typically considered
non-material, as the amounts of direct
water used by telecommunication operators
are low, as are discharges to water.

06

Applicability totelecom operators

12
13
14
15

35

ghgprotocol.org/life-cycle-databases

Category 5

34

01
02

Category boundaries

M1 Supplier-specific method – this method isrelevant when the waste treatment company
is able to directly provide its own Scope 1 and2 emissions data.

• Real estate waste (e.g. offices, data
centres, technical sites, shops)• Marketing and campaign materials

Waste treatment activities may include:• Recovery for recycling• Composting

12
13

A telecommunication operator’s Scope 3
emissions from waste generated inoperations derive from Scope 1 and 2
emissions of waste managed by waste
management companies.

11• Waste-to-energy or energy-from-waste –i.e. combustion of municipal solid waste to
generate electricity

10• Incineration

Many waste operators charge for waste
disposal by the method used, so disposal
methods may be identified from their invoices.
The choice of calculation method will
likely depend on the country in which theoperations are carried out. When countries
have strict legislation on waste tracking, it
can be easier for companies to track theirwaste than in those countries that do not.
Similarly, some countries prohibit landfilling,so care should be taken not to include
emissions from landfilling when using the
average-data method for these countries.

09• Landfill disposal08

M3 Average data method – this method isrelevant when no detailed information onwaste is available, other than total waste.
Splitting the waste by different disposal
methods is based on estimation, andaverage EFs are further applied.

• Special handling waste (e.g. lightbulbs,
fire extinguishers, etc.)07• Network installation and repair (e.g.
gravel, asphalt, sludge, poles, back-up
batteries, cables, metal)

06

M2 Waste-type-specific method – thismethod is relevant when no supplier-specificdata is available. It calculates waste emissions
based on the classification of waste types,
which are further divided into different
treatment methods. In this method, specificEFs based on waste type and treatment
activity are applied.

• E-waste (e.g. network equipment,
employee equipment)

05

Typical sources of waste fortelecommunication operators include:

04

Companies may use any one of the following
methods to calculate emissions from waste
generated in their operations, but managed
by third parties:

03

Different types of waste generate different
types and quantities of GHGs. Similarly,
different waste treatment activities resultin different amounts of emissions.

14

According to GHGP [GHGP-2], it is optional
to include transportation of waste and, if
it is included, Category 4 guidance should
be followed.

15

Category 5

35

01
02

Calculation method
The following are relevant for M3:

The following is relevant for M1:

1| Total mass in tonnes of waste generated

1| Company-specific data on waste collectedfrom the waste-treatment companies.
Data includes Scope 1 and Scope 2
emissions allocated to the waste collectedfrom the telecommunication operator

2| Proportion of waste treated by different
methods (landfill, incineration, recycling)

The following is relevant for M2:

Best practice in reporting waste includes
detailed reporting on waste sent to landfills
and incineration (where possible relevant
for all Methods). Certifications such as"zero waste to landfill" and "zero waste
to incineration" are encouraged.

06
07

FormulaExamples of calculations and somespecificities are available in GHGP
[GHGP-2].

08

3| Waste type-specific and waste treatmentspecific EFs

3| Average waste treatment-specific EFs
based on all waste disposal types40

05

2| Treatment method applied per waste type.
Options include re-use36, open-loop37,
closed-loop38, combustion, composting,landfill or anaerobic digestion39

04

1| Total mass in tonnes of waste generated
per waste type (e.g. insulation, paper, waste
electrical, electronic equipment)

03

Inputs• End-of-life of sold equipment, particularly
e-waste, shall be reported in Category 12

09

Links to other Scope 3 Categories
and instructions

10
11
12
13
14

Information on materials re-used, as opposed to disposed of by recycling or landfill.
Open-loop recycling is defined as a process of recycling material, whereby new products are created.
Closed-loop recycling is defined as a process of recycling material where the original purpose of the product is retained.
Includes energy recovery.
EF databases that support waste management and reporting include, but are not limited to, DEFRA, as shown in their 2022 conversion factors;
full set available at www.gov.uk/government/collections/government-conversion-factors-for-company-reporting and ADEME

Category 5

15

36
37
38
39
40

36

01

02

03

05

Business Travel

04

Category 6

06

07

08

09

10

11

12

13

14

15

01
02

Description
Emissions from travel in vehicles owned
or controlled by the telecommunication
operator are accounted for in Scope 1(for fuel use) or Scope 2 (for electricityuse). Corresponding supply chain andtransmission and distribution losses areaccounted for in Scope 3, Category 3.

04
05

Emissions from business travel may arise
from travel by air, rail, bus and car (e.g.
business travel in rental cars, employeeowned vehicles) other than employees

commuting to and from work that are
accounted for in Category 7.

03This Category includes emissions fromthe transportation of employees forbusiness-related activities in vehicles
owned or operated by third parties, suchas aircraft, trains, buses and passenger cars.

06
08
10

Nevertheless, telecommunication operators
report emissions for this Category and takemeasures to encourage sustainable travel
options and audio or video conferencing
for business-related activities.

09

Many telecommunication operatorsthat have performed extensive Scope 3
screening have noted that emissions
from business travel typically account fora minor part of total Scope 3 emissions.

07

Applicability totelecom operators

11
12

Category boundaries

13

Emissions from business travel by
employees during the reporting year invehicles not owned or operated by thetelecommunication operator are included.
Companies may optionally include emissions
from business travellers staying in hotels.

14
15

Category 6

38

01
11
12

EF, specific by country and by modeof transport (tCO2e/vehicle-km or
tCO2e/passenger-km)

10These data are sourced from the travel
agencies with which the telecommunication
operator works. Where possible, distancedata should disclose details, such as thecountry of travel (since transportation
EFs vary by country) and the specific
type of vehicles used for travel (e.g. theEF of a high-speed train is different to one
that is a regional or a light rail).
Note: The GHGP [GHGP-2] does not demand
the inclusion of the fuel supply chain forthis Category, in contrast to Category 4.

13

If data is available on the amount of fuelconsumed during business travel by typeor mode of transport, companies may
apply the fuel-based method. The
calculation method for the fuel-based
method is the same as that in Category
4, with the difference that the source foractivity data are the travel providers or
travel agencies. For a description of thismethod, see Category 4.

14 Distance travelled by mode of transport(vehicle-km/year) or (passenger-km/year)

09

Fuel-based method

08

These methods are described in further
detail in Category 4.

Activity data and EFs follow

07

It is best practice to use either the fuelor distance-based method for calculating
business travel emissions when possible.
The fuel-based method is preferred if
business travel contributes significantly to
Scope 3 emissions (based on screening)or if engagement with travel providers isrelevant to the business goals.

Business travel emissions =Σ (total distance travelled by mode of transport[vehicle-km or passenger-km]
×vehicle-specific EF [tCO2e/vehicle-km
or tCO2e/passenger-km])

06

3| Spend-based method, which involves
determining the amount of money
spent on each mode of business traveltransport and applying secondary(EEIO) EFs

Emissions are calculated by multiplying the
distance travelled in each type or modeof transport by an EF for the mode used,generally expressed in passenger-km.

05

2| Distance-based method, which involves
determining the distance and modeof business trips, then applying theappropriate EF for the mode used

The distance-based method is preferred
if business travel does not significantly
contribute to Scope 3 emissions (basedon screening) or if engagement with travel
providers is not relevant to business goals.

04

1| F
 uel-based method, which involves
determining the amount of fuelconsumed during business travel(i.e. Scope 1 and Scope 2 emissionsof transport providers) and applying
the appropriate EF for that fuelDistance-based method

03

Companies may use one of the following
methods, in descending accuracy:

02

Calculation method

Category 6

15

Business travel emissions =fuel used (t, l or m3)
×Combustion EF for that fuel (kgCO2e/t, l or m3)

39• This Category covers rental vehicles.
Emissions from leased vehicles that are
not included in Scope 1 or 2 are accounted
for in Scope 3, Category 8.

04• EFs for different modes of transportation
used for distance-based method are thesame EFs used for calculating emissions
associated with Category 7.

