ESG SDDS Wiring-Guide

Actual location-based scope 2 emissions, also known as indirect emissions, are GHG emissions from purchased electricity, heat, steam or cooling consumed by the assets, but generated elsewhere. The term 'actual' refers to scope 2 emissions that are not estimated. Location-based method quantifies scope 2 emissions based on average energy generation emission factors for defined locations, including local, subnational, or national boundaries (ref: GHG Protocol, “Scope 2 Guidance”, Glossary, 2015). Reference the methodology used to calculate GHG emissions in the comment box.
 

To calculate location-based Scope 2 emissions, multiply actual energy consumption by the relevant location-based grid emission factor.
Include only actual consumption data for purchased electricity, district heating, district cooling, or steam. If only estimated data is available, report under ESG3.3.7.
Recognised emission factors may be taken from credible sources, such as:

Intergovernmental Panel on Climate Change (IPCC) Assessment Reports

International Energy Agency (IEA) datasets

UK Government GHG Conversion Factors (DEFRA)

GHG Protocol – Emission factors and calculation tools

INREV does not prescribe a single source. Investment managers should apply a credible dataset consistently across the portfolio and disclose the chosen source.

This location-based method is required as the minimum approach for Scope 2 reporting under the GHG Protocol Scope 2 Guidance.

Note 1: If the market-based method is also used to report Scope 2 emissions, this should be reported separately under ESG3.3.2.1.