Keep location-based and market-based Scope 2 results separate

Keep two clearly labelled Scope 2 results through the calculation workbook, management review and reporting export whenever dual reporting applies. Combining them loses the meaning of both methods. Procurement changes can affect one result while electricity consumption stays the same.

This guide focuses on purchased electricity. Scope 2 also covers purchased or acquired steam, heat and cooling; a complete inventory needs the applicable sources within its agreed boundary.

Determine which results are required

• Location-based: uses the average emissions intensity of the grids where electricity is consumed.

• Market-based: uses emission factors associated with qualifying contractual information, with other data used according to the method’s hierarchy.

Under the 2015 guidance, where dual reporting applies, both totals cover the entire corporate inventory boundary. Operations without applicable market-based data remain included using the prescribed fallback. Where no operations are in markets with qualifying contractual claims systems, only the location-based result is required. GHG Protocol Scope 2 Guidance, sections 1.5 and 6.2

Check the markets where the business operates, rather than asking only whether it bought renewable electricity. GHG Protocol’s FAQ explains that accessible product- or supplier-specific data can trigger dual reporting even without a renewable purchase. Contractual information can relate to different generation sources. GHG Protocol dual-reporting FAQ

Retain the basis for each calculation

For market-based reporting, establish what eligible product- or supplier-specific information is available. For consumption without that information, use an appropriate residual-mix factor where available. Grid-average data is a fallback when the relevant contractual and residual-mix data are unavailable. Record why that fallback is used. GHG Protocol market-based data FAQ

A supplier’s number needs supporting methodology. Supplier-specific factors must satisfy the relevant Scope 2 Quality Criteria, including criterion 6; merely receiving a number does not establish its suitability. GHG Protocol supplier-data FAQ

Similarly, a “renewable” label does not automatically justify zero emissions: combustion-based renewable generation can have reportable emissions. Check the generation basis and qualifying evidence. GHG Protocol renewable-energy factor FAQ

Keep the supporting records alongside the calculation: Nitium’s factor-selection guide and renewable-electricity evidence guide cover those preparation steps.

Carry the same consumption through two calculations

Consider a fictional site that purchases and consumes 100 MWh during one twelve-month period. Dual reporting applies. All factors below are invented solely to illustrate the arithmetic, expressed in tonnes of carbon dioxide equivalent per MWh (tCO2e/MWh). They are not published factors for any country, grid, supplier or technology.

Assume the factors cover the appropriate generation emissions and gases. For this example only, assume the contractual data meets all applicable Scope 2 Quality Criteria, the quantities are correctly allocated, and the residual-mix factor is appropriate for the remaining consumption.

Location-based calculation: 100 MWh × 0.40 tCO2e/MWh = 40 tCO2e.

Market-based calculation: split the same 100 MWh into three mutually exclusive quantities:

• 60 MWh assigned to qualifying contractual data A: 60 × 0.10 = 6 tCO2e.

• 20 MWh assigned to qualifying supplier-product data B: 20 × 0.30 = 6 tCO2e.

• 20 MWh without qualifying contractual data, using the assumed residual mix: 20 × 0.70 = 14 tCO2e.

The quantity check is 60 + 20 + 20 = 100 MWh. The market-based result is 6 + 6 + 14 = 26 tCO2e. Each method accounts for the same 100 MWh once. No consumption disappears because contractual information is available.

Label the outputs where they will be used

Present “Scope 2, location-based: 40 tCO2e” and “Scope 2, market-based: 26 tCO2e” separately for this fictional example. Do not add them into 66 tCO2e, average them into 33 tCO2e or combine parts of the two calculations into a third total.

The 14 tCO2e difference is a difference between accounting-method results for the same period. It does not establish 14 tonnes of real-world emissions avoided. The guidance treats avoided-emissions assessment separately and cautions against describing the two totals as gross and net. GHG Protocol Scope 2 Guidance, sections 6.9 and 7.4.2

Before exporting a chart or figure, check that:

1. Both method labels, the reporting period and the inventory boundary remain visible.

2. The consumption total reconciles to each calculation, without gaps or overlapping allocations.

3. Factor references and fallback decisions remain traceable from the workbook.

4. The narrative distinguishes consumption changes, method differences and any separately supported impact claim.

These are practical review checks, not a complete disclosure checklist.

Check the edition before the next reporting cycle

This guide uses the 2015 Scope 2 Guidance. As checked on 13 October 2026, revisions remain in development. GHG Protocol’s July 2026 update plans a consolidated GHG Protocol–ISO consultation in Q2 2027 and publication in Q4 2028. Proposed changes should not be presented as final requirements. GHG Protocol standard-development update

Prepare a traceable inventory workbook

Nitium’s carbon inventory support covers inventory preparation, calculation workbooks, data-source and assumptions records, and information gaps within an agreed scope. Discuss your inventory needs with your reporting boundary and a non-confidential description of the calculation issue.

Sources checked 13 October 2026. The example is fictional and simplified. This guide is not a complete inventory, legal opinion, certification or independent assurance conclusion.