Perfecting scope 2 reporting – how to get easy access to the data you need

Businesses across the globe are recognising the vital importance of sustainability. It’s no longer enough to simply focus on profitability; companies now need to prioritise their environmental impact. To achieve this, a crucial tool in the sustainability arsenal is scope 2 reporting. This practice not only helps in measuring and reducing greenhouse gas emissions but also paints a vivid picture of a company’s commitment to a greener future. 

A mandatory, but beneficial practice

Governments worldwide are taking steps to combat climate change. Regulations are being enacted to hold businesses accountable for their carbon emissions, and non-compliance can result in hefty fines and damage to a company’s reputation.

But that doesn’t mean it’s not without its benefits for a reporting company! Disclosing your indirect emissions resulting from purchased electricity, heat, or steam can yield some pretty sweet bonuses for you, like increased efficiency and improved stakeholder relations: 

Increased efficiency: Identifying your indirect emissions sources can help you become more energy-efficient, ultimately saving you money while you’re reducing your environmental impact.

Improved stakeholder relationships: Scope 2 reporting shows your stakeholders, customers, and investors that you are willing to be held accountable for your carbon footprint. Consumers are increasingly seeking eco-conscious brands, and investors are favouring businesses that prioritise sustainability. So while you’re adhering to laws and regulations, you’re also improving your stakeholder relationships and getting a competitive edge. 

Location-based VS. Market-based scope 2 reporting?

When it comes to calculating Scope 2 emissions, there are two distinct methodologies: the location-based approach and the market-based approach. The location-based approach relies on the emissions intensity of the electricity grid in the geographical area where a company operates. In simpler terms, it assesses emissions based on the mix of energy sources used within a specific region, regardless of the choices made by the company. 

On the other hand, the market-based approach takes into account the environmental attributes of the energy sources a company directly purchases or contracts. This method offers a more tailored view of emissions, reflecting the company’s specific decisions and efforts to use cleaner energy. The choice between these two approaches can significantly impact reported emissions, so companies often opt for dual reporting, providing a comprehensive view of their Scope 2 emissions profile.

But regardless of what methodology for scope 2 reporting you are using, the main challenge stays the same; getting the data.

Challenges in scope 2 reporting

Like any worthwhile journey, scope 2 reporting is not without its share of hurdles and roadblocks. Just as a seasoned traveller knows that the most scenic routes can have the occasional uphill climb, Sustainability Managers knows that the same is true for scope 2 reporting. 

Gathering and processing the necessary data for calculating emissions is often the biggest challenge in any part of scope reporting. These issues include: 

Data collection: Getting accurate data on energy consumption can be complex, especially for businesses with multiple facilities or diverse energy sources.

Data quality: Ensuring the accuracy and reliability of data is essential for reliable and meaningful scope 2 reporting. Inaccurate data can lead to misleading emissions calculations.

Data management: Storing, organising, and managing the data can be a logistical nightmare without the right tools.

But nothing good comes easy, right? Well…

Metry will make it easy for you

Metry provides a solution that streamlines the entire process of data collection for you. We help you access energy data from various sources, from utility bills to your own smart meters (including landlord/tenant data). We validate the quality of the collected data, have full traceability of every single value that is stored in our database. Our system always logs exactly what data source each value comes from, and when it was received. This way we can ensure that you fulfil any audit requirements.

When it comes to managing the data, we offer the freedom to build structures that fits your reporting needs. And of course, the option to export the data from Metry to any other management or reporting software you choose. 

Love it or hate it, scope 2 reporting is a nonnegotiable part of running a sustainable business. So why make it harder than it has to be? 

Talk to us if you want to know more about how we can help you automate your scope 2 data collection.