ESG SDDS Wiring-Guide

Actual market-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. Market-based method quantifies scope 2 emissions based on GHG emissions emitted by the generators from which the reporting entity contractually purchases electricity bundled with instruments, or unbundled instruments on their own (ref: GHG Protocol, “Scope 2 Guidance”, Glossary, 2015). Reference the methodology used to calculate GHG emissions in the comment box.
 

"To calculate market-based Scope 2 emissions, multiply actual energy consumption by the relevant emission factor provided through contractual instruments or supplier data.

Contractual instruments include (ref: GHG Protocol):
• Power Purchase Agreements (PPAs);
• Guarantees of Origin (GOs);
• Renewable Energy Certificates (RECs);
• Supplier-specific emission data;
• Residual mix emission factors (used when no contractual or supplier-specific data is available for the relevant market).

Include only actual consumption data for purchased electricity, district heating, district cooling, or steam. If only estimated data is available, report under ESG3.3.7.1.

For consistency, apply the same principles on emission factor selection and disclosure as outlined in ESG3.3 (Scope 1) and ESG3.3.2 (Scope 2, location-based).

Note 1: INREV does not prescribe a single source. Investment managers should apply a credible dataset consistently across the portfolio and disclose the chosen source."