Scope 2: Two Numbers, One Story
Distinguish location-based and market-based Scope 2 reporting and explain why both matter.
Scope 2 is not one number when contracts are involved. The location-based method answers: what are emissions from the average grid where we consume electricity? The market-based method answers: what emissions are associated with the specific electricity products and instruments we bought? Both are useful, and confusing them leads to overclaiming. Why both views matter A site can lower market-based emissions with high-quality renewable instruments while still consuming electricity in a carbon-intensive region. It can also reduce location-based emissions by using less electricity or operating in a cleaner grid without changing procurement contracts. The two views reveal different levers. What…
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