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Definition

GHG Protocol Scope 2 Guidance

The GHG Protocol Scope 2 Guidance sets two methods for purchased-energy emissions: one based on local grid averages and one based on qualifying contracts, certificates, and supplier data, including when a company must report both totals.

What is the GHG Protocol Scope 2 Guidance?

The 2015 GHG Protocol Scope 2 Guidance amends the Corporate Standard. It sets two accounting methods, factor choices and contractual evidence rules for purchased electricity, steam, heat and cooling. See Scope 2 emissions for the category.

Why does the GHG Protocol Scope 2 Guidance matter to you?

A customer or assurance reviewer may test whether your total follows the GHG Protocol. A grid-only total can be incomplete when contract-based information is available. A certificate supports the market-based total only when you can show that your company owns the claim, it was retired for your use, and it covers the correct reporting period and market.

How does the GHG Protocol Scope 2 Guidance work?

Section 6.2 asks whether any operation is in a market that offers electricity certificates, specified-source contracts, supplier emissions rates, or similar information. If yes, calculate and label both the location-based and market-based totals for the whole inventory. Table 6.2 lists grid factors for the location-based method. Table 6.3 ranks market-based data by precision. It starts with certificates, contracts, and supplier rates, then lists the residual mix for unclaimed electricity and a grid-average fallback. It does not rank procurement choices. Match every MWh to one factor.

What mistakes should you avoid?

  • Blending both methods into one total.
  • Assuming any renewable tariff or certificate qualifies.
  • Applying a certificate to excess MWh or the wrong period.
  • Omitting uncovered electricity or the absence of a residual mix.

Do you always have to report both methods?

No. Report only a location-based result when none of your operations is in a market with contractual-claim systems, or when no available instruments meet the Scope 2 quality criteria. If contractual information is available in any market where you operate, section 7.1 requires both totals for the whole inventory. Sites without market-based data can use their location-based factor as the market-based fallback.

What should you send?

Send both labelled totals, energy use by site, factor sources and years, each certificate or contract's type and covered MWh, proof of retirement, checks that it covers the correct reporting period and market, the treatment of electricity left after claims, and the method used for targets.

Are the Scope 2 rules changing?

No replacement is final. GHG Protocol said on 29 July 2026 that it is still developing the revised rules and plans an integrated public consultation in Q2 2027. Use the published Scope 2 Guidance unless the request names another method.

Example

Hypothetical UAE example: Suppose a facilities-services company uses 1,800 MWh across two UAE sites in 2026. At Site A, the supplier provides a qualifying product-specific emissions rate for 1,200 MWh. Site B uses 600 MWh and has no contract-based data.

Because one operation has qualifying product-specific information, the company calculates both totals for all 1,800 MWh. The location-based calculation applies the relevant grid factors to both sites. The market-based calculation uses the eligible supplier rate for Site A's 1,200 MWh and the permitted fallback for Site B's 600 MWh. No emission factor is used because this example tests the dual-reporting trigger and method assignment.

Where it comes up

GHG Protocol test for when the market-based method and dual reporting applyScope 2 Guidance, section 6.2 and Figure 6.1, pages 43-46 (checked 2026-08-20)Official sourceGHG Protocol location-based and market-based emission-factor selectionsScope 2 Guidance, section 6.5 and Tables 6.2-6.3, pages 45-48 (checked 2026-08-20)Official sourceGHG Protocol dual-reporting, methodology-disclosure and contractual-instrument requirementsScope 2 Guidance, section 7.1, Table 7.1 and section 7.4, pages 59-63 (checked 2026-08-20)Official source

Related terms

GHG Protocol

The GHG Protocol is a suite of standards for deciding which greenhouse gas emissions belong in a company inventory, classifying them as Scope 1, 2 or 3, calculating them, and reporting the methods and boundaries used.

Scope 2 Emissions

Scope 2 emissions are the indirect greenhouse gas emissions from generating the electricity, steam, heat, and cooling your company buys and uses.

Scope 2 quality criteria

A market-based Scope 2 total reflects your electricity contracts, certificates, and supplier choices rather than only the local grid average; the Scope 2 quality criteria are eight GHG Protocol checks for that evidence.

Emission factor

An emission factor converts a measured activity, such as kilowatt-hours of electricity or litres of fuel, into greenhouse gas emissions by stating the emissions released per unit of that activity.

Energy attribute certificate (EAC)

An energy attribute certificate carries the generation attributes of a defined quantity of electricity and can support a market-based Scope 2 claim when it covers the right period and market and is retired or cancelled for one claimant.

Sources

  • GHG Protocol

    Purchased-energy boundary, dual reporting, factor selection, contractual-instrument criteria and disclosure requirements

    2026-08-20

  • GHG Protocol

    July 2026 status of the Scope 2 revision and planned integrated consultation

    2026-08-20

Last verified 2026-08-20

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GHG Protocol Scope 2 Guidance Definition | Keslio