Avoided emissions from pallet reuse: how to report them
Avoided emissions compare what happened with what would have happened, for example reuse instead of landfill. The GHG Protocol's Scope 3 Standard says such claims are not included in or deducted from the scope 3 inventory but reported separately, with method, data sources, boundary and time period (Box 5.6; section 9.5).
What the Standard says
Box 5.6 of the Scope 3 Standard: companies should not report negative or avoided emissions associated with recycling in category 5 or 12; claims of avoided emissions may be reported separately from scopes 1, 2 and 3, with data showing the emissions really are avoided and the methodology, data sources, system boundary and time period used (GHG Protocol).
Computing it for pallets
Use EPA's WARM factors for dimensional lumber and compare two scenarios. Moving T short tons from landfill to reuse avoids T × (−1.66 − (−0.92)) = −0.74 × T MTCO2E. For 10 tons that is −7.4 MTCO2E (WARM v16, Exhibit 12-3). The Pallet Fate Report does this for any mix and shows its arithmetic.
Most of the reuse credit is forest carbon: −1.56 of the −1.66 (Exhibit 12-9). Say so. A reader who assumes the number is saved fuel will be misled.
A disclosure that holds up
'Diverting 98 short tons of wood pallets from landfill to reuse in 2026 avoided an estimated 73 MTCO2E compared with landfilling, using EPA WARM v16 factors for dimensional lumber (Exhibit 12-3), which include forest carbon storage. This estimate is reported separately from our scope 3 inventory and is not deducted from it.'
Sources
- Corporate Value Chain (Scope 3) Accounting and Reporting Standard GHG Protocol (WRI/WBCSD). Accessed October 27, 2026. Box 5.6 and section 9.5 on avoided emissions; section 5.5 category descriptions.
- Documentation for Greenhouse Gas Emission and Energy Factors Used in WARM, Version 16: Construction Materials Chapters, ch. 12 Wood Products (EPA-530-R-23-020) U.S. EPA. Accessed October 27, 2026. Exhibits 12-3 (p. 12-3), 12-9, 12-13, 12-15 and 12-16 (p. 12-10).