What are market-based emissions
The GHG Protocol's Scope 2 standards for carbon emission accounting require that companies "dual report" scope 2 emissions using two methods: the location-based and the market-based method.
Location-based - Emissions calculated based on average electricity generated in a given geographic location
Market-based - Emissions calculated based on electricity purchasing decisions, accounting for any renewable energy procurement
What is Altruistiq's Methodology?
Simultaneous location-based and market-based accounting
Emissions calculated in the Altruistiq platform are automatically calculated using both a location-based and a market-based method.
Emission Factor Assignment Logic
Market-based and location-based emissions calculations vary due to the emission factor that is applied to the Activity Data. The emission factor selection logic used by Altruistiq's Calculation Engine is therefore different for market-based and location-based emissions. Currently, this logic is only different for the "Purchased Electricity" Activity.
Location-based Logic
The Calculation Engine applies the appropriate location-based emission factor based on:
Geographic Location of the Facility where the Electricity is Purchased, matching on the most granular location possible
For example, for electricity purchased in the USA where the eGRID region of the Facility is known, the eGRID region Emission Factor will be preferred over the country average Emission Factor
Time period when Electricity was purchased
Market-based Logic
The Calculation Engine applies the appropriate market-based emission factor based on:
Geographic Location of the Facility where the Electricity is Purchased, matching on the most granular location possible
For example, for electricity purchased in the USA where the eGRID region of the Facility is known, the eGRID region Emission Factor will be preferred over the country average Emission Factor
Time period when Electricity was purchased
The Renewable status of the purchased Electricity (TRUE/FALSE)
The Supplier or Tariff Specific Fuel Mix, if a match is available in Altruistiq's Emission Factor Database
Important: The Renewable status is prioritised over the Supplier/Tariff information, meaning if Renewable Status is provided the Supplier/Tariff information will not be considered.
Emission Factor Hierarchy
Altruistiq follows the GHG Protocol's hierarchy for both location-based and market-based emission factor assignment.
Location-based
Emission Factors | Indicative Examples |
Regional or subnational emission factors
Average emission factors representing all electricity production occurring in a defined grid distribution region that approximates a geographically precise energy distribution and use area. Emission factors should reflect net physical energy imports/exports across the grid boundary. | • eGRID total output emission rates (USA) • BEIS annual grid average emission factor (UK) |
National production emission factors
Average emission factors representing all electricity production information from geographic boundaries that are not necessarily related to dispatch region, such as state or national borders. No adjustment for physical energy imports or exports, not representative of energy consumption area. | • IEA national electricity emission factors |
Market-based
Emission Factors | Indicative Examples |
Energy attribute certificates or equivalent instruments (unbundled, bundled with electricity, conveyed in a contract for electricity, or delivered by a utility) | • Renewable Energy Certificates (U.S., Canada, Australia and others) • Generator Declarations (U.K.) for fuel mix disclosure • Guarantees of Origin (EU) • Electricity contracts (e.g. PPAs) that also convey RECs or GOs • Any other certificate instruments meeting the Scope 2 |
Contracts for electricity, such as power purchase agreements (PPAs) and contracts from specified sources, where electricity attribute certificates do not exist or are not required for a usage claim | • In the U.S., contracts for electricity from specified nonrenewable sources like coal in regions other than NEPOOL and PJM • Contracts that convey attributes to the entity consuming the power where certificates do not exist • Contracts for power that are silent on attributes, but where attributes are not otherwise tracked or claimed |
Supplier/Utility emission rates, such as standard product offer or a different product (e.g. a renewable energy product or tariff), and that are disclosed (preferably publicly) according to best available information | • Emission rate allocated and disclosed to retail electricity users, representing the entire delivered energy product (not only the supplier's owned assets) • Green energy tariffs • Voluntary renewable electricity program or product |
Residual mix (subnational or national) that uses energy production data and factors out voluntary purchases | • AIB RE-DISS for EU countries • Green-e for USA |
Other grid-average emission factors (subnational or national) | • IEA national electricity emission factors |
Note: Altruistiq does not validate renewable energy claims or evidence — responsibility for ensuring coverage and accuracy lies with the user.