What is the location-based method?

The location-based method is a commonly used approach for accounting for Scope 2 emissions in greenhouse gas (GHG) reporting. Scope 2 emissions are indirect emissions associated with the generation of purchased or consumed electricity, heat, steam, or cooling. In the location-based method, organizations calculate these emissions based on average grid emissions factors for the geographical region where they operate.

To apply the location-based method, organizations typically use emission factors provided by relevant authorities or industry sources for the region in which they are located. These factors represent the average carbon intensity of electricity generation in that area. Organizations then use these factors to estimate the emissions associated with their electricity consumption.

The location-based method provides a simplified and standardized way to account for Scope 2 emissions, making it easier for organizations to report their carbon footprint. However, it may not capture the specific emissions associated with the electricity they consume if they purchase power from renewable or low-carbon sources or if their energy mix differs significantly from the regional average.

kWh of electricity used x Local grid emissions factor = Location-based Scope 2 CO2e GHG Emissions