06
07• Emissions from transportation of employees
to and from work are accounted for in
Scope 3, Category 7.

05

If it is not possible to use either the fuel- or
distance-based methods, companies may use
the spend-based method.

03

Spend-based method

Links to other Scope 3 Categories
and instructions

02

Specifically for air travel, if the company hasenough data, it can differentiate between
long-haul, short-haul or domestic flights
and consider the class (economy, premium,business, first), since the relevant EF differs
considerably. If the class is unknown, thecompany can use the ‘average passenger’ EF42.

The calculation method is the same as the
spend-based method described in Category
4, with the difference that the activity data is
the amount spent on business travel by typeor mode of transport (instead of the amountspent on transportation by type or mode oftransport). For a description of this method,
see Category 4.

01

Consequently, the impact of travellingis underestimated compared to that oftransport. The GHGP [GHGP-2] further
states that companies may adopt multipliers
or other corrections to account for emissions
due to radiative forcing41 (e.g. air trails)
arising from aircraft transport. This guidance
recommends telecommunication operators
consider supply chain and radiative forcing tofollow best practice. In any case, companies
should disclose the specific factors used andwhat they entail.

08
09
10
11
12
13
14

41

Category 6

40

15

42

According to DEFRA (UK), emissions from aviation have both direct (CO2 , CH4 and N2O) and indirect (non-CO2 emissions e.g. water vapour,contrails, NOx) climate change effects. Organisations should include the indirect effects of non-CO2 emissions when reporting air travel emissions
to capture the full climate impact of their travel. However, it should be noted that there is significant scientific uncertainty around the magnitude of
the indirect effect of non-CO2 aviation emissions and it is an active area of research.
EF databases include but are not limited to the EPA’s GHG Emission Factors Hub (United States Environmental Protection Agency) or the UK
government's conversion factors for company reporting of GHG emissions.

01

02

03

05

Commuting04

Category 7

06

07

08

09

10

11

12

13

14

15

01
02

Description

Companies can use information from
employee surveys or use proxy data toestimate travel distances.

06•C ar travel (by own or shared vehicle).

Companies may also include emissions
from teleworking, and it is recommended
that telecommunication operators do so(see Calculation Method in this chapter for
further details).

05

Emissions from employee commuting mayarise from the following:• Other modes of transportation(e.g. metro, taxi, e-bike).

04

Emissions related to remote work belongs tothis Category. Reporting these emissions is
recommended as it helps to create data setsfor evaluating ICT’s effects of remote work;
however, it is classified as voluntary by the
GHGP [GHGP-2].

• Boat travel.

03

According to GHGP [GHGP-2], this Category
includes emissions due to travel of employees
from their homes to their workplaces.

•R ail travel.

07

EFs for vehicles and public transportation
are widely available, typically expressed in
tCO2e/passenger-km travelled.

•B us travel.

08
09
12

Nevertheless, telecommunication operators
report emissions for this Category andtake measures to encourage sustainablecommuting options and audio or videoconferencing for business-related activities.

11

Many telecommunication operators that
performed extensive Scope 3 screening
analysis report that emissions from
employee commuting typically account fora minor part of total Scope 3 emissions.

10

Applicability totelecom operators

13
14
15

Category 7

42

01

Note: Depending on the contractual
situation, commuting of consultants etc.
may be accounted for in Category 1,
in which case it does not need to be
included here.

04
05

According to GHGP [GHGP-2], companies
may also include emissions fromteleworking, and it is recommended thattelecommunication operators do so.

06"Employees" are staff members of entities
and facilities owned, operated or leased by
the telecommunication operators. They may
include employees of other relevant entities(e.g. franchises, outsourced operations)in this Category, as well as consultants,
contractors and other individuals, who

are not employees of the company but
commute to facilities owned and operated
by the telecommunication operator.

03

The minimum boundaries include all
emissions associated with the transportationof employees to and from their places of
employment using vehicles not owned
or controlled by the telecommunication
operator.

02

Category boundaries

07
08

Calculation method

09

Travel-related

If company specific data is unavailable,companies may use average secondary
activity data to estimate distance travelled
and mode of transport. A company may
collect average secondary data fromsources, such as national transportation
departments, ministries or agencies,
national statistics publications or industry
associations.

14
15

Category 7

13• Average-data method, which involves
estimating emissions from employee
commuting based on average (e.g.
national) data on commuting patterns.

Where data is available on distancetravelled by employees, the distancebased method is used in preference
to the average-data method.

12• Distance-based method, which involves
collecting data from employees oncommuting patterns (e.g. distancetravelled and mode used for commuting)and applying appropriate EFs for themodes used.

If data is available on the quantity or amountspent on fuel by employees for commuting,companies may apply the fuel-based method.
The calculation method for the fuel-based
method is the same as in Category 4.

11• Fuel-based method, which involves
determining the amount of fuel consumed
during commuting and applying theappropriate EF for that fuel.

Fuel-based method

10Referring to employee surveys, proxy dataand other ways of collecting information
regarding travel patterns of employees,
companies may use one of the following
methods to estimate emissions:43Distance-based method

kg CO2e from employee commuting =Σ (total distance travelled by vehicle type[vehicle-km or passenger-km]
×vehicle-specific EF [kg CO2e/vehicle-km or
kg CO2e/passenger-km])

05
06

Average-data method

07

In order to estimate distance travelled andmode of transport, companies may collectsecondary data to determine:08• Average daily commuting distances oftypical employees.
• Average modes of transport of typicalemployees.

09• Average number of commuting days
per week and average number of weeks
worked per year.

10

Such estimation requires making several
simplifying assumptions, which add
uncertainty to the emissions estimates.
Employee commuting emissions =

12



11

CO2e emissions from employee travel
are obtained by first summing across all
employees to determine total distancetravelled using each vehicle type.

T hen, sum across vehicle types todetermine total emissions:04

Once the company has determined total
annual distance travelled by each modeof transport, apply EFs for each modeof transport (usually expressed in unitsof GHG [CO2, CH4, N2O] emitted per
passenger-km travelled), according to
the following formula.

03

While doing so, companies should try to
get the best possible representativenessof employees taking into considerationdifferences in local travel patterns,
potentially using statistical methods, suchas confidence intervals, to understand thequality of their data. Companies usually
extrapolate from a representative sampleof employees to represent the total
commuting patterns of all employees.
For telecommunication operators doing
business in more than one country, it isbest practice to extrapolate the sampleof employees by country to the rest of
employees of this country. Mobility patterns
vary a lot depending on the country.
In European countries, employees are
more likely to use public transport,
whereas in Latin America or the Middle
East, commuting by car is frequent.

02

Total distance travelled by vehicle type(vehicle-km or passenger-km) =Σ (daily one-way distance between home
and work [km]×
2
×number of commuting days per year)•T otal distance travelled by employees
over the reporting period (e.g. passengerkilometres).
•M ode of transport used for commuting(e.g. train, metro, bus, car, bicycle).

01

Companies should collect data on employee
commuting habits (preferably annually),e.g. through a survey or use of proxy data,
to determine:

Employee commuting emissions arecalculated by summing across eachtransport mode =

15

44

14

Category 713 Σ (total number of employees X% of employees
using mode of transport×
one way commuting distance [vehicle-km or
passenger-km]
×
2
×
number of commuting days per year×
EF of transport mode [kg CO2e/vehicle-km or
kg CO2e/passenger-km])

Further reading

For additional energy usage in the home,
calculate the corresponding contributions
to Category 7 by:

06

Further reading
Further guidance on calculating emissions
related to remote work is available frominitiatives, such as:07• EcoAct, info.eco-act.com/
en/homeworking-emissionswhitepaper-2020

08• Carbon Trust/Vodafone, www.vodafoneinstitut.de/wp-content/uploads/2021/06/
CT_Homeworking-report-June-2021.pdf

10Links to other Scope 3 Categories
and instructions09• Average speed of transport provided by
the Mobility in Cities Database, available atwww.uitp.org/publications/mobility-incities-database/Σ number of workdays from home×
quantity of additional energy consumed
per remote working day (kWh)×
EF for energy source (kg CO2e/kWh)05• Private transport data from ‘Japan Guide’,based on surveys on commuting times inseveral countries worldwide, available atwww.japan-guide.com/topic/0011.html

Additional home energy use emissions =04

• Public transport data from the European
Commission on Transport breaks down the
EU and international percentage averages
for bus, rail, tram and metro use, available
at ec.europa.eu/clima/eu-action/transportemissions_en• The calculation method for the fuel-based
method is the same as that in Category 4.

