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CALCULATING SCOPE II EMISSIONS: While the emissions calculations for Scope 2 do involve complex math, the emissions are far easier to measure than Scope 3 emissions since the information is more readily available through utility bills, whereas, with Scope 3, the data is owned and controlled by third parties that a company can only have varying degrees of influence over. The hardest part of accounting for scope 2 is typically the time- intensive data acquisition, coverage, and ensuring overall accuracy. In 2015, the GHG Protocol updated its guidance on how scope 2 emissions should be measured, introducing two different methodologies: the market-based approach and the location-based (grid-based) approach. This update means that most reporting companies now have to report their scope 2 emissions in either one of these two ways or both, also known as "dual reporting." The recommendation by the GHG protocol is that companies employ dual reporting of both methods side by side when accounting for scope 2. As the newer methodology, market-based emissions accounting should be approached by companies with the appropriate level of discernment, being sure to consult experts and the published guidance accordingly. Steps to Get Started: 01 - Familiarize your organization with all scope 2 guidance provided by the GHG Protocol, as well as understanding the differences between Market-Based and Location Based methodologies. 02 - In order to calculate your emissions, you will need to have accurate and complete usage/ consumption data, which is actually your starting point. The data for Scope 2 is based on metered electricity consumption (utility invoices) and supplier-specific emission factors. 03 - Establish which calculation tools you will be using, and where the data will be housed. It is best practice to find a solution beyond manual Excel entry, especially if you are a larger organization with complicated emissions data. Calculation tools are available via the GHG protocol site and on third-party cloud-based data management platforms designed for carbon accounting, such as WatchWire. 04 - Choose emission factors based on criteria such as regional guidelines, reporting periods, and emission sources. Hire an expert to consult if you are unsure where to start with this. 05 - Establish baseline years and existing carbon footprint to measure progress against, and implement goals. 06 - Transparency is key: this industry is ever-growing and changing, just be transparent in your reporting mechanisms, and if you need to report something differently this year from the last, be transparent. Many companies add footnotes in their reports to indicate changes or updates year to year. Sustainability & Energy Management Simplified

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