UK SRS S2 Scope 2: Location-Based Emissions, Contracts and Renewable Electricity Claims

UK SRS S2 makes the location-based figure the required core and contractual information an explanatory layer.

At a glance

1. The required core: location-based Scope 2

Paragraph 29(a)(v) requires location-based Scope 2 emissions. The location-based method reflects the average emissions intensity of grids or other geographic energy systems where consumption occurs. It links metered purchased electricity, steam, heat or cooling to a location-representative factor. Renewable procurement does not remove this required presentation.

2. The explanatory layer: contractual instruments

UK SRS S2 also requires information about contractual instruments where necessary to inform users’ understanding. Paragraph B31 describes contractual instruments broadly, including contracts for energy purchases and unbundled energy-attribute claims. The Standard permits market-based Scope 2 information as part of this explanation where it is useful.

3. Build the location-based calculation first

Reconcile purchased electricity, steam, heat and cooling by site and meter.

Confirm reporting period, units and treatment of estimated meter reads.

Select location-representative grid or energy-system factors and record edition and geography.

Apply GWP and conversion controls consistently.

Aggregate by reporting entity and prepare the required disaggregation between the accounting group and other investees.

Perform variance analysis and independent recalculation.

4. Then build the contractual-instrument register

For each instrument, record the consuming entity and site, counterparty, contract or certificate ID, instrument type, technology, generation period or vintage, market boundary, volume, ownership, transfer rights, cancellation or retirement evidence, supplier factor and any residual-mix treatment. Link the instrument to the exact electricity consumption population.

The control sequence should be traceable from consumption to the public claim.

5. RECs and I-REC(E)s

Energy attribute certificates can support a market-based calculation or a renewable-electricity statement where the scheme, ownership and claim rules are satisfied. The certificate file should show unique identifiers, technology, generation location, vintage, quantity, account holder, transfer and retirement. The entity should confirm that the same attributes are not retained by the generator, resold by an intermediary or claimed by another buyer.

6. PPAs and supplier products

A PPA can contain energy, price and attribute components. The entity must identify which rights are transferred and who owns the energy attributes. A financial or virtual PPA may have different physical-delivery and attribute characteristics from an onsite or sleeved arrangement. Supplier products similarly require evidence of the supplier factor, underlying attributes and residual mix—not merely a marketing label.

7. Prevent double counting

Double counting can arise when the same MWh or attribute is claimed by multiple parties, when certificates overlap with a supplier product, when a generator retains a claim after transferring attributes, or when a buyer claims both a PPA and separate certificates for the same volume. Contract, registry, procurement and GHG teams should reconcile a unique instrument population to the consumption population and public claims.

8. Renewable electricity claims versus Scope 2 numbers

A statement such as “100% renewable electricity purchased” is not the same as “zero Scope 2 emissions”. The location-based figure reflects grid emissions. A market-based figure reflects qualifying contractual instruments and factors. A procurement claim can describe contractual coverage. The report should state which claim is being made, its boundary and period, and the evidence and limitations.

9. Hypothetical multi-country example

10. Illustrative disclosure

The figures are illustrative only. A real disclosure needs the instrument rules, factors, residual mix, market boundaries, ownership and retirement evidence.

11. Common mistakes

Omitting location-based Scope 2 because a market-based figure is available.

Calling all PPAs “physical renewable electricity” without examining delivery and attribute rights.

Using certificates without retirement or cancellation evidence.

Matching a certificate to consumption in the wrong market or period.

Claiming the same volume through a supplier product and separate certificate.

Using a supplier-specific factor without understanding residual-mix and attribute treatment.

Netting renewable attributes against Scope 1 or Scope 3.

Making “zero emissions” or “100% renewable” claims without boundary and limitation wording.

12. Scope 2 evidence checklist

Site and meter population reconciled.

Location-based factors current and geographically appropriate.

Required location-based tCO2e calculated and reviewed.

Contractual instruments linked to exact consumption populations.

PPA and supplier-product attribute ownership confirmed.

Certificate serials, vintages, markets and retirement recorded.

Residual mix and supplier factors documented where relevant.

Overlapping instruments and claims tested.

Market-based information clearly separated from location-based reporting.

Renewable claims approved by GHG, procurement, legal and reporting owners.

Sources, status and limitation

UK SRS S2 establishes the required location-based presentation and relevant contractual information. The GHG Protocol Scope 2 Guidance provides implementation methodology and quality criteria. Scheme-specific rules, contract law and claim requirements should be checked for each instrument and market.

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