New clause for managing leased asset emissions

[Sarah’s Clause] Allocating Scope 1, 2 and 3 Emissions for Leased Assets 

What does the clause do?

Sarah’s Clause allocates responsibility for measuring and reporting the scope 1, 2 and 3 emissions of leased assets between the Lessor and Lessee. 

How does it achieve this?

By contractually obliging the parties to take responsibility to measure and report emissions from a leased asset, Sarah’s 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.

Why is the clause needed?

Asset lease agreements are typically ambiguous as to where responsibility lies for recording and reporting GHG emissions data for leased assets. This ambiguity can lead to duplication or non-recording of emissions, and confusion over who is responsible for ultimately reducing the climate impact of particular assets. 

Where can I find out more?

Sarah’s Clause will be linked as a resource to help companies clarify their emissions management obligations in Scope 3 Guidance for Telecommunications Operators, published by the global telecommunications networks GSMA, GeSI and ITU-T.

The Guidance explains the practical application of Sarah’s Clause for the telecommunications industry, but other sectors may also benefit from the explanation. Sarah’s Clause has been written generically, for applicability to any industry and type of leased assets.