Issue link: https://resources.tangoanalytics.com/i/1508312
The GHG protocol scope II guidance outlines quality criteria for your contractual agreements in order to make the Market-based method globally consistent and capable of functioning to produce accurate results as the guidance is designed. The Scope II quality criteria represent the minimum features necessary for those contractual instruments to function together as a complete market-based emissions allocation system for consumers. It exists as a set of requirements that an organization must meet in order to be used in your scope II emissions accounting If you do have purchases that did not meet the Scope II quality criteria, the reporting company can report this separately in a sustainability report, and outline which criteria the purchase did not meet, even though the purchases cannot be used within the main Scope II calculations. This can provide transparency to your stakeholders and encourages the reporting entity to adhere to the Scope II guidance. Other Scope II Calculation Considerations Scope II Quality Criteria: Hierarchy of Emission Factors The GHG protocol Scope II guidance often discusses the "hierarchy of emissions factors", which is their way of saying that it is preferable you use higher precision emissions factors wherever possible and applicable. So, if you have contracts for electricity purchases that outline an emission factor for your consumption, and these contractual instruments meet the scope II quality criteria, you can't just skip over that and use the eGRID Emissions Factors. However, if you have no contractual instruments for use, and you're based in the US, the best option despite its lower precision would be the eGRID factors. So choosing the emissions factors for Scope II market-based emissions calculations will vary across every organization. There is no one size fits all. It will also potentially vary across each building in your portfolio. If you have one building that is covered by RECs you would use the emissions factor outlined on your RECs, which is likely 0. If you have electricity contracts for another region of your buildings, you could use the emissions factors outlined on your contracts for the set of buildings that the contract applies to. If you are involved in a green power program that says you have 0 emissions associated with the program or outlines some other emissions rate, you would use that for the applicable buildings. If you have no contractual agreements for any of your buildings then you would assume the residual mix, or in the absence of a published residual mix for your region, you would use the location-based emissions factors. Sustainability & Energy Management Simplified