12• EFs for different modes of transport used
for the distance-based method are thesame as those used in Category 6.

11• The approach of two UK-based banks
to calculating homeworking emissions
outlined in the EcoAct Homeworking
Emissions Whitepaper, available atinfo.eco-act.com/en/homeworkingemissions-whitepaper-2020

Remote work-related emissions

03• For UK organisations, the Department
for Transport provides guidance and acalculation tool for work-related travel,available at www.gov.uk/government/
publications/environmental-reportingguidelines-including-mandatorygreenhouse-gas-emissions-reportingguidance02• U.S. EPA Climate Leaders GHG Inventory
Protocol, ‘Optional Emissions from
Commuting, Business Travel and ProductTransport’, available at nepis.epa.gov

EFs for different modes of transportation
can be collected via publicly available
data from global and local transportation
emission databases, transport companies,
local ministries or agencies43.

01• GHG Protocol Calculation Tool, GHG
Emissions from Transport or Mobile
Sources, developed by World Resources
Institute, available at www.ghgprotocol.
org/calculation-tools/all-tools

13
14

Some examples from telecommunication operators include: Quantis suite tool, Ecoinvent database EFs, DEFRA Guidelines, UK Government GHG
Emission Conversion Factors for Company Reporting, VTT Lipasto and Finnish Railway in Finland, Ministry of the Environment and the National
Urban Person Trip Survey from the Ministry of Land, Infrastructure, Transport and Tourism in Japan, Ministry of Environment’s Low Carbon Green
Event Guidelines in Korea, National GHG Accounts Factors in Australia.

Category 7

45

15

43

01
02
03

Category 8

04

Upstream
Leased Assets

05
06
07
08
09
10
11
12
13
14
15

01
02

Description
When an asset is leased, the GHGP [GHGP2] requires any emissions associated with
operating the asset to be accounted forby one of the parties under Category 8
or 13 (see later). The GHGP [GHGP-2] goeson to say that the reporting of life-cycle
emissions associated with the manufacture
or construction of the asset is optional.

Operators of ICT infrastructure can on
occasion be lessors (leasing assets tocustomers, including other ICT operators)
and at other times lessees (leasing assets
from other organisations, again including
other ICT operators).

In the case of the lessor, thetelecommunication operator will havepurchased the asset and will therefore
have already included the embodied
emissions in its Category 1 or 2 emissions.
In the case of the lessee, it is left to thediscretion of the telecommunication operator
to determine whether it chooses to further
its accountability by reporting on theembodied emissions. The remainder of thischapter only covers operating emissions.

05

Note: If a company moves from an assetleasing model to an ownership model, andunder the leasing model it had elected not
to report life-cycle emissions, then it will
see an increase in overall emissions. Thisis because under the ownership model itwill need to report the upstream lifecycle
emissions under Scope 3, Categories 1 and 2.

08

04
06
07
09
10

Before assigning any emissions to Categories
8 or 13, first ensure that these are thecorrect Categories for consideration. Thisis especially important when distinguishing
between the purchase of a service and theleasing of an asset. From the customer’s
point of view, if it is the former (i.e. thepurchasing of a service) then refer to theCategory 1 chapter, if the latter, then continue
with this chapter. Drawing this distinction isoften easier when dealing with physical as
opposed to virtual assets. The wording ofcontracts may clarify such matters.

03

The GHGP [GHGP-2] uses the terminology‘lessee’ and ‘lessor’. A company that rents
an asset owned by someone else (e.g. asa mobile operator leasing space in a cell
tower) is called a ‘lessee’. A company thatlets an asset to someone else (e.g. as a
Towerco leasing space to a mobile operator)
is called a "lessor".

11
12
13
14
15

Category 8

47

01
04
05
06

Whenever an organisation accounts for anemission under Scope 3 it is important that
this emission be also reported by anotherorganisation as either Scope 1 or 2. For
most Scope 3 Categories, this matter
is often clear, and the allocation occurs
automatically. However, in the case of
Categories 8 and 13 this allocation is often
not straightforward and may, on occasion,
either not occur at all, or may lead to adouble counting of Scope 1 or 2 emissions.
Such a situation can arise because thetwo reporting organisations simply maketheir own, but conflicting, interpretationsof the GHGP [GHGP-2], or because the
GHGP [GHGP-2] itself leads to this situation.
The latter contradiction is covered in moredetail later.

03

Scope 3, Category 8 accounts for emissions
associated with upstream leased assets(i.e. when the telecommunication operator
rents assets from a third party). Category
13 accounts for emissions associated withdownstream leased assets (i.e. assets that are
let to a third party by the telecommunication
operator). The guidance for Category 13 isoften the flip side of that for Category 8
and for this reason the two Categories
are combined.

02

Category boundaries

07
08
09
10
11
12
13
14
15

Category 8

48

01
02

Applicability totelecom operators

03
04

Within the ICT industry, there are multiple
examples of lessee and lessor relationships.
Table 9 provides a few examples.
Table 9 | Examples of lessee and lessor relationships

05

Network operator
as lessee

Network operator
as lessor

Rented office space.

Network operator
rents office spacefrom a third party.

Network operator
lets office space toa lessee.

A towerco owns and manages a set of‘passive’ towers, which it leases to one
or more operators who install ‘active’
telecommunication equipment,
powered by electricity to processdata and voice flows.

Network operator
rents cell towercapability froma lessor.

Network operator
lets cell towercapability to lessee.

Colocation data centre in which a businesscan rent space for servers and othercomputing hardware.

Network operator
rents space in a
Colocation data
centre from another
ICT company.

Network operator
runs a Colocation
data centre and lets
space to a lessee.

Local Loop Unbundling in which acompeting operator can place its own
equipment in an incumbent’s telephoneexchange (central office).

Network operator
rents space in
an incumbent’s
telephone exchanges.

Incumbent operator
lets space in its
telephone exchanges
to its competitors.

07
08
09
11

ICT company acts as
an ESCO.

10

An Energy Services Company (ESCO)An ICT company
providing power supply services, equipment leases equipment
or associated maintenance services.
or capacity fromthe ESCO.

06

Example12

leasing arrangement. It also seeks to resolve
contradictions and anomalies that arise outof the GHGP [GHGP-2].

13

In all cases, there are two guiding principles:1 One of the leasing entities must adopt the
Scope 1 and 2 emissions associated with thejoint leasing arrangement.

14

2 All carbon accounting arrangements areto be included in the lease contract.

15

The remainder of this chapter does not seek
to make recommendations aligned to anyof the specific use cases detailed in Table
9, but rather it provides generic guidance
that is applicable irrespective of the usecase. The guidance is based on the GHGP
[GHGP-2] and takes account of different
control approaches and types of lease.
Where alternative options exist within theconstruct of the GHGP[GHGP-2], it is left tothe company to decide which direction totake in agreement with the other party to theCategory 8

49

01
09
10
11

• An option to purchase the asset at a
discounted price at the end of the term.

•O perational control

08•F inancial control• A transfer of ownership of the asset atthe end of the term.

07•E quity share

Capital leases are counted as debt. They
depreciate over time and incur interest
expense. For example, to be classified
as a capital lease under U.S. Generally
Accepted Accounting Principles (GAAP)44,
any one of four conditions must be met:

06

The first step is to identify which of thefollowing consolidation approaches in the
GHGP [GHGP-1] a company uses to set its
organisational boundaries:

A capital or finance lease is treated like anasset on a company’s balance sheet, while an
operating lease is an expense that remains off
the balance sheet. Think of a capital lease as
more like owning a piece of property and an
operating lease as more like renting it.

