E - Environmental (Carbon, Energy, Resources, Climate) 5 min read

What is Location-Based Method? Definition and Context

Credibility Check & Framework Comparison

To ensure absolute regulatory accuracy and reliability, we verify definitions across leading international frameworks before presenting our synthesized SME context.

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GHG Protocol

"A method to quantify Scope 2 greenhouse gas emissions based on average energy generation emission intensity of the grid where consumption occurs."
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EFRAG / ESRS E1

"The grid-average emissions reporting method that must be disclosed alongside the market-based method for Scope 2 energy emissions."
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EcoVadis

"The baseline method for evaluating Scope 2 carbon footprints using regional electricity grid emission factors."

ExecutESG Consolidated Definition

Location-Based Method

The location-based method is a calculation protocol under the GHG Protocol Corporate Standard that determines Scope 2 emissions from purchased electricity based on average emission factors of the local, regional, or national power grid where the consumption takes place.

Characteristics:

  • Uses statistical grid mix emission data (e.g., national average grid factors provided by DEFRA, AIB, or EPA).
  • Does not take into account specific retail contracts or green tariffs purchased by the company.
  • Provides a baseline reflecting local grid infrastructure dependencies.

SME Relevance & B2B Inbound Action:

Calculating location-based emissions is required for formal audit trails. Use ExecutESG's carbon registry to automatically match your utility bills with regional grid coefficients and maintain compliance with EFRAG standards.

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