Introduction
Scope 3.9 emissions, also known as "downstream transportation and distribution" emissions, are associated with the transportation of goods from your organisation to your customers. These emissions are an essential part of your carbon footprint, especially if you handle a high volume of shipments. This guide will walk you through how to account for these emissions in a straightforward and efficient way.
What Counts as Scope 3.9 Downstream Distribution?
Scope 3.9 covers the emissions generated when transporting and distributing your products from your organisation to your end customers. This includes emissions from:
Outbound logistics, such as shipping finished products to retailers, customers, or distribution centres.
Third-party transportation providers, where goods are transported by external logistics companies on your behalf.
Direct deliveries to customers, especially for e-commerce or retail businesses.
Examples of When to Include Scope 3.9 Emissions:
You ship products to retailers or wholesalers: If you’re delivering products to retail outlets or wholesalers, the emissions from these deliveries are part of your Scope 3.9 emissions.
You use third-party logistics (3PL) providers: If your goods are transported to customers by a third-party courier or freight company, the emissions from their transport activities must be included.
Direct deliveries to end customers: For example, if you run an e-commerce store and deliver products to customers’ homes, these emissions count towards your Scope 3.9 emissions.
Key Considerations:
Identify the Transportation Method: Are your products transported by truck, ship, rail, or air? Each mode has different emission factors, which are important for accurate calculations.
Distance Travelled: Measure the distance your goods travel from your organisation to the customer’s location. This is typically measured in kilometres (km).
Weight of Your Goods: Understand the weight of the goods being transported, especially if they share transport space with other products. You’ll need to calculate the emissions based on the proportion of weight your goods occupy.
Methods for Calculating Emissions:
1. Fuel-based Method
When to use: If you have data on the type and amount of fuel consumed during transportation.
How it works: Multiply the fuel consumption by the emission factor for that type of fuel. This method provides a precise calculation if fuel data is available.
2. Distance-based Method
When to use: If you know the distance travelled and the weight of your goods but don't have fuel data.
How it works: Use the formula:
Emissions = Distance (km)× Weight (tonnes)×Emission Factor (kg CO₂e per tonne-km)
Example: If your goods weigh 5 tonnes and travel 800 km by truck to reach a retail outlet, multiply 5 by 800 and then by the truck’s emission factor (e.g., 0.1 kg CO₂e/tonne-km).
3. Supplier-specific Method
When to use: If you have specific emission data from the third-party transport provider or customer who received the goods.
How it works: Input the emission factor provided by the third-party transporter or customer. This is useful if they have calculated emissions for their transport of your goods.
4. Direct Entry Method
When to use: If you already have total emissions data (in kg CO₂-eq) for the downstream transportation process.
How it works: Enter this data directly into your accounting system.
Prioritising the Most Material Emissions Sources:
If your organisation manages a high volume of shipments to customers, tracking emissions for every shipment can be time-consuming. To streamline this process, we recommend focusing on the most material sources of emissions, such as:
Shipments with the largest weights
Shipments that travel the longest distances
Frequent delivery routes
By concentrating on these significant emission sources, you capture the bulk of your downstream emissions impact while saving time.
Handling a High Volume of Shipments:
For organisations dealing with numerous shipments annually, tracking each one individually can become overwhelming. Here are some strategies to manage this efficiently:
Use approximations or projections: Make reasonable estimates for smaller or less significant shipments using average distances, weights, and transportation modes.
Group similar shipments together: Combine shipments with similar characteristics (e.g., weight, distance, transport method) and calculate an average emission factor for the group. This helps maintain accuracy while reducing the workload.
At KEY ESG, we encourage you to gather as much data as possible to capture your downstream emissions accurately, but we recognise that smaller organisations with limited resources may find this challenging. Focusing on the most significant elements will still give you a realistic picture of your Scope 3.9 emissions.
Worked Example:
Suppose your organisation ships a batch of products from your warehouse in the UK to a retailer in France via truck. The shipment weighs 3 tonnes, and the truck travels 1,000 km to reach the retailer.
Use the distance travelled: 1,000 km.
Calculate the weight: 3 tonnes.
Apply the emission factor for trucks (e.g., 0.1 kg CO₂e per tonne-km).
Calculation:
1,000km × 3tonnes × 0.1kg CO₂e/tonne-km = 300kg CO₂e
Your organisation would report 300 kg CO₂e for this downstream transportation activity.
Conclusion:
Accurately calculating Scope 3.9 downstream distribution emissions is crucial for a comprehensive view of your organisation's carbon footprint. By using the methods outlined above and focusing on the most material sources of emissions, you can ensure your reporting is both accurate and efficient. If you have any questions or need assistance with calculating your downstream emissions, feel free to reach out to us via in-platform chat or email at support@keyesg.com.