Column 2024.11.05

What are the GHG emission amount when using a rented office and a shared office? Explaining the difference between the two and specific calculation methods

table of contents

By using a shared office, you can reduce initial costs. Therefore, it is suitable for sole proprietors, start-up companies, and companies introducing remote work, and the number of companies introducing it is increasing.
Here, we will explain how to calculate GHG (greenhouse gas) emission amount when using a shared office, taking into account Scopes 1 to 3.

What is the difference between rented offices and shared offices? Advantages and features

A rental office is an office space that can be used exclusively by your company.

Typically, a lease agreement is signed, allowing for long-term use. Another advantage is that the space is generally available 24 hours a day, and since it is used exclusively by the company, it is easy to create an environment that is optimal for business.

A shared office is an office space that is used jointly by multiple companies or individuals.

The advantages are that fixed costs such as utility bills are dispersed, and the office is fully equipped with desks, chairs, etc., reducing costs. In addition, short-term contracts are often possible, and it can flexibly respond to corporate growth and changes in headcount.

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Scope 1 to 3 concepts

The GHG Protocol, an international standard for calculating and reporting GHG (greenhouse gas) emission amount, classifies emission amount throughout the supply chain into three categories: Scope 1, 2 and 3.

Scope 1	Direct greenhouse gas emissions by businesses themselves (fuel combustion, industrial processes)
Scope 2	Indirect emissions from the use of electricity, heat, and steam supplied by other companies
Scope 3	Indirect emissions other than Scope 1 and Scope 2 (emissions of other companies related to the activity of the company)

Calculating GHG emission amount from rented offices

The calculation method for rented offices differs depending on the type of office contract. This article explains how to calculate emission amount from rented offices from the perspective of Scopes 1 to 3.

・In the case of operating lease

If the office under contract is an operating lease and the responsibility for the risks and rights to the benefits of owning the asset belongs to the head office, you can choose whether to calculate the CO2 emission amount associated with office use as Scope 1 or 2, or as Scope 3 Category 8.

If the amount of electricity and gas consumed within the office can be determined, calculate it under Scope 1 and Scope 2. If it cannot be determined, calculate it under Scope 3, Category 8 "Buildings" based on the site area.

・Finance/capital lease

If the leased office is a finance/capital lease and the responsibility for the risks and rights to the profits of the asset ownership belong to the sales office, CO2 emission amount associated with the use of the office are calculated as Scope 1 and 2.

Calculating GHG emission amount in shared offices

It is necessary to calculate GHG emission amount when using a shared office. We will explain how to calculate and allocate emission amount in a shared office from the perspective of Scope 1 to 3.

・Scope classification related to shared office use

Since we mainly use shared spaces, we do not need to worry about Scope 1 emissions.

Scope 2 includes electricity consumption based on the time a shared office is used, while Scope 3 includes emissions associated with employee commuting and emissions associated with the Manufacturing and disposal of office supplies and equipment.

- Method of allocating emission amount

Since shared offices are used jointly by multiple companies, the total GHG emission amount must be apportioned among each company.

For shared areas where there is no clear division between Company, such as the occupied floor space or occupied capacity within the office, two allocations can be considered: 1) allocation based on physical quantity, or 2) allocation based on economic value.

Regarding ①, the calculation will be based on the usage time, number of times used, number of registered users, etc. by Company.

Regarding ②, the amount will be apportioned based on the shared office usage fees for each Company.

summary

Understanding GHG emission amount during office use can lead to specific actions to reduce emission amount for companies. However, rather than simply aiming to allocate a strict overall figure, it would be better if allocations were made with an expectation of encouraging users and providers to refine their future measurements and linking them to specific reduction actions.

As part of a sustainable business, understand the impact your office has on the environment.

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GHG emission amount calculation/visualization,
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