The guide to calculating Scope 2
The emissions from the energy you buy with the location-based and market-based methods, the role of guarantees of origin and the residual mix, with a complete example.
How to calculate Scope 2, in short
Scope 2 covers the emissions generated to produce the energy your company buys: electricity from the grid, heat, steam and cooling. The GHG Protocol Scope 2 Guidance asks you to calculate it with two methods and report both.
The location-based method multiplies the kWh drawn from the grid by the national grid average factor. The market-based method uses the factor from your contracts: energy covered by guarantees of origin cancelled in your name counts as zero, and the rest is calculated with the residual mix, usually higher than the grid average.
What's in the guide
What Scope 2 is
Purchased electricity, heat, steam and cooling: what is included and what is not.
Location-based and market-based
The two methods compared, guarantees of origin and the residual mix.
A complete example
The same consumption worth 30, 54 or 18 tCO₂e depending on the method and the contracts.
Special cases
Solar panels, energy fed into the grid, rented offices, charging points and district heating.
Document checklist
Bills for every POD, contracts, cancelled GOs and solar panel data.
What is changing
The revision of the Scope 2 Guidance and what VSME disclosure B3 asks for.
Frequently asked questions
What does Scope 2 include?
The emissions generated to produce the energy the company buys and consumes: electricity drawn from the grid, purchased heat and steam, for example from district heating, and cooling bought from third parties.
What is the difference between location-based and market-based?
Location-based uses the national grid average factor and only goes down if you consume less. Market-based uses the factor from your contracts or, failing that, the residual mix, and also goes down if you buy renewable energy certified with guarantees of origin.
Do I have to report both methods?
Yes. The GHG Protocol Scope 2 Guidance asks you to report both. VSME, in disclosure B3, asks for location-based, but market-based lets you show banks and clients the effect of guarantees of origin.
Do solar panels for self-consumption reduce Scope 2?
Yes, because the energy you produce and consume is not purchased and does not generate Scope 2: in the calculation you only count the kWh drawn from the grid. The kWh fed into the grid, however, are not subtracted.