For many companies, carbon reporting ends when the product is sold—but for asset-heavy businesses, the carbon journey continues. If your company owns assets that are leased out to others, those assets may still contribute to your climate footprint. Enter Scope 3 Category 13, one of the most often misunderstood categories in the GHG Protocol framework.
In this blog, we’ll explore what Scope 3 Category 13 covers, why it matters, and how businesses can better manage and report emissions from downstream leased assets as part of their climate strategy.
Scope 3 Category 13 includes emissions from the operation of assets that are owned by the reporting company but leased to other entities, and not already included in Scope 1 or Scope 2.
In simpler terms, it’s about:
These emissions typically represent the lessee’s Scope 1 and Scope 2 emissions, but under certain organizational boundary conditions, the lessor (you) must report them under Scope 3 Category 13.
For companies in real estate, automotive, or industrial leasing, these assets can generate substantial operational emissions over time—even though the usage is outsourced.
If downstream leased assets are material to your business, reporting them is required under the GHG Protocol and expected in CDP disclosures.
Investors, clients, and regulators increasingly expect companies to take responsibility for all emissions linked to their operations—even those outside their operational control.
Tracking emissions from leased assets supports the shift to:
Category 13 applies to lessors, i.e., companies that:
If your company operates leased assets (i.e., you are the lessee), emissions are reported under Scope 3 Category 8 instead.
Sprih Insight: It’s important to avoid double-counting between Category 11 (Use of Sold Products) and Category 13. If your leased product behaves like a sold product (e.g., in usage and duration), you may classify it under Category 11 instead.
Once an asset is leased, companies often lose insight into how it’s used, maintained, or powered. Without clear reporting frameworks in the lease agreement, gathering emissions data becomes difficult.
Lessee data may be:
This complicates the allocation of emissions to specific leased assets.
From short-term equipment rentals to multi-year real estate contracts, the scope, size, and energy profile of leased assets can vary significantly—requiring tailored approaches to data collection and performance benchmarking.
Many existing leases do not include provisions for GHG disclosure, energy use reporting, or sub-metering requirements, making post-hoc emissions tracking difficult.
Even if you don’t control the operations, you can still influence emissions through smarter leasing models.
Incorporate sustainability terms into lease agreements:
Upgrade buildings, vehicles, or equipment with:
Bundle leased products with:
Use digital dashboards to:
With Sprih, you can centralize emissions data across leased assets, automate tracking, and generate audit-ready reports aligned with GHG Protocol, SBTi, and CDP requirements.
Scope 3 Category 13 is more than just a compliance checkbox—it’s a window into how your assets are used after they leave your control. With investor pressure rising and climate disclosure becoming the norm, managing emissions from leased assets can drive competitive advantage, cost savings, and carbon reductions.
Whether you’re in real estate, manufacturing, mobility, or technology, it’s time to look beyond the lease and into the lifecycle. Request a Demo to see how Sprih helps you capture value chain emissions from downstream leased assets.
Click here to learn more about managing Scope 3 across the value chain.
