ESG Document
GHG Protocol Scope 2 Guidance
Scope 2 Guidance
Greenhouse Gas Protocol

This document serves as a comprehensive guide on the "GHG Protocol Scope 2 Guidance," an essential amendment to the GHG Protocol Corporate Standard. It is designed to assist companies in accurately measuring and reporting greenhouse gas (GHG) emissions from purchased electricity, steam, heat, and cooling, collectively known as Scope 2 emissions. By enhancing transparency, consistency, and accuracy in reporting these emissions, the guidance helps organizations manage their carbon footprint and contribute to global climate goals. The document addresses several critical questions, such as how to identify and calculate Scope 2 emissions, the methods for accounting and reporting these emissions, and the role of energy attribute certificates in influencing electricity supply changes. It also delves into the implications of different energy procurement strategies, the importance of setting reduction targets, and the complexities of reporting in various regulatory contexts. Readers will gain a thorough understanding of the principles and methods for Scope 2 accounting, the significance of dual reporting, and the criteria for ensuring the quality of contractual instruments. Practical recommendations are provided for setting and tracking GHG reduction targets, engaging energy suppliers, and enhancing corporate reputation through transparent reporting. The document also explores the market dynamics that influence the effectiveness of Renewable Energy Certificates (RECs) and other voluntary programs in driving renewable energy projects. By reading this document, stakeholders will be equipped with the knowledge to accurately report their Scope 2 emissions, understand the impact of their energy procurement decisions, and effectively communicate their environmental performance. This guidance is essential for any organization compiling a corporate GHG inventory, including companies, governments, NGOs, energy suppliers, utilities, and grid operators. It also informs government entities involved in energy regulation and consumer electricity choices. Overall, the document serves as a vital resource for organizations aiming to improve their GHG accounting practices, align with global standards, and contribute to the transition towards a low-carbon economy. It provides a clear understanding of how voluntary low-carbon energy purchases impact new low-carbon energy generation and overall GHG emissions, offering strategies and recommendations for enhancing the role of RECs in both compliance and voluntary markets.

Keyword

greenhouse gas protocol scope 2 emissions energy attribute certificates market-based method location-based method ghg emissions corporate standard dual reporting renewable energy certificates (recs) supplier-specific emission factors residual mix direct contracts energy generation facility emission factors accounting and reporting principles organizational boundaries operational boundaries direct emissions indirect emissions scope 1 emissions scope 3 emissions carbon dioxide equivalent (co2e) additionality energy procurement energy efficiency renewable energy procurement goals supplier quotas voluntary consumer programs climate change mitigation emission reduction targets stakeholder engagement transparency in reporting environmental integrity contractual instruments energy consumption emission reduction opportunities corporate ghg inventory energy supply changes energy demand management energy generation attributes ghg inventory quality reporting requirements accounting for steam heat and cooling energy-related emissions throughout the value chain ghg reduction strategies energy attribute tracking compliance instruments cap-and-trade systems regulatory policies environmental claims energy disclosure requirements supply chain emissions and emission reduction strategies.

Country

India , European Union , Ireland , United States of America , United Kingdom , New Zealand , Canada , Singapore , Australia

Comment

An amendment to the GHG Protocol Corporate Standard