05

The GHGP Scope 3 guidance proposes
different ways of achieving this allocation
depending on which consolidation approach
the telecommunication operator has selected
to set its organisational boundaries and thetype of lease.

Operating lease: A type of lease that enables
the lessee to operate an asset, like a building
or vehicle, but does not give the lessee anyof the risks or rewards of owning the asset.
Any lease that is not a finance or capital leaseis an operating lease.

04

Before considering how to address either
Scope 3, Category 8 or 13 emissions, it isimportant first to ensure a correct attribution
between Scopes 1 and 2, and Scope 3. For
example, where one business is supplying
space to a third party, this often comes withthe provision of power, heat or cooling. The
question of attribution then becomes oneof allocating the Scope 1 and 2 emissions
associated with these services to either theprovider of the space or the user of the space,
while recognising that Scope 1 and 2 emissions
should only be reported by one entity.

and gives the lessee all the risks and rewardsof owning the asset. Assets leased undera capital or finance lease are considered
wholly owned assets in financial accounting
terms and are recorded as such on thebalance sheet.

03

Attributing emissions between Scopes 1
and 2, and Scope 3

02

Calculation method• The term of the lease is greater than orequal to 75% of the useful life of the asset.

44 www.fasb.org
45 www.ifrs.org

Category 8

50

15

Finance or capital lease: A type of leasethat enables the lessee to operate an asset•T he assets under the lease are specialised
so that only the lessee can utilise themwithout major changes being made to
the assets.

14

GHGP [GHGP-1] distinguishes between
two types of lease; "finance or capital" and"operating". These are defined as follows.

Alternatively, if evaluated under International
Financial Reporting Standards (IFRS)45, there
is one more criterion that can be used toqualify a lease as a capital lease:13

The second step is to determine the typeof lease.

• The present value of the lease payments isgreater than or equal to 90% of the asset’s
fair market value.

12

Note: Setting a preferred approach tothe corporate GHG-reporting boundarylies outside the Scope of this guidance.
For more information on this matter, seechapter 3 of the GHG Protocol [GHGP-1].

01
02

For each case of a leased asset, it isrecommended that the team responsible
for compiling the company’s GHG inventory
contact their finance department to establish
whether the asset is included on thecompany’s balance sheet. This will establish
the type of lease involved according toTable 10.

03

Operating leases are used for the shortterm leasing of assets and are similar torenting as they do not involve any transferof ownership. Periodic lease payments
are treated as operating expenses andappear as debit on the income statement,
impacting both operating and net income.
In contrast, capital leases are used to lease
longer-term assets and give the lessee
ownership rights.
Table 10 | Type of lease

04

Classification on balance sheet

Role of telecommunication operator
LessorIncluded

Capital lease

Operating lease

ExcludedOperating lease

Capital lease

05

Lessee06

GHGP Guidance on Scope allocation to Lessees

07

Table 11 explains how emissions from leased assets are categorised.
Table 11 | E missions from leased assets: Leasing agreement and boundaries

08(lessee’s perspective)

Type of leasing arrangement
Lessee does not have ownershipor financial control, therefore
emissions associated with fuelcombustion are Scope 3 andwith use of purchased electricity
are Scope 3.

Operational control
approach used

Lessee does have operational
control, therefore emissions
associated with fuel combustion
are Scope 1 and with use ofpurchased electricity are Scope 2.

Lessee does have operational
control, therefore emissions
associated with fuel combustion
are Scope 1 and with use ofpurchased electricity are Scope
2 (see note).

51

15

Category 8

14

Source: Appendix F of GHG Protocol, Corporate Value Chain (Scope 3) Accounting and Reporting Standard

13

Note: Some companies may beable to demonstrate that they
do not have operational control
over a leased asset held underan operating lease. In thiscase, the company may reportemissions from the leased asset
as Scope 3 but must state clearly
in its GHG inventory report
the reason(s) that operational
control is not perceived.

12

Lessee does have ownershipand financial control, therefore
emissions associated with fuelcombustion are Scope 1 and withuse of purchased electricity are
Scope 2.

11

Equity share or
financial control
approach used10

Operating lease09

Finance/capital lease

11
12
13

Once the allocation of emissions between
the lessee and lessor for Scopes 1 and 2
versus Scope 3 has been resolved, thenthe actual emissions can be evaluated.

10

Note: Companies leasing building space whilereferring to ITU-T L.142046 need to include
the associated Scope 1 and 2 emissions
within their Scope 1 and 2 accounts under
Measurement or assessment of emissions.

09

Note: If the lessor (e.g. a Towerco) and thelessee (e.g. a telecommunication operator)
belong to the same company group and areeach reporting separately, then either thelessor or the lessee must elect to accountfor Scopes 1 and 2 and the other party
reports as Scope 3. If just the group isreporting, then all operational emissions
shall be counted as Scopes 1 and 2.

08

The default position of the GHGP is thata lessee operating under the Operational
Control approach should count emissions
associated with fuel used for heat, cooling or
power generation, and electricity suppliedin their Scopes 1 and 2 respectively, with thelessor counting them as Scope 3, Category
13. However, the GHGP then goes on to say
this need not be followed if operational
control is not perceived by the lessee.

To avoid any such confusion, this guidance
recommends that Scope 1, 2 and 3 allocations
be covered in lease contract clauses under'Contractual clauses'.

07

On-site heat generation equipment, suchas a basement boiler, typically falls under
the operational control of the landlord orbuilding management company. Tenants
therefore would report consumption ofheat generated on-site as Scope 2. If atenant can demonstrate that they do not
exercise operational control in their lease,
they shall document and justify theexclusion of these emissions.

06

The word ‘acquired’ was added in
the Scope 3 Standard (p28) to reflect
circumstances where a company may notdirectly purchase electricity (e.g. a tenant ina building), but where the energy is brought
into the organisation’s facility for use.

There is a scenario under an Operating
Lease where, according to the GHGP,
neither entity in the leasing arrangement
declares an emission as Scope 1 or 2.
This occurs when the lessor works to
the Operational Control approach, but
considers the lessee to have operational
control, and the lessee works to the
Financial Control approach, but does
not have financial control. In a similar
fashion there is another scenario where
both entities in a leasing arrangement
declare the same emission as Scope 1 or 2.

05

Therefore, if a company is a tenant in aleased space or using a leased asset andapplies the operational control approach,any energy purchased or acquired fromanother entity (or the grid) shall be reported
in Scope 2.

Points of confusion

04

In some leased building arrangements,
tenants do not pay for electricity individually.
However, this should not exempt tenantsfrom reporting the emissions from thatenergy use. Scope 2 includes energy thatis acquired and consumed.

03

All leases confer operational control to thelessee or tenants, unless otherwise noted.

02

The GHGP Scope 2 standard adds further
guidance as follows:

In principle, the position of the lessor shouldbe the inverse of the lessee. For example, if
the lessee considers the emission should beallocated to Scope 3 then the lessor shouldbe allocating them to either Scope 1 or
Scope 2 or both.

01

GHGP Guidance on Scope allocation
to lessors

Where using the Operational Control
Approach, the note to Table 11 allows thecompany to reverse the guidance in
certain circumstances.

14
15

46

Recommendation ITU-T L.1420 (2012), Methodology for energy consumption and greenhouse gas emissions impact assessment of information andcommunication technologies in organisations.

Category 8

52

04
05
06

Draft contract clauses addressing theserecommendations are available from the
Chancery Lane Project48.

07

Transparency
Whenever emissions are reported as Scope
3, Category 8 or 13, it is recommended
that the reporting entity be transparent as
to the method used to reach this positionand explain any contractual arrangements
covered by the agreement.

08
09

Note: This does not require disclosure ofactual contractual clauses. Wording of thecontract can be kept confidential.

10“To clarify ownership (rights) and
responsibility (obligations) issues, companies
involved in joint operations may draw up
contracts that specify how the ownershipof emissions or the responsibility for
managing emissions and associated risk
is distributed between the parties. Where
such arrangements exist, companies may
optionally provide a description of the

03

The GHGP [GHGP-1] provides for the
possibility of using contractual clauses toassign ambiguous ownerships of emissions.

