The ESRS E1 - Climate Change, developed by EFRAG and adopted by Delegated Regulation (EU) 2023\/2772, sets out the reporting requirements for an entity's greenhouse gas emissions, divided into three categories: Scope 1, Scope 2 and Scope 3. Scope 2 includes indirect emissions that are associated with energy purchased and used by the organisation - in particular electricity, steam, heat or cooling - but which are produced by external sources outside the direct control of the entity.<\/p>\n
In accordance with paragraph 43 of ESRS E1 (Annex I of the Delegated Regulation), Scope 2 covers indirect GHG emissions resulting from the generation of energy consumed by the entity but produced by third-party installations. These emissions are required to be reported both on a location-based basis, which reflects the average energy mix of the grid, and on a market-based basis, which takes into account actual contracted sources (e.g. certificates of origin, PPAs).<\/p>\n
Relevant sources include: grid electricity consumption, centrally delivered heat or cooling energy, industrial steam purchased from third parties.<\/p>\n
ESRS E1 requires detailed reporting of these emissions, in both methodological approaches, in order to provide a realistic and complete picture of the climate impact of energy consumption.<\/p>\n
According to the disclosure requirement DR E1-6, entities must disclose:<\/p>\n
the total gross Scope 2 emissions in tonnes of CO\u2082 equivalent (tCO\u2082e), separately for location-based and market-based methodologies<\/p>\n
a description of the data sources used for the estimates and the corresponding emission factors for each method<\/p>\n
mentioning any green energy purchases, including its certification<\/p>\n
the calculation methodology used, including the level of detail and degree of accuracy.<\/p>\n
It is also important to specify whether the data are based on primary sources (invoices, meters) or estimates.<\/p>\n
Realising a robust Scope 2 emissions inventory involves several steps:<\/p>\n
Collection of energy consumption data - internal data on the quantities of electricity, heat, steam or cooling purchased, obtained from invoices, smart meters or contracts, is used<\/p>\n
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Selection of calculation method - location-based (with national\/regional energy mix) and market-based (taking into account specific purchased sources) methods are applied<\/p>\n
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Apply emission factors - emission factors are taken from recognised sources (e.g. European Environment Agency, GHG Protocol)<\/p>\n
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Calculation and documentation of results - calculate gross emissions on both methods and document significant differences between them.<\/p>\n
In the sustainability report, Scope 2 emissions must be presented separately for each method, with explanations on: variations from previous years, changes in the organisation's energy structure, correlations between the energy mix used and the organisation's own climate strategy. If the entity purchases green energy or holds certificates of origin, this should be mentioned separately.<\/p>\n