Scope 2 Market vs Location Based Reporting

Hi all,

I have a question regarding best practice for Scope 2 emissions reporting. I am seeing a number of companies report their Scope 2 emissions using the market-based approach as a result of buying Renewable Energy/Obligation Certificates (RECs).

My understanding was that to align with best practice GHG Protocol guidance, only companies who have purchased certified REGO contracts are able to report on their emissions using the market-based approach due to various discussion points around additionality of carbon reductions etc.

Are there any views on what best practice looks like for Scope 2 reporting? Are RECs alone enough for companies to report Scope 2 emissions using the market-based approach?


Hi Rob,

I think this passage of the Scope 2 guidance can clarify this (see below)

All the best,

Companies shall ensure that any contractual instruments used in the market-based method total meet the Scope 2 Quality Criteria specified in Table 7.1. If instruments do not meet the Criteria, then other data (listed in Table 6.3) shall be used as an alternative in the market-based method total. In this way, all companies required to report according to the market-based method will have some type of data option.