Since the introduction of the GHG Protocol’s new guidance on Scope 2 emissions in 2015, companies have had the opportunity to report the emissions associated with their electricity consumption in a way that more accurately reflects their purchasing choices; the market-based approach.
This means electricity obtained from a low-carbon supplier can now be reflected in your Scope 2 reporting. However, there has been a lot of confusion on how to calculate and report market-based emissions, particularly when it comes to purchased renewable electricity.
Under the market-based approach to the GHG protocol, companies can use supplier-specific emission factors when reporting energy consumption. This reflects the carbon footprint associated with the electricity that a company is purchasing rather than what is produced locally. This is with the hope that incentivised by the reduction in their Scope 2 emissions, companies will purchase electricity from low-carbon suppliers, and in turn drive a greater supply of low-carbon energy.
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