Pallet Fate Report methodology
The report turns pallet counts into short tons of wood, then applies EPA's WARM v16 dimensional lumber factors for the change in emissions and EPA's 2025 emission factors hub for a scope 3 category 5 figure. The two are kept apart, as the GHG Protocol asks.
1. Pallets to tons
T = N × periods per year × (1 − pooled share − plastic share) × w ÷ 2000
N is pallets leaving the site per month (12 periods) or per week (52). Pooled pallets go back to their owner, so they aren't your waste and aren't in T. Plastic pallets are left out because WARM's factors here are for wood. The weight presets are new 48×40 in. designs from USDA Forest Products Laboratory report FPL-RP-707, Table 2, p. 8 (48 x 40 in. designs): 31, 41, 44 and 67 lb. Used pallets vary, so weigh a sample if you can.
2. Avoided emissions with WARM v16
E = T × (R × EF_reuse + C × EF_combustion + L × EF_landfill), and ΔE = E_proposed − E_current. Negative ΔE is a reduction.
| Pathway | MTCO2E per short ton | Where in WARM v16 |
|---|---|---|
| Reuse | -1.66 | Exhibit 12-3, p. 12-3 (column 'Net Reuse Emissions'; footnote a: modeled as reuse under WARM's recycling pathway). Exhibit 12-9: process and transport energy credit -0.10, forest carbon storage -1.56 |
| Combustion with energy recovery | -0.58 | Exhibit 12-3, p. 12-3; components in Exhibit 12-13. Exhibit 12-13: transport 0.01, N2O 0.04, avoided utility emissions -0.63 |
| Landfilling, national average landfill gas collection | -0.92 | Exhibit 12-3, p. 12-3; components in Exhibit 12-15, p. 12-9. Exhibit 12-15: transport 0.02, landfill CH4 0.15, landfill carbon storage -1.09 |
| Landfill without gas recovery | -0.92 | Exhibit 12-16, p. 12-10 (landfills without LFG recovery) |
| Landfill with gas recovery and flaring | -1.01 | Exhibit 12-16, p. 12-10 (LFG recovery and flaring) |
| Landfill with gas recovery and electricity | -1.02 | Exhibit 12-16, p. 12-10 (LFG recovery and electricity generation) |
| Composting (not applicable in WARM) | NA | Exhibit 12-3: NA for dimensional lumber |
Grinding to mulch, bedding or fuel has no WARM factor for dimensional lumber (composting is NA), so it counts toward diversion with zero emissions credit. Treat that as conservative, not as a finding that grinding has no benefit.
WARM credits landfilled wood with carbon storage (−1.09 in Exhibit 12-15), which is why landfill scores below zero and why moving pallets from landfill to reuse gains less than many people expect.
Worked example: ten tons from landfill to reuse
10 × (-1.66 − (-0.92)) = -7.4 MTCO2E a year. A naive calculator that scored landfill at zero would claim -16.6.
3. Scope 3 category 5 inventory
I = T × (L × 0.17 + C × 0.05)
These are the dimensional lumber rows of EPA's GHG Emission Factors Hub 2025, Table 9 (MTCO2e per short ton, including transport, excluding avoided emissions). Table 9 gives NA for recycled and composted dimensional lumber, so reuse and grinding add nothing to I. We don't substitute the mixed recyclables factor. See Hub waste factors for pallets.
The GHG Protocol Scope 3 Standard says avoided emissions from recycling are not included in, or deducted from, category 5, and may be reported separately. The report shows ΔE and I side by side for that reason.
4. Diversion rate and costs
Diversion is by pallet count: (pooled + wood × (reuse + grinding [+ combustion if you tick it])) ÷ (pooled + wood). Plastic is left out. Tons diverted from landfill is T × (L_current − L_proposed). Costs are only shown when you enter your own quotes: 12 × pulls × haul + T × L × tipping fee − rebate × reused pallets. We never fill in prices.
Worked example: a distribution site
400 pallets a month, 20% pooled, 41 lb each. Today 70% landfill, 20% reuse, 10% ground. Proposed: 80% reuse, 20% ground.
- T = 400 × 12 × (1 − 0.2) × 41 ÷ 2000 = 78.72 short tons
- E current = 78.72 × (0.2 × -1.66 + 0.7 × -0.92) = -76.83
- E proposed = 78.72 × (0.8 × -1.66) = -104.54
- ΔE = -27.71 MTCO2E a year, about 6.5 passenger vehicles for a year at 4.29 each
- I current = 78.72 × 0.7 × 0.17 = 9.37 MTCO2e; I proposed = 0.00
- Diversion by count: 44% → 100%
What the report can't tell you
- It uses averages. A measured tonnage from your hauler beats a count times a typical weight.
- WARM is a planning model, not an inventory method; use ΔE to compare options, not to offset your inventory.
- Rules flags cover only states we have checked. An unchecked state may still have local rules.
Sources
- 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).
- GHG Emission Factors Hub 2025, Table 9 (Scope 3 Category 5 and Category 12) U.S. EPA Center for Corporate Climate Leadership. Accessed October 27, 2026. The 2025 Hub is the latest listed on the Hub page on the access date.
- Guidance on using the Hub's waste factors versus WARM U.S. EPA. Accessed October 27, 2026.
- 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.
- Cradle-to-grave life-cycle assessment of wooden pallet production in the United States (Res. Pap. FPL-RP-707) USDA Forest Service, Forest Products Laboratory (Alanya-Rosenbaum and Bergman, 2020). Accessed October 27, 2026. Table 2 (p. 8): average weights of 48×40 in. designs.
- Greenhouse Gas Equivalencies Calculator: Calculations and References U.S. EPA. Accessed October 27, 2026. 4.29 metric tons CO2e per gasoline passenger vehicle per year; page updated August 4, 2026.