In addition to the contract outlining theallocation of emissions, it should also statethat the entities deemed to ‘own’ any Scope
1 or 2 allocations agree to inform the otherparty of the emissions measured so they
can report it under their Scope 3 footprint.

02

Contractual clauses

contractual arrangement and include
information on allocation of CO2e-relatedrisks and obligations.” (page 20)
To avoid any doubt, it is recommended thatany lease set out the assignment of all relevant
emissions between Scopes 1, 2 and 3 for bothlessee and lessor. This should be done in sucha way as to avoid any exclusion of emissions
from Scopes 1 and 2, as well as the avoidanceof any double counting in Scopes 1 and 2.
It is further recommended that even where
the GHGP seems to offer no such confusion,
it would still be best practice to outline all
relevant emission attributions within a lease.

01

The entity best placed to do this is theone deemed to ‘own’ the Scope 1 and 2
emissions. That organisation should
evaluate the emissions according tostandard GHGP principles and theninform the corresponding Scope 3
entity of the emissions it should report.
There may be cases where some emissions
covered by a single leasing arrangement
are dealt with differently to others. For
example, where a lessee rents space within
the lessor’s premises to install and run theirown equipment and receives sub-metred
electricity, then this may be agreed between
the parties (preferably within the contract)
to transfer operational control, and thereby
the Scope 2 allocation, from the lessor to
the lessee. At the same time, the electricity
used to run support services provided
by the lessor, such as cooling or antennasharing may be deemed to remain under
the operational control of the lessor whothen retains the Scope 2 allocation47.

11
12
13
14
15

47
48

For data centres, the PUE metric may be useful in allocating energy use to either the physical plant or the IT infrastructure.
chancerylaneproject.org/climate-clauses/allocating-scope-1-2-and-3-emissions-for-leased-assets/

Category 853

4| EITHER:

8| R
 eporting entities should be transparent
as to the method used to evaluate
reported emissions and explain all
arrangements covered by contractual
agreement.

09

c| If option a) or b) leads to either a nonallocation of emissions to Scopes 1 and 2,
or a double allocation of such emissions
then, by contractual agreement, ensure

7| The entity taking any Scope 1 and Scope
2 allocation shall evaluate the emissions
according to standard GHGP principles
and then inform the corresponding Scope
3 entity of the emissions it should report.
Details of this agreement should also be
included in the lease.

08b| Allocate all Scope 1 and 2 emissions
associated within the contract between
the lessor and the lessee according tocontractual agreement.

b| T he lessor reports emissions as Scope
3, Category 13 and the lessee reports
emissions as Scopes 1 or Scope 2.

07

OR;

OR;

06

a| Allocate all Scope 1 and 2 emissions
associated within the contract between
the lessor and the lessee according to
the GHGP guidance.

a| T he lessor reports emissions as Scope 1 or
Scope 2 and the lessee reports emissions
as Scope 3, Category 8.

05

3| Establish the type of lease (i.e. capital(finance) or operating), subsequent steps
are as follows:

6| EITHER:04

2| Establish which reporting boundary
approach each company has selected.

03

For each ownership model and by agreement
between the lessee and lessor:

5| W hichever approach is taken under
entry #4, the details should be calledout in a specific language within thelease specifying how GHG emissions
are allocated between the leaseparticipants such that:021| Identify all material ownership or use
models within a company’s leasingarrangements i.e. who owns what, who
supports what, who operates what, whois the beneficiary of use.

that all relevant emissions receive a
Scope 1 and 2 allocation to one of thecontracting parties.

01

Summary of Scopes 1 and 2, andScope 3 decision steps

10
11
12
13
14
15

Category 8

54

01
02
03
05
06

Downstream
Transport andDistribution

04

Category 9

07
08
09
10
11
12
13
14
15

01
02

Description

03

This Category includes transport anddistribution of products sold by thetelecommunication operator to theend customer (if not paid for by thetelecommunication operator), including
retail and storage (in vehicles andfacilities not owned or controlled by
the telecommunication operator).

04
05
06

According to the GHGP [GHGP-2],
companies may include emissions from
customers travelling to and from retail stores,
which can be significant for companies
that own or operate retail facilities. It is
recommended that telecommunication
operators include such emissions based on
customer surveys or proxy data, considering
number of customers and average meansof transport and shop distances.

07
08

Links to other Scope 3
Categories and instructions

09

In line with other Scope 3 emissions frompurchased services, downstream transportand distribution would be reported as
Category 1 if specific data cannot be
acquired. The typical situation is thattransportation services can be specified andreported separately. Normally, this would
mean that downstream transportation would
be reported in this Category. However, inpractice telecommunication operators may
not distinguish between upstream anddownstream transports in their records but
keep all kinds of transport services accounted
for as one post. For this reason, thetelecommunication operator’s transportationand distribution are typically accounted forjointly under Categories 4 and 9 and reported
as Category 4 upstream transportations (asan element of purchased services that canbe accounted for separately).

10
11
12
13
14
15

Category 9

56

01
02
03

Category 10

04

Processing of
Sold Products

05
06
07

This Category includes the further processing ofintermediate products (e.g. material, component)
sold to downstream companies and is normally notconsidered relevant to telecommunication operators.

08
09
10
11
12
13
14
15

01
02
03

Category 11

04

Use of Sold
Products

05
06
07
08
09
10
11
12
13
14
15

01
02

Description
customer. Indirect emissions resulting fromgoods and services sold may also be included.
However, this is not mandatory.

04
05

Calculating emissions from Category 11
typically requires data on product energy
use and representative product use profiles
reflecting how customers are expected touse the products. The accuracy of productenergy models, user profiles and associatedemissions can be improved through thecollection of field data.

03

As stated in the GHGP [GHGP-2], thisCategory includes emissions from the useof goods (tangible products) and services(intangible products) sold by thetelecommunication operator in the reportingyear. Companies are required to include directuse-phase emissions of sold products overtheir expected lifetime,49 which are the Scope
1 and 2 emissions of end users associated withthe energy consumption of sold products
during their entire use, such as the electricity
consumption of a set-top-box used by a

06
07
08
09
10
11
12
13
14

GHG Protocol, Corporate Value Chain (Scope 3) Accounting and Reporting Standard, puts the emissions associated with the entire lifetime at theyear of sales. ISO 14064-1 2018 (Greenhouse gases — Part 1: Specification with guidance at the organisation level for quantification and reportingof greenhouse gas emissions and removals) however allows for depreciation. For telecommunication operators it is recommended to follow GHG
Protocol, Corporate Value Chain (Scope 3) Accounting and Reporting Standard.

Category 11

59

15

49

01
10
11

Note: Regarding enterprise customers,
if the service sold by operators includes
cooling and power supply, this should betaken into account when assessing theCategory 11 emissions.

09• Business solutions provided to customer.
This could include operation ofequipment, such as computers, data
centre products, including servers, storage
systems, networking equipment, andsystems combining the above elements.
Other energy consuming equipment soldto customers, such as IoT/machine-tomachine (M2M) devices, TV sets ormonitors, shall also be considered.

08• Devices used to view media content
provided by the operator (TV and
set-top box).

• Customer Premises Equipment (CPE),
such as routers, decoders, optical
network terminals and Wi-Fi-boosters
installed in customers’ houses.

07• Televisions (TVs) used with set-top boxes
provided by the telecommunication
operator.

• Mobile devices, such as smartphones,
laptops, tablets, smartwatches and audio
devices that are sold to the customers.

06• Device electricity consumption of all users
sold a mobile subscription regardless ofwhether they were sold a mobile device
from the telecommunication operator.

The following devices are often sold bytelecommunication operators and areaccounted for in this Category:

05

Examples of indirect emissions include:

Emissions arising from sold services are
more complex to assess, and for this reason
this Guidance focuses solely on products.

04

Indirect emissions resulting from soldgoods and services sold may also be
included, although this is not mandatory,
telecommunication operators are encouraged
to report them. The telecommunication
operator shall decide where it makes sense
to report indirect emissions, taking into
account how significant they are, howwell they can estimate them and how
much influence they have to mitigate
them. If indirect emissions are included
in Category 11, the telecommunication
operator shall make clear in the accounting
practices which indirect emissions areincluded, and how they are calculated.

