Understanding how to account for emissions from vehicles owned or leased by your organisation can be complex, especially when determining the correct reporting categories. To simplify this, we’ve compiled a list of frequently asked questions (FAQ) to guide you in allocating emissions correctly for both owned and leased vehicles.
Leased fleet (Vehicles leased by the reporting company)
How should leased vehicle emissions be accounted for?
If the vehicles are used by, or leased to, customers report under S3C13: Downstream leased assets.
If the vehicles are used by employees (operational lease), report under S1: Mobile combustion or S2: Purchased electricity, depending on the fuel used.
Should leasing fees be included in S3C1?
Yes, but only if the fee refers solely to the renting service and not to the fuel burned to operate the vehicle. If using the Spend-based method you can categorise it under the Plan A category: Automotive equipment rental and leasing
Should emissions from the production of leased vehicles be included in the company’s CCF?
No, emissions from the production of leased assets fall outside the reporting company’s boundaries as they are part of the upstream supply chain of vehicle production. These emissions are accounted for by the company that originally purchased the vehicles.
What happens when leased vehicles are returned by the reporting company to the lessor?
Once returned, the vehicles exit the reporting organisation's reporting boundaries.
Purchased fleet (Vehicles owned by the reporting company)
How should owned fleet emissions be accounted for?
If the vehicles are used by, or leased to, customers you can report under S3C13: Downstream leased assets.
If the vehicles are used by employees (operational lease) report under S1: Mobile combustion or S2: Purchased electricity, depending on the fuel used.
Should fuel purchase fees be included in S3C1?
Fuel purchase fees should not be included in S3C1 if the fuel consumption has already been accounted in S1: Mobile combustion (or S2: Purchased electricity for electric vehicles) for company-owned and leased vehicles used internally.
Should emissions from the production of vehicles owned by my company be included in my CCF?
Yes, emissions from the upstream supply chain of vehicles owned by the reporting company are within the company’s reporting boundaries and should be accounted for in the CCF at the time of purchase.
How should I account for the purchase of vehicles?
The purchase fee for the vehicle, i.e., the cost of the owned fleet, should be accounted for in S3C1: Purchased goods and services.