Location-based method (Scope 2)
ESG & GovernanceA way of calculating Scope 2 emissions using the average emission factor of the grid where the electricity is used.
The location-based method reflects the physical reality of the grid. In India, where coal still produces most electricity, it usually gives higher Scope 2 figures than the market-based method for companies that buy renewable energy certificates. The SBTi's 2026 standard uses location-based reporting for Scope 2 targets. Analysts should read both figures where a company discloses them.
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