What is Location-based Method?
A Scope 2 calculation method that reflects the average emissions intensity of the local electricity grid. This method uses grid average emission factors and shows what emissions would be if no renewable energy was purchased.
Why it matters
The location-based method provides a consistent benchmark that reflects the actual grid mix powering your operations. Many reporting frameworks require it alongside the market-based method, giving stakeholders both perspectives on your energy impact.
Example
A warehouse in Birmingham uses the UK grid average emission factor of 0.207 kg CO₂e per kWh. Its 500,000 kWh annual consumption translates to 103.5 tCO₂e under the location-based method.
Related terms
Market-based Method
A Scope 2 calculation method that reflects emissions based on the electricity an organisation has chosen to purchase, such as renewable energy tariffs. This method uses supplier-specific emission factors and renewable energy certificates.
Scope 2 Emissions
Indirect greenhouse gas emissions from the generation of purchased energy consumed by an organisation. This includes electricity, steam, heating, and cooling purchased from utility providers. Scope 2 can be calculated using location-based or market-based methods.
Put your knowledge into practice
Start measuring your carbon footprint with EcoHedge. Connect your accounting software and get your first carbon report in hours.