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Definition

Scope 2 quality criteria Definition

Scope 2 quality criteria are eight GHG Protocol checks for the contracts, certificates, supplier rates, direct electricity purchases, and residual-mix information behind your market-based Scope 2 total.

What are Scope 2 quality criteria?

Scope 2 quality criteria test the contracts, certificates, and supplier information behind a market-based Scope 2 total. They do not calculate emissions or prove that specified electricity physically reached your site. For the two accounting methods, see Scope 2 emissions.

GHG Protocol Scope 2 Guidance Table 7.1 sets eight checks. Here, an instrument means a contract, certificate, or supplier rate that carries information about the electricity you bought. If it fails a relevant check, do not use its emission rate for that electricity. Use the next available source listed in Table 6.3 instead.

Why do Scope 2 quality criteria matter to you?

A customer, reporting platform, or assurance provider may ask you to prove a renewable-electricity or supplier-specific claim. Keep the contract, certificate identifiers, retirement record, generation period, and market check. CDP's 2026 technical note says Question 7.7 lets you describe how much of your market-based total does not meet the criteria. It also tells you to disclose when you used a location-based factor because no residual mix or more precise market-based factor was available. A residual mix is the factor for unclaimed electricity.

How do Scope 2 quality criteria work?

Check each instrument against the criteria that apply:

  • 1. Emission rate: it conveys the direct GHG emission rate attribute for each unit of electricity.
  • 2. Unique claim: no other instrument carries that rate claim for the same generation.
  • 3. Retirement: it is tracked and redeemed, retired, or cancelled for your company.
  • 4. Vintage: its issue and redemption dates are as close as possible to the consumption period.
  • 5. Market boundary: it comes from the same recognised market as the electricity-consuming operation. This is the Scope 2 market boundary. Follow the certificate issuer's or regulator's trading and retirement boundary.
  • 6. Supplier factor: a utility or supplier factor covers delivered electricity and adjusts for attributes sold to other customers.
  • 7. Direct generation: attributes from a direct contract or on-site generation transfer only to your company, with no duplicate end-user instrument.
  • 8. Residual mix: an adjusted factor covers unclaimed electricity, or you disclose that no such factor is available.

What mistakes should you avoid?

  • Accepting a renewable label or invoice without proof of the attribute, quantity, owner, and retirement.
  • Using a foreign certificate because the grids connect, without checking whether the schemes recognise one market.
  • Matching megawatt-hours but ignoring the generation year and reporting period.
  • Applying a certificate rate to uncovered electricity or hiding the absence of a residual mix.

What records should you keep for each instrument?

Keep the contract, certificate type and serial numbers, megawatt-hours, generation dates, issuing body, ownership chain, retirement date, named beneficiary, and the market rule you applied. For a supplier factor, keep the calculation and treatment of sold certificates. Record the residual-mix source or state that none was available.

What happens if an instrument fails a criterion?

Do not use its emission rate for the affected electricity. Move to the next eligible source in Table 6.3, such as an eligible supplier factor or residual mix. If only a grid-average factor is available, use it in the market-based total for that quantity and disclose the fallback.

Are the Scope 2 quality criteria changing?

GHG Protocol reported on 29 July 2026 that it is still developing the revised Scope 2 rules. The consultation material is not a final standard. Until a replacement is issued, use the published Scope 2 Guidance for this check, record its version, and review the final replacement when issued.

Worked example

Hypothetical Malaysia example: Suppose an aluminium extruder in Malaysia uses 12,000 MWh of electricity in calendar 2026 and holds energy attribute certificates for 10,000 MWh. For an 8,000 MWh block, its file shows the emission-rate attribute, unique certificate numbers, retirement to the company, 2026 generation dates, and issuer confirmation that the generator and factory fall within the same recognised market. Criteria 1 to 5 pass. The purchase does not use a supplier-specific factor or direct-generation contract, so criteria 6 and 7 do not apply. An adjusted residual-mix source is recorded for uncovered electricity, meeting criterion 8.

The other 2,000 MWh certificate block has no proof that its source is in the same market as the Malaysian factory, so it fails criterion 5. Eligible certificate coverage is 8,000 MWh / 12,000 MWh = 66.7%. The remaining 4,000 MWh cannot use the certificate rate and needs an eligible residual-mix or fallback factor. No emission factor is used in this eligibility test.

Where you'll meet it

Related terms

Sources

  • GHG Protocol

    Table 7.1's eight criteria, section 7.5 guidance, market boundaries, fallback data, and residual-mix disclosure

    2026-08-19

  • CDP

    Version 12.0 sections 4.3 and 4.3.2, and Question 7.7 treatment of criteria failures and residual-mix gaps

    2026-08-19

  • GHG Protocol

    July 2026 confirmation that the Scope 2 standard revision process is continuing

    2026-08-19

Last verified 2026-08-19

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