6 October 2026 · ClimateTab team

Location-based and market-based Scope 2, explained

The GHG Protocol asks companies to report Scope 2 two ways. What is the difference, and what do you need for each?

The GHG Protocol Scope 2 Guidance asks companies to report purchased electricity emissions using two methods side by side.

Location-based

Uses the average emission factor of the grid where the electricity is consumed. It reflects the physical reality of the grid you are connected to.

Market-based

Uses the emission factors from the contractual instruments you hold, such as energy attribute certificates, power purchase agreements or supplier-specific factors. Electricity not covered by an instrument uses a residual-mix factor.

Reporting both in ClimateTab

Enter your meter data once. ClimateTab calculates both results and lets you switch between them with a click, so your disclosures stay consistent.

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