Technology Features of Alfa Systems
Scope 3 Reporting icon

Scope 3 Emissions Reporting

Report on your portfolio’s Scope 3 emissions with Alfa Systems.

Landing gfx
A graphic depicting the earth, some helping hands and the title "The Road to Net Zero"

Using new functionality available in Alfa Systems, providers of equipment and automotive finance can now track and report on their operations’ Scope 3 greenhouse gas (GHG) emissions.

  • A complementary add-on for current and prospective Alfa customers

Scope 3 Reporting measures emissions at the asset level, based on published emissions data and actual or predicted usage, and is available for reporting or extraction from the Alfa Systems reporting database - helping you make smarter, more sustainable decisions.

Features and benefits

Create Scope 3 reporting to help you meet published and future regulatory requirements for GHG emissions.

  • Track all of the emissions-producing assets in your portfolio.
  • Identify actual and predicted usage, over usage periods or the life of a contract.
  • Update usage automatically via web services; for example, from a telemetry data feed or adjacent system.
  • Retrieve published emissions data for classified assets.
  • Applies to a diverse range of portfolios, including plant and machinery, construction, as well as ICE, EV and hybrid vehicles.
  • A complementary add-on for current and prospective Alfa customers.

What are Scope 3 emissions?

On the road to net zero, leaders are increasing their focus on sustainability. Carbon emissions are measured and assessed in three scopes:

Scope 1 (direct)

Covers emissions from sources an organisation owns or controls directly, such as fuel you burn.

Scope 2 (indirect, owned)

Emissions come mostly from where you purchase your energy.

Scope 3 (indirect, not owned)

Emissions are those up and down the value chain for which you are indirectly responsible, such as a portfolio of financed assets.

From 2025, companies in Europe, including those based elsewhere with European operations, will be required to report Scope 3 emissions across their value chain.

While reporting on Scope 3 isn’t yet a US mandate, Scope 3 is a requirement of the Science Based Targets initiative (SBTi)'s global Net Zero standard.

An organisation must choose whether to account for its GHG emissions on the basis of whether it has financial or operational control of the leased assets. The same approach must then be taken for all assets.

To avoid having to report the emissions for operating leases as Scope 1 or 2, we expect the majority of our customers to choose the operational approach. Therefore, the full emissions for all leased assets would fall into Scope 3 for the lessor.

About financed motor emissions

Financed emissions from motor vehicle loans (of all types - tractors and trucks, as well as cars) can be calculated in several ways, depending on what data is available to derive the vehicle’s emissions:

Option 1 (most accurate): Actual, vehicle-specific emissions

Based on either (i) primary data on actual vehicle fuel consumption, or (ii) vehicle efficiency and fuel type (fossil or electricity), from known vehicle make and model and primary data for actual vehicle distance travelled.

Option 2 (estimated): Estimated, vehicle-specific emissions

Assumed mileage based on local or regional statistical data, for known vehicle make and model.

Option 3 (fallback): Estimated, vehicle-unspecific emissions

Assumed emissions based on average vehicle.

Use cases

We have considered the following use cases:


..responsible for ESG reporting of a vehicle finance portfolio, should:

  • Accurately report the Scope 3 emissions of the vehicles and similar assets under finance in the way defined by the Greenhouse Gas Protocol.
  • Calculate the GHG emissions for petrol and diesel vehicles based on the known mileage and emissions for the vehicle model.
  • Calculate the indirect GHG emissions for electric vehicles based on the electricity used and the changing carbon intensity of the electricity used to charge the vehicle.
  • Calculate the emissions based on either actual data retrieved from the vehicle telemetry, or the projected usage where this isn’t available.
A member of a data reporting team

..needs to access Scope 3 emissions data through Alfa Systems’ Operational Data Store API.

A customer service or audit user

..may need to view the Scope 3 emissions data via the Alfa Systems user interface.

Alfa has developed a sophisticated reporting method to report attributable emissions for all of the above, and more. 

Get in touch.

GHG Reporting is a complementary add-on for current and prospective Alfa customers.

Contact Alfa today.

Read more about Business Intelligence in Alfa Systems.