• Internet of Things (IoT) devices provided
by other suppliers.

03

The direct use-phase emissions of soldproducts over their expected lifetime(i.e. the emissions of end users that occur
from the use of products that directly
consume electricity).

02

Category boundaries

12
13
14
15

Category 11

60

01
04

Therefore, it is important to measure or assess
and report these emissions appropriately
and to take measures aimed at encouraging
both a sustainable design of the products
and a responsible purchasing and use of theequipment and devices by customers.

03

Emissions derived from the use of
products sold are considered material
for telecommunication operators andare often within the top three highest
emission Categories of Scope 3.

02

Applicability totelecom operators

05
06
07

Calculation method

08

Companies may use one of the approaches
listed in Table 12:
Table 12 | Calculation method for Category 12

09

1

Multiplying the number of sold productsby the total lifetime energy use associatedwith each model, corresponding to arepresentative energy profile, lifetimeand EF representing global conditions.

Particularly suited to goods
that have a relatively small
proportion of emissions
during their use phasecompared to their entire life
cycle, and for which productcarbon footprint (PCF), LCA
or eco-rating data is available.

2

Multiplying the number of sold productsby the annual energy use associatedwith each model in each country, theequipment lifetime and the country’s
EF for electricity.

For all other goods.

12

Application

11

Method10

Approach13
14
15

Category 11

61

Calculating emissions by Approach 2

Emissions from use of other sold products =04∑ Energy consumption (kWh/year)
×
lifetime (years)
×EF (tCO2e/kWh)Emissions from use of mobile devices =05∑ lifetime use-stage emissions (tCO2e)
×
number of devices

Activity data and EFs follow:

14
15

62

13

Category 11

12

Based on information provided by manufacturers, Eco Rating initiative assesses each device comprehensively and assigns an overall Eco Ratingscore out of a maximum of 100 to indicate the environmental performance of the device over its entire lifecycle. Regarding climate, it displays the
GHG emissions of the device over its entire life cycle.

11

Special attention should be paid to which
grid EF was used to calculate the use phasethroughout the life cycle and its applicability
to the country from where the devices
draw electricity.

»E quipment use profile for different
power modes (full power, low power andstandby), per device and country (hours
per year): primary or field data is preferred,
such as in-house data on how devices arebeing used on average by a significantly
large population, however secondary data
sources can also be used to supplement,
for example public sector or nongovernmental organisations reports
on hours of TV watched per day forthe average household or averagetime spent on a mobile device.

10

The source of these emissions may be
publicly available in PCF or LCA studies
that are disclosed by manufacturers fortheir specific models, or that are provided
by the suppliers to the Eco Rating50 initiative.
For models without PCF, LCA or Eco Rating
data, the use-stage emissions can be
estimated based on average emissions of thesame type of device from different brands.

09• Product emissions of the lifetime use stage,
per model and supplier (tCO2e).

» Energy characteristics of the equipment:
energy consumption (in kWh) in different
power modes (full power, low power andstandby) for routers, decoders and Wi-Fi
boosters, per device and country together
with a use profile. It is best practice to use
data that follows a standardised testing
protocol or supplier information data ofeach specific model. If data for a specificdevice or model is not available, the energy
consumption can be estimated based on the
average consumption of similar devices withprimary data or on the applicable versionof European Code of Conduct on energy
consumption of broadband equipment.

08

Telecommunication operators can consider
either the number of mobile devices sold tocustomers, or the number of mobile devices
purchased by the company that are aimed tobe sold to customers, since these figures do
not significantly vary in a reporting year andthe latter may be easier to obtain and track.

• Annual energy consumption of the device(kWh/year): this is calculated based on
the following:07• Number of devices: number of products,
per type of device, model, supplier andcountry.

• Number of devices: number of piecesof equipment installed in or shipped tocustomers per type of device, modeland country.

06

Activity data and EFs follow:

50



03



It is best practice to use this approach forcomputer equipment, servers, data centres,routers, decoders and Wi-Fi boosters.
Telecommunication operators can also use
this approach for mobile devices, instead ofApproach 1.

02

It is best practice to use this approach for
products, such as mobile devices, since
their use stage does not represent asignificant share of emissions comparedto their overall life-cycle emissions. As there
is some publicly available data providing
the specific emissions of the use stage forsome models (e.g. PCF, LCA or Eco Ratingdata), this can be used to make an estimateof the lifetime use-stage emissions.

01

Calculating emissions fromApproach 1• Devices whose use-phase emissions
are captured in Category 11 can, undercertain circumstances, have a negative
impact on Category 1. Specifically, theduration of the first use of refurbishedmaterials has a significant impact on
the carbon assessment result. The useof reused, refurbished and repaired
goods with a short first use can evenhave negative carbon consequences,as it contributes upstream to increase
the speed of their replacement by newmaterial. Thus, extending first use should
be considered in assessing carbon of theuse of reused, refurbished and repaired
goods materials52.

06
07
08
09
13
14

63

15

EF databases include, but are not limited to, IEA since there are some national carbon footprint registers that may require their country-specific EFs
for electricity. Currently there is no way to apply a market-based accounting method for Category 11, since it is not possible to know what type ofelectricity each consumer uses. Therefore location-based factors shall be used.
librairie.ademe.fr/dechets-economie-circulaire/5241-evaluation-de-l-impact-environnemental-d-un-ensemble-de-produits-reconditionnes.html

Category 11

12• The number of devices accounted for in
Category 11 shall match the number ofdevices accounted for in Category 12 if
there is uncertainty in the exact numberof devices that reach end-of-life in agiven year.

11• As some CPE may be leased instead ofsold (e.g. routers, set-top boxes), somecompanies report these emissions in
Category 13. However, the calculation
methodology presented here in Category
11 is better suited for such products
and shall be applied. In the accounting
practices, the telecommunication operator
shall make clear what is leased, what issold and what calculation methodology
is used.

1052• Product life cycle emissions from LCAs,
PCFs or similar can be used for bothCategories 1 and 2 (cradle-to-gateemission) and Category 11 (use stage).

05

51

Links to other Scope 3
Categories and instructions

04

Grid EFs should follow the General Guidance
chapter. In addition, EFs for electricity
consumption of products sold should bespecified by country51. It is recommended
to use the most recent, most representative
grid EF at the time that the device is sold.
Otherwise, projected changes in the grid
EF (according to recognised sources,
such as the IEA, government report or03

If field data of the exact number of devices
that are connected at any given moment isavailable and the total power consumption
for all devices is a known quantity, then thisnumber can be used and multiplied by the
lifetime of the devices.

The telecommunication operator shouldreport information on average use profiles,
assumed product lifetimes and other
underlying assumptions in their accounting
principles.

02

Note: Each sale of a product should
consider the expected lifetime for that sale.
For this reason, the first sale of a productneed not consider subsequent operatingtime associated with reuse, while the saleof reused products need not consider the
lifetime associated with the original sale.
Moreover, the lifetime of an original saleof a product and for a refurbished productof the same kind may differ.

the grid provider) can also be used. It is
recommended that the approach usedshould be clearly indicated in theaccounting practices.

01•E
 quipment lifetime (year): this is estimatedlifetime of the equipment, per type ofdevice and model. Ideally, this should
be done by using the best estimate ofoperational lifetime, which should bebased on available information on actual
goods use (e.g. statistics for similar goods,
networks and services or commercial
information) and should model real life as
closely as possible. Telecommunication
operators shall strive to collect primarydata on energy consumption and user
profiles. In the absence of primary or field
data, secondary data should be sought,
such as actual user profiles including
household surveys. If information on actualuse of goods, networks and services cannot
be found, economic statistics may be used
to estimate the operating lifetime, such as
depreciation time. However, such estimates
are considered to be less accurate andshould be avoided. In practice, it is often
difficult to put a value on the lifetime ofa product, but the telecommunication
operator should strive to derive the best
possible estimate.

