What is market-based and location-based emissions?
According to the GHG Protocol, companies are required to report Scope 2 emissions according to a location-based method and/or a market-based method.
A location-based method reflects the average emissions intensity of grids on which energy consumption occurs (using mostly grid-average emission factor data). Whereas a market-based method reflects emissions from electricity that companies have purposefully chosen and derives emission factors from contractual instruments, which include any type of contract between two parties for the sale and purchase of energy bundled with attributes about the energy generation, or for unbundled attribute claims.
On the Hub, companies may choose the method they find most relevant to track and compare year-on-year emissions.