WRI unveils new guidance for reporting emissions
The World Resources Institute (WRI) has released new guidance to help companies measure emissions from purchased electricity, reports online sustainability hub 2Degrees.
This is the first major update to the GHG Protocol Corporate Accounting and Reporting Standard and, says the WRI, responds to the rapid growth of renewable energy and other major shifts in the electricity market.
“The new guidance aims to provide a consistent, transparent way for companies to show how different types of electricity purchases.”
Generation of electricity, steam, heating, and cooling accounts for 40% of global greenhouse gas emissions. When companies purchase this electricity for their facilities, they report the emissions in the scope 2 category.
Accurately accounting for these emissions is essential for companies to manage and reduce them but, says the WRI, recent changes in global energy markets have made this accounting increasingly complicated.
The new guidance aims to provide a consistent, transparent way for companies to show how different types of electricity purchases, such as power purchase agreements, on-site versus off-site projects, and renewable energy certificates, count toward their emissions targets, and will inform corporate decisions on what kind of energy should power their business.
Mary Sotos, associate at the WRI and lead author of the guidance said: “Currently, companies consume half of all electricity produced so any solution for reducing global emissions has to address the electricity sector. This guidance will let companies know exactly how their energy choices count toward their emissions goals. By providing rigorous reporting methods, the Guidance gives a clear incentive for companies to demand low-carbon electricity.”
The Scope 2 Guidance was developed in consultation with over 200 representatives from companies, electric utilities, government agencies, academics, industry associations and civil society groups in 23 countries and includes case studies of 12 companies that have already used the new guidance, including Mars, Facebook, Google, and EDF