Per the Greenhouse Gas (GHG) Protocol’s latest Scope 2 reporting guidance, companies with any operations in markets providing product or supplier-specific data in the form of contractual instruments shall report Scope 2 emissions in two ways and label each result according to the method: one based on the location-based method and one based on the market-based method. This is also termed “dual reporting.”
Why use both? To summarize the GHG Protocol’s guidance, both calculation methods are essential. Location-based factors help organizations gauge their impact within their physical locations. At the same time, the market-based method accounts for the complexities and ramifications of purchasing decisions on the power mix. With the continued rise of renewable energy as a critical decarbonization strategy, the GHG Protocol’s requirements ensure consistency, standardization, and comparability of companies’ GHG reports and disclosures, helping organizations, regulators, and industry stakeholders understand the whole picture.
