--- title: Allocating Scope 1, 2 and 3 Emissions for Leased Assets date: 2024-03-27T14:15:42Z modified: 2025-07-23T11:10:58Z permalink: "https://chancerylaneproject.org/clauses/allocating-scope-1-2-and-3-emissions-for-leased-assets/" type: clause status: publish excerpt: "" wpid: 1993 jurisdiction: - England & Wales maintenance-status: - Not maintained practice-area: - Real estate and property sector: - Real estate clause_child_name: "Sarah's Clause" clause_summary: "

This clause allocates responsibility for measuring and reporting the scope 1, 2 and 3 emissions of leased assets between the Lessor and Lessee.

" clause_last_updated_date: 2023-05-25 related_clauses: false --- ## Child’s name Sarah’s Clause ## Summary This clause allocates responsibility for measuring and reporting the scope 1, 2 and 3 emissions of leased assets between the Lessor and Lessee. ## What this clause does By contractually obliging the parties to take responsibility for measuring and reporting emissions from leased assets, this clause reduces the possibility of missing, duplicating or inaccurately reporting emissions associated with the lease. In turn, this gives both Lessor and Lessee an accurate basis from which to improve the climate impact of the relevant assets. ## Clause Content _\[This_ c_lause is recommended as template wording to assign ownership of emissions in_ [_Scope 3 Guidance for Telecommunications Operators_](https://www.gsma.com/betterfuture/resources/scope-3-guidance#:~:text=This%20guidance%2C%20developed%20by%20the,%2C%20not%20supersede%2C%20existing%20standards.)_, published by the global telecommunications networks GSMA, GeSI and ITU-T (p.53)._\] **1. Responsibility for GHG Emissions in relation to Lessor Operated \[Resources\]** In relation to Lessor Operated \[Resources\]: **Obligations of the Lessor** 1.1 \[●\] months after the date of this \[Lease/ Agreement\] and every \[●\] months thereafter, the Lessor shall: (a) Measure the: (i) energy consumption data, and (ii) other direct consumption data not related to energy use, associated with the Lessee’s usage of Lessor Operated \[Resources\] \[in accordance with the GHG Protocol\*\]. (b) Using the data measured under clause 1.1(a), calculate the: (i) Scope 1 Emissions, and (ii) \[location-based and market-based\] Scope 2 Emissions, associated with the Lessee’s usage of Lessor Operated \[Resources\] \[in accordance with the GHG Protocol\]. \* \[_See_ [_GHG Protocol: Calculation Tools_](https://ghgprotocol.org/calculation-tools#sector_specific_tools_id) _for guidance._\] 1.2 For the purposes of the Lessor’s \[carbon accounting/ emissions reporting\] the Lessor shall \[record/ report\*\] the GHG Emissions under clause 1.1(b) as \[Scope 1 Emissions\] \[and\] \[Scope 2 Emissions\]\*\* of the Lessor \[in accordance with the GHG Protocol\]. \* \[_Drafting note: include ‘report’ where reporting requirements exist._\] \*\* \[_Drafting note: reporting entity to specify if it will report these as Scope 1 and/or Scope 2 Emissions._\] 1.3 The Lessor shall notify the Lessee of the energy consumption and other direct consumption data not related to energy use measured under clause 1.1(a) within \[●\] \[days/ Business Days\] of the relevant measurement. 1.4 The Lessor shall notify the Lessee of the \[Scope 1 Emissions\] \[and\] \[Scope 2 Emissions\] calculated under clause 1.1(b) within \[●\] \[days/ Business Days\] of the relevant calculation. **Obligations of the Lessee** 1.5 For the purposes of the Lessee’s \[carbon accounting/ emissions reporting\] the Lessee shall \[record/ report\*\] the Lessor’s reported \[Scope 1 Emissions\] \[and\] \[Scope 2 Emissions\] notified to it under clause 1.4 as scope 3, category 8 emissions (upstream leased assets) of the Lessee \[in accordance with the GHG Protocol\]. \* \[_Drafting note: include ‘report’ where reporting requirements exist._\] **2. Responsibility for GHG Emissions in relation to Lessee Operated \[Resources\]** In relation to Lessee Operated \[Resources\]: **Obligations of the Lessee** 2.1 \[●\] months after the date of this \[Lease/ Agreement\] and every \[●\] months thereafter, the Lessee shall: (a) Measure the: (i) energy consumption data, and (ii) other direct consumption data not related to energy use, associated with its usage of Lessee Operated \[Resources\] \[in accordance with the GHG Protocol\*\]. (b) Using the data measured under clause 2.1(a), calculate the: (i) Scope 1 Emissions, and (ii) \[location-based and market-based\] Scope 2 Emissions, associated with its usage of Lessee Operated \[Resources\] \[in accordance with the GHG Protocol\]. \* \[_See_ [_GHG Protocol: Calculation Tools_](https://ghgprotocol.org/calculation-tools#sector_specific_tools_id) _for guidance._\] 2.2 For the purposes of the Lessee’s \[carbon accounting/ emissions reporting\] the Lessee shall \[record/ report\*\] the GHG Emissions under clause 2.1(b) as \[Scope 1 Emissions\] \[and\] \[Scope 2 Emissions\]\*\* of the Lessee \[in accordance with the GHG Protocol\]. \* \[_Drafting note: include ‘report’ where reporting requirements exist._\] \*\* \[_Drafting note: reporting entity to specify if it will report these as Scope 1 and/or Scope 2 Emissions._\] 2.3 The Lessee shall notify the Lessor of the energy consumption and other direct consumption data not related to energy use, measured under clause 2.1(a) within \[●\] \[days/ Business Days\] of the relevant measurement. 2.4 The Lessee shall notify the Lessor of the \[Scope 1 Emissions\] \[and\] \[Scope 2 Emissions\] calculated under clause 2.1(b) within \[●\] \[days/ Business Days\] of the relevant calculation. **Obligations of the Lessor** 2.5 For the purposes of the Lessor’s \[carbon accounting/ emissions reporting\] the Lessor shall \[record/ report\*\] the Lessee’s reported \[Scope 1 Emissions\] \[and\] \[Scope 2 Emissions\] notified to it under clause 2.4 as scope 3, category 13 emissions (downstream leased assets) of the Lessor \[in accordance with the GHG Protocol\]. \* \[_Drafting note: include ‘report’ where reporting requirements exist._\] ## Topics **Jurisdictions:** [England & Wales](https://chancerylaneproject.org/news/jurisdiction/england-wales/) **Maintenance status:** [Not maintained](https://chancerylaneproject.org/news/maintenance-status/not-maintained/) **Practice Areas:** [Real estate and property](https://chancerylaneproject.org/news/practice-area/real-estate-and-property/) **Sectors:** [Real estate](https://chancerylaneproject.org/news/sector/real-estate/)