01
02
03
05
06

End-of-Life
Treatment of
Sold Products

04

Category 12

07
08
09
10
11
12
13
14
15

01
02

Description
The treatment of end-of-life methods
includes landfill, incineration and recycling,
and therefore there can be a reporting
crossover with respect of Category 5
emissions.

03
05

Inclusion of end-of-life treatment of soldgoods is particularly challenging with regards
to lacking access to accurate data, need forassumptions about end-of-life preferences ofcustomers, low accuracy of supplier EFs andlimited availability of country-specific data.

04

The GHG Protocol determines that thisCategory includes “emissions from waste
disposal and treatment of products soldby the telecommunication operator (inthe reporting year) at the end of their life”.
From an accountability perspective thisCategory is important, but data challenges
make it hard to address, especially since
the share of products coming back totelecommunication operators may belimited while official waste statistics may
not be available.

06
07

This would include emissions other than
Scope 1 and 2 associated with takeback services for disposal provided by
the telecommunication operator unlessaccounted for in Categories 1 and 2.

09
10

For applicable devices sold by thetelecommunication operators, see
Category 11.

11Category 12 includes emissions from thewaste disposal and treatment of products
sold by the telecommunication operator (inthe reporting year) at the end of their lives.
This Category includes the total expected
end-of-life emissions from all products soldin the reporting year. This means that
operators need to make an assumption
about the development of waste handling(e.g. take it to be the same as that current),of distribution of waste treatments andof share of take-back for a future setting
decided by the operating lifetime.

08

Category boundaries

12
13
14
15

Category 12

65

01
03

For equipment that is taken back by thetelecommunication operator, the assumed
waste treatment should be in line withactual treatment. For the remining share,
the average waste handling situationof the country could be considered toprovide the most likely assumption onwaste treatment. If country-specific data
is not available, regional or global averages
may be used.

04
05
06

For a telecommunication company,
reporting on this Category will often be
constrained by the data availability, as wellas an assumption being made in respectof customer behaviour. Typically, products
are separated into Categories, such as retailor business-to-business and then a further
breakdown is applied in terms of what the
product type is (mobile handset, headsetetc.), an assumption is made in respect of
average weight of a specific product type
and the assumed waste treatment, together
with the end-of-life emissions factor.

02

Applicability totelecom operators

07
08

Calculation method
Additionally, the emissions associatedwith the take-back disposal service arecalculated as:

Emissions from take-back and disposalof devices =Σ (total weight of devices scrapped [t]×share of waste fraction per unit weight×
EF per treatment method)

12

Based on this method, the total emissions per
CO2e are calculated53.

13

End-of-life treatment might be different in
the future as technology for waste recovery
may evolve, however current approaches to
end-of-life treatment shall be assumed.

14

Total weight of devices shall be basedon Category 11. EFs per waste treatment
methods should follow Category 5.

Emissions from end-of-life treatmentof sold products =11Σ (total weight of devices sold [t]×share of waste fraction per unit weight×
EF per treatment method)

10



09

The emissions of this Category could be
calculated as follows:

1553

Sources of EFs include DEFRA, ADEME etc.; see General Guidance chapter.

Category 12

66

01
02
03

Category 13

04

Downstream
Leased Assets

05
06
07
08
09
10
11
12
13
14
15

01
02

Description

03

This category includes emissions fromthe operation of assets that are owned bytelecommunication companies (acting as
lessor) and leased to other entities.

04
05
06

Applicability totelecom operators

07

This Category is handled in line with
Catergory 8; please see Category 8 chapter.

08
09

Calculation method10

Downstream leased asset emissions =13
14

Note: the number of active installed CPEs
in customer premises can be considered for
instance on 31 December of the considered
year or as the average number over theconsidered year.

12∑ Number of active installed CPEs in theconsidered year for the considered CPE model×
Energy consumption per unit in the considered
year for the considered CPE model [kWh]×
EF for the considered country [tCO2e /kWh]

11

As CPE (e.g. routers, set-top boxes) is often
leased to customers instead of sold, sometelecommunication operators choose toreport those emissions in Category 13 as
opposed to Category 11. However, as themethodologies presented in Category 11
are well suited to these types of devices,
if a telecommunication operator chooses
to report emission from leased assets
in Category 13, it can still apply themethodologies presented in Category 11of this Guidance or it can use, year afteryear, data related to the active installed
CPEs in customer premises. In that case,the emissions shall be calculated as follows,
aggregating the following sums for each
CPE model and country:

15

Applicability to telecom operators

68

01

02

03

05

Franchises

04

Category 14

06

07

08

09

10

11

12

13

14

15

01
02

Description
1| L icensed operation of another operator’s
network - this is also known as a Branded
Partner Market and refers to licensed use of
the brand of another operator in the same
region to operate a network.

04

2| Franchised retail stores.

05

The life-cycle emissions associated with
manufacturing or constructing franchises are
considered optional by the GHGP [GHGP-2]

Relevant operations of telecommunication
operators under this Category follow:

03

This Category includes emissions from atelecommunication operator’s operationof franchises not included in Scope 1 or 2.
A franchise is a business operating under alicence to sell or distribute another company’s
goods or services within a certain location.

06
07

Applicability totelecom operators

08
09

This is typically not a significant emission
Category for telecommunication operators.

10•N umber of stores or floor area of stores.

14•T ypical electricity consumption per store
and floor area.
•E stimated EF based on country electricity
factor.

Category 14

7015• Number of items or customers.

2| E missions for Retail Franchises are calculated
based on the number of retail stores or thefloor area of the stores (m2). Data needed:

13

1| Emissions for licenced operation of anotheroperator’s network (Branded PartnerMarkets) is calculated on a per item factor(i.e. per base station), where number of
items is known, otherwise it is calculated
on a per customer basis. Data needed:• EFs that can be calculated using a pro-rata
apportionment of own operations as input.

12

The best option is always to use reported
Scope 1 and 2 emission data from theoperation of franchises, but if such data
is not available:

11

Calculation method

01

02

03

Category 15

04

Investments

05

06

07

08

09

10

11

12

13

14

15

01
02

Description

1| Joint Ventures (JVs), if not captured under
Scope 1 and 2 or Scope 3 (Category 8).

05This Category includes Scope 3 emissions
associated with the telecommunication
operator’s investments in the reporting
year, not already included in Scope 1 or
Scope 2. Companies using the equity shareconsolidation approach55 include theirshare of Scope 1 and 2 emissions from

Relevant operations under this Category
include equity share emissions related to:04

their equity investments in this Category.
This contrasts with companies that apply theoperational or financial control consolidation
approach, which accounts for all emissionsof their investments in their Scope 1, 2 andapplicable Scope 3 Categories.

03

This Category is applicable to investors (i.e.
companies that make an investment with theobjective of making a profit) and companies
that provide financial services54. Category 15
is designed primarily for financial institutions
but is also relevant to other entities withinvestments not included in Scope 1 andScope 2. As such it may also apply toinvestments by telecommunication operators.

06

2| Tower companies, if not captured under
Scope 1, 2 or 3 (Category 8).

07

3| Minority shareholdings

08

telecom operators to investigate to take
into account remaining Scope 3 Category
15 emissions.

10
12

Moreover, when investee companies are notin the telecommunication sector, separate
Scope 1 to 3 accounting is recommended
for these investee companies, by sector of
activity of investment.

11

The GHGP[GHGP-2] states that when
Scope 3 emissions are significant
compared to other sources of emissions,investors should also account for the Scope
3 emissions of the investee company.
This guidance recommends that Scope
3 emissions of the investee companies
should always be screened. It also aligns
with the GHGP [GHGP-2] and encourages

09

Category boundaries

13
14

55

Investments are categorised as a downstream Scope 3 Category by GHG Protocol, Corporate Value Chain (Scope 3) Accounting and ReportingStandard, because the provision of capital or financing is seen as a service provided by the telecommunication operator.
See chapters 3 and 4 of the GHG Protocol, Corporate Value Chain (Scope 3) Accounting and Reporting Standard – ghgprotocol.org/sites/default/
files/standards/Corporate-Value-Chain-Accounting-Reporting-Standard_041613_2.pdf.

