Requirements and guidelines according to the GHG Protocol
Category 3.14 of the Greenhouse Gas (GHG) Protocol covers all indirect GHG emissions resulting from the business activities of franchise operations that are not directly under the operational control of the reporting company.
Key requirements
Source identification: Companies should record all franchise operations that cause emissions through their business activities.
Reporting methods: Calculations can be based on energy consumption, operating performance or industry-specific benchmarks.
Emission factors: Use of standardized emission factors from recognized databases such as IPCC, Ecoinvent or national environmental authorities.
Reporting period: Recorded emissions should be synchronized with operational franchise data.
Units: Emissions should be documented per franchise operation in kg CO2e per unit of quantity (e.g. kWh, turnover, operating hours).
Recording in NetCero
Follow these steps to record emissions from franchise operations in NetCero:
Create activity: record all relevant franchise operations as separate activities in the system.
Assign responsibility: Designate a person responsible for data entry and maintenance.
Assign company unit: Assign each activity to the correct corporate entity to ensure clear allocation.
Select emission factors: Users standardized emission factors from the NetCero database or external sources.
Define your own emission factors: Add company-specific factors if more accurate data is available from franchise operations or industry organizations.
Document operating data: Record typical consumption values or expected usage directly in the table within the activity - based on franchise reports or industry statistics.
Automatic emission calculation: NetCero calculates the emissions per franchise operation and integrates them into the overall balance.
Examples of emissions from franchise operations
Example 1: Franchise restaurants
A company operates 100 franchise restaurants with an average annual energy consumption of 200,000 kWh per site. If the emission factor for electricity is 0.4 kg CO2e/kWh, the emissions amount to
100 x 200,000 kWh x 0.4 kgCO2e/kWh = 8,000,000 kgCO2e (8,000 tCO2e)
Example 2: Retail franchise
A retail company has 50 franchise stores with an average annual turnover of 2 million euros per site. If the emission factor for retail is 0.03 kg CO2e/€ turnover, the emissions are:
50 x €2,000,000 x 0.03 kgCO2e/€ = 3,000,000 kgCO2e (3,000 tCO2e)
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