Understanding GHG Protocol Category 11: Use of Sold Products

In the pursuit of sustainability and reducing carbon footprints, businesses are increasingly turning to the Greenhouse Gas (GHG) Protocol to guide their efforts. Among its various categories, Category 11—Use of Sold Products—plays a crucial role in understanding and mitigating the environmental impact of products post-sale. This blog delves into the intricacies of Category 11, exploring its significance, challenges, and strategies for marine businesses to effectively measure and manage emissions from the use of their sold products.

What is Category 11?

Category 11 of the GHG Protocol pertains to the indirect greenhouse gas emissions resulting from the use of a company’s sold products. Unlike direct emissions (Scope 1) and indirect emissions from energy consumption (Scope 2), Category 11 falls under Scope 3, encompassing a wide range of direct and indirect emissions throughout the value chain. When related to the marine industry, this might include high emissions from direct use products such as vessels, engines, generators, charters, or technically zero emissions for direct use products, such as fishing nets, sails, lines, or fenders. These emissions occur after the product has left the company’s control, often making them more complex to track and manage.

Why is Category 11 Important?

Understanding and addressing Category 11 emissions is crucial to the marine industry for several reasons:

1. Comprehensive Carbon Footprint: For many marine sector companies, emissions from the use of sold products could constitute a significant portion of their overall carbon footprint. Ignoring this category means missing out on a substantial opportunity for reduction.

2. Net Zero: To achieve and communicate a net zero target, all emissions across all three scopes should be measured and reported on, so capturing this data is essential.

3. Regulatory Compliance and Reporting: With increasing regulatory demands and the rise of sustainability reporting standards, companies must account for all relevant emissions, including those in Category 11, to ensure compliance and maintain transparency.

4. Customer and Investor Expectations: Stakeholders are becoming more environmentally conscious, expecting companies to take responsibility for the full lifecycle of their products. Addressing Category 11 emissions can enhance a company’s reputation and appeal to eco-minded customers and investors.

5. Innovation and Efficiency: Identifying emissions in the use phase can drive innovation, leading to more energy-efficient products and services, ultimately benefiting both the environment and the company’s bottom line.

Challenges in Measuring Category 11 Emissions

Despite its importance, measuring emissions in Category 11 presents several challenges:

1. Data Availability: Accurate data on how products are used by consumers can be difficult to obtain, particularly for products with long lifespans or varied usage patterns.

2. Estimation Methods: Estimating emissions requires assumptions about product usage, energy sources, and geographic variations, all of which can introduce uncertainties.

3. Diverse Product Range: Companies with a wide range of products face the additional challenge of developing specific methodologies for different categories, each with unique usage profiles.

4. Consumer Behavior: The actual use of a product can differ significantly from its intended use, affecting the accuracy of emissions estimates.

Strategies for Managing Category 11 Emissions

To effectively manage and reduce Category 11 emissions, companies can adopt several strategies:

1. Life Cycle Assessment (LCA): Conduct comprehensive LCAs to understand the environmental impact of products throughout their lifecycle, from production to disposal. This provides a solid foundation for estimating use-phase emissions.

2. Enhanced Product Design: Focus on designing energy-efficient products that consume less power during use. Innovations such as low-energy appliances, fuel-efficient vehicles, and software optimizations can significantly reduce emissions.

3. Consumer Education: Educate consumers on how to use products in the most energy-efficient manner. This can include instructions for optimal use, maintenance tips, and information on energy-saving settings.

4. Data Collection and Analysis: Invest in technologies and methodologies for better data collection on product use. This can include smart sensors, customer engagement, and collaboration through carbon accounting platforms.

5. Collaboration and Partnerships: Work with industry groups, NGOs, and other stakeholders to develop standardized approaches and share best practices for measuring and reducing use-phase emissions.

6. Setting Targets and Reporting: Establish clear, science-based targets for reducing Category 11 emissions and report progress transparently. This not only demonstrates commitment but also drives accountability and continuous improvement.
   

Conclusion

Category 11 of the GHG Protocol is a critical component of a company’s sustainability strategy. By understanding and addressing the emissions associated with the use of sold products, businesses can make significant strides towards reducing their overall environmental impact. While challenges exist, innovative solutions and a commitment to transparency and continuous improvement can help companies navigate this complex but essential aspect of GHG management. As consumers and regulators increasingly demand comprehensive climate action, proactively managing Category 11 emissions will be a key differentiator for forward-thinking businesses.

Using the seaotool enables this collaboration with a tool that is structured around vessel departments and featuring products and activities in a way that is intuitive and efficient to use.