Category 15

72

15

54

01
02

Applicability totelecom operators

0304

Depending on the business modeland subsequent consolidation
approach according to [b-GHGP 2],
this Category can be a significant
contributor to a telecommunication
operator’s Scope 3 inventory.

05
06• Minor shareholdings emissions can be
estimated based on the sector-estimatedEF, which considers the location of theoperations and the share ownership
percentage.

11
13

The telecommunication operator should
strive to exert influence as much as possible
on companies that report their emissions
in their Scope 3: Category 15 to publish
transparent data related to their Scope
1, 2 and 3 emissions.

12• For a Towerco JV, the proportional
allocation of Scope 3 emissions basedon its own operations is not considered
suitable due to the different natureof operations and the potential for

10• A proportion of the emissions is allocatedto the telecommunication operator basedon apportionment using the equity share.

09• Emissions for JVs are calculated as
the Scope 1 and 2 emissions (either
as reported or if not reported thenestimated), plus an estimate of the JVs
Scope 3 emissions (based on the pro rata
ratio of the reporting companies own
Scope 3 or Scope 1 and 2 emissions).

significant overestimation. Towercos
include only the building and maintenanceof network towers. To estimate Scope 3
emissions, publicly available data or primarydata should be used from the Towerco’s
annual reporting and used to estimate theemissions associated with Categories 1,
2 and 3 that were identified as the mostmaterial areas of the footprint.

08

The most accurate approach is to use
reported primary emission data from theoperations. However, if this is not available,
the following alternatives shall be applied:

07

Calculation method

14
15

Category 15

73

Reporting
This chapter describes how an organisation
should prepare the GHG report to inform
external and internal parties. In accordancewith ITU-T L.142056, the organisation shallconsider the following when planning andpreparing its energy and GHG report:• Purpose and objectives of the report.
• Intended use and users of the report.
• Overall and specific responsibilities for
preparing the report.
• Frequency of the report.
• Period for which the report is valid.
• Report format.
• Data and information to be included in
the report.
• Policy on availability and methods fordissemination of the report.

Reporting on Scope 3 emissions must
contain:• Description of the reporting organisation.
• Reporting period covered, at a minimum
annually.
• Documentation of organisationalboundaries.
• Documentation of operational boundaries.
• Documentation of Category boundaries.
• Description of the quantification
methodologies per Category usedwithin the framework of the study.
• Principles for collection of activity
data and EFs per Category.
• Consideration on uncertainty relative to the
GHG emissions assessed per Category.
• Results of the Scope 3 GHG emissions
assessment, for each of the relevant 15
Categories identified in the GHGP [GHGP-2]
and ITU-T L.142057.
• Recalculations, including corrections of
the corresponding clauses of the previous
chapters.
It is recommended that the reporting
telecommunication operators pursue at least
limited external assurance on their Scope 3
data, while striving for reasonable assurance.

56
57

ITU (2012), Recommendation ITU-T L.1420 (2012), Methodology for energy consumption and greenhouse gas emissions impact assessment of
information and communication technologies in organisations
ITU (2012), Recommendation ITU-T L.1420 (2012), Methodology for energy consumption and greenhouse gas emissions impact assessment of
information and communication technologies in organisations

Reporting74Appendix
Application of Supplier-level
Allocation Method (economic
activity data) – Categories 1 and 2

Alternative B

This Appendix gives formulae and examples
for calculations using the Supplier-level
allocation method (economic activity data).
Note: The numbers used in the examples are
fictive and are for illustrative purposes only.

Note: This alternative is mainly intended
for supplier’s Units. Potentially it could also
apply for contact centre services (withemissions specified per centre and country).

Alternative A

Depending on the Supplier’s organisational
structure and the level of commercial
collaboration a Supplier’s Unit may be aBusiness Unit, a Development Unit or similar.

1| EF for a Supplier – total emission approach1| E
 F for Supplier Unit types

Equation A.1 shows how the EF for a
Supplier in year Y is calculated withthe total emission approach.

This approach allocates the supplier’s
Category 1 emissions (S3C1) based on the
Unit’s share of overall procurement, andsupplier’s Scopes 1 and 2 and Scope 3,
Categories 2 to 8, based on the proportionof Unit in sales by the supplier. These arethen divided by revenue of the sale of theUnit to derive an EF for the Unit.



EF for Supplier in year Y (CO2e/currency) =Σ (Supplier S1, S2, S3 C1-8)Y÷(Supplier revenue sales)Y (A.1)

S1: Supplier Scope 1; S2: Supplier Scope 2;
S3: Supplier Scope 3: Cn: Category n
Example:For Y=2020, 3 Mt/€30 billion =0.1 kgCO2e/€.
2| Supplier-allocated emission towards an
Operator – total emission approach
Equation A.2 shows how Supplier-allocatedemissions towards an Operator is calculatedwith the total emission approach.
Emissions for Supplier-allocated emissions
towards Operator in year Y (CO2e) =(Operator spend per Supplier)Y×(Supplier S1, S2, S3C1-8)Y÷(Supplier revenue sales)Y (A.2)

Equation B.1 shows how the EF for Supplier
Unit type n in year Y is calculated.
(CO2e/currency)U. n, Y (CO2e/currency) = ((Share of Supplier’s total procurement)U. n,Y×Supplier S3C1Y+(share of Supplier’s sales
compared to total sales)U.n,Y
×Supplier S1.2, S3C2-8Y))÷(revenue sales)Un,Y (B.1)

Examples:Unit type 1 in year Y=2020, ((60% × 2 Mt +50% × 1 Mt))/€15 billion = 0.113 kg CO2e/€.
Unit type 2 in year Y=2020, ((40% × 2 Mt +50% × 1 Mt))/€15 billion = 0.0866 kgCO2e/€.

Example: for Y=2020, €500 million × 3 Mt/€30 billion = 50,000 tonnes CO2e.

2| S upplier-allocated emissions towards
Operator – Unit allocation emission
approach

Appendix75Equation B.2 shows how Supplier-allocatedemissions towards the telecommunication
operator is calculated for year Y with theUnit allocation emission approach.
 Supplier allocation to Operator upstream
Scope 3Y (CO2e) =∑(CO2e/currency)U.n,Y
×(Operator purchase from Supplier, currency).
Un,Y (B.2)

Example: Unit type 1 and Unit type 2 inyear 2020. 0.113 kgCO2e/euro × €325
million + 0.0866 kgCO2e/euro × € 175
million = 51.88 ktCO2e = 51 880 tCO2e.

3| EF for a Supplier (aggregation ofequipment) – Supplier Unit approach
Equation B.3 shows how the EF for a Supplier
towards an Operator in year Y is calculatedwith the Supplier Unit approach.
(Supplier EF towards Operator)Y(CO2e/currency) =∑(CO2e/currency)Un, Y
×Operator purchase sharefrom Supplier, %)U.n,Y (B.3)

Example: Unit 1 and 2 in year 2020. 0.113 kg
CO2e/€ × 65% + 0.0866 kgCO2e/€ × 35% =0.103 kgCO2e/€.

Bibliography[CEN][GHGP-3]

CEN, CSN EN 16258 (2012), Methodology
for calculation and declaration of energy
consumption and GHG emissions oftransport services (freight and passengers)

GHG Protocol, Life Cycle Databases,
Available [viewed 2022-12-15] at:
ghgprotocol.org/life-cycle-databases[GHGP-1]
GHG Protocol, A Corporate Accounting andReporting Standard, Available [viewed 202212-15] at: ghgprotocol.org/sites/default/files/
standards/ghg-protocol-revised.pdf[SBTi]
Science-Based Targets initiative (2020), ICT
operators – Guidance for ICT Companies
Setting Science Based Targets. Available[viewed 2022-12-15]: sciencebasedtargets.
org/sectors/ict[GHGP-2]
GHG Protocol, Corporate Value Chain(Scope 3) Accounting and ReportingStandard, Available [viewed 2022-1215] at: ghgprotocol.org/sites/default/
files/standards/Corporate-Value-ChainAccounting-Reporing-Standard_041613_2.pdf

Appendix and bibliography

76

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