eBooks & Guides

FAQ ON CALCULATING SCOPE II Which method (Location or Market) should I use for performance tracking? For example, you can reduce your scope II location-based emissions by diminishing your actual consumption of energy. In contrast, market-based calculations exist to reflect your supply choices, especially those that are lower carbon options. By reporting Scope II Market-based emissions you are setting a precedent that you source low-carbon energy, and in order to meet reductions in this area, you will need to continue to source low-carbon energy or increase that sourcing. When setting targets, specify which method you use. Use scope II MB for setting renewable energy sourcing goals, and use scope II location-based for setting energy reduction goals. You can technically use either one or both for internal performance tracking and whichever you use for performance tracking should be disclosed in your sustainability reports or inventories. Remember that you should use both because you can track different metrics or benchmark different things for each method. If I don't make renewable energy purchases, do I still report on market based emissions? The answer is yes, you should either use residual factors in your market-based emissions calculations, or in the absence of residual factors your scope II totals for LB and MB could be identical, but this is expected to be a "short-term anomaly in the process of developing residual mixes". So yes, regardless of your contractual instruments or lack thereof, you should be practicing "dual reporting" on the location-based and market-based methods, because you want to be transparent and your lack of renewables sourcing can also be conveyed through your market- based totals. If using both the scope II location and market based methods, do we still report on our renewable energy sourcing? The GHG guidance suggests that you should report on emissions associated with low carbon energy use and generation separately from the scopes as well as listing your scope totals of course. I.e. report your scope I, II, II, then separately report on the amount of renewable energy generated, etc.. and the amount of emissions that you estimate you avoided because of this. Sustainability & Energy Management Simplified

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