Upstream Leased Assets (Scope 3 Category 8)
Category 8 of Scope 3 covers emissions from the operation of assets leased by the reporting company that are not already included in Scope 1 or Scope 2.
What is Upstream Leased Assets (Scope 3 Category 8)?
This category applies when a company leases assets (buildings, vehicles, equipment) and the associated emissions are not captured in its Scope 1 or 2 inventory due to the chosen consolidation approach. For example, if a company uses the financial control approach and leases an office under an operating lease, the energy emissions from that building may fall into Category 8 rather than Scope 1 or 2.
In practice, many organisations find that their leased assets are already included in Scope 1 and 2 under the operational control approach (the most commonly used consolidation method). In this case, Category 8 may not be applicable or may have zero emissions. The distinction depends entirely on the reporting company’s chosen organisational boundary.
Category 8 is most relevant for companies with significant leased property portfolios where the landlord controls energy procurement and the tenant has limited visibility of consumption data.
Practical Examples
A company using the financial control approach reports energy emissions from its leased office spaces in Category 8, as it does not have financial control over these assets.
A retailer leasing 100 high-street stores finds that all store energy is already captured in Scope 2 under the operational control approach, so Category 8 is not applicable.
A logistics company leasing warehouse space calculates the energy emissions of leased facilities where the landlord manages utility contracts, reporting them as Category 8.
How Climatise Helps
Climatise helps determine whether your leased assets fall under Scope 1/2 or Category 8 based on your consolidation approach, ensuring emissions are correctly allocated and not double-counted across scopes.
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