Downstream Emissions
Indirect greenhouse gas emissions that occur after a product or service leaves the reporting organisation, covering Scope 3 Categories 9-15 under the GHG Protocol.
What is Downstream Emissions?
Downstream emissions encompass all indirect emissions in the value chain that occur after the reporting organisation's operations. Under the GHG Protocol, downstream categories include: downstream transportation and distribution (Category 9), processing of sold products (Category 10), use of sold products (Category 11), end-of-life treatment of sold products (Category 12), downstream leased assets (Category 13), franchises (Category 14), and investments (Category 15).
The significance of downstream emissions varies dramatically by business model. For energy companies and vehicle manufacturers, Category 11 (use of sold products) typically dominates — the emissions from burning the fuel or driving the car far exceed manufacturing emissions. For financial institutions, Category 15 (investments) is usually the largest category, representing the financed emissions of their portfolio.
Downstream emissions are often harder to calculate than upstream because they depend on customer behaviour, product lifetime, and end-of-life scenarios. The GHG Protocol provides default assumptions and calculation guidance for each category.
Practical Examples
An electronics manufacturer calculates Category 11 emissions by estimating the average electricity consumption of its products over their expected 5-year lifetime, multiplied by the number of units sold.
A bank calculates Category 15 (financed emissions) using the PCAF methodology, attributing portfolio company emissions to its loans based on the proportion of financing provided.
A franchisor calculates Category 14 emissions across its franchise network by collecting energy consumption data from franchisees and applying appropriate emission factors.
How Climatise Helps
Climatise supports the calculation of downstream Scope 3 categories, including use of sold products, end-of-life treatment, and financed emissions. The platform provides the modelling tools to estimate customer-phase emissions based on product specifications and usage patterns.
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