Reduction of energy consumption

Disclosure focus

Disclosure 302-4 requires an organization to report the amount of reduction in energy consumption achieved as a direct result of conservation and efficiency initiatives, in joules or multiples.

The disclosure states the types of energy included — fuel, electricity, heating, cooling, steam, or all of these — the base year or baseline used and the rationale for selecting it, and the standards, methodologies, assumptions and calculation tools applied.

A reduction in total energy consumption does not automatically qualify. The organization must demonstrate a direct link between the reported reduction and an identified conservation or efficiency initiative. Reductions resulting from reduced production capacity or outsourcing must be excluded.

State whether each reduction was estimated, modelled or calculated using direct measurements. Where estimates or modelling were used, disclose the methods. Adjust or normalize the calculation for relevant changes in production, operating hours, occupancy, weather, product mix and organizational scope.

Reductions for different energy types can be presented separately or combined after conversion to a common joule-based unit. Prevent overlap and double counting between initiatives.

This LRA educational guidance supports disclosure preparation. For the exact requirements, always refer to the official Global Reporting Initiative source.