Overview
When reporting Scope 2 greenhouse gas (GHG) emissions, the GHG Protocol requires companies to disclose using two methods:
Location-based method: Uses the average emissions intensity of the electricity grid where consumption occurs.
Market-based method: Reflects the emissions from the specific electricity your organisation has purchased (e.g., through supplier contracts or renewable energy certificates).
Both methods are important because they provide different insights:
Location-based shows your emissions relative to the grid you operate in.
Market-based reflects your purchasing choices, such as buying renewable energy.
Sumday allows you to enter and manage both methods side by side, and toggle between them across dashboards and reports.
Entering Scope 2 Market-based vs Location-based Records
Go to: Assessments → Open the assessment → Accounting → Scope 2 → Purchased Electricity
Here you’ll see your electricity meters or purchased electricity records.
Create a separate row for each calculation method
Each electricity item entry (e.g., Office electricity) can only hold one calculation method at a time.
To record both methods, create two separate rows:
One for Location-based
One for Market-based
Use a unique name for each (e.g., Office A – Location-based and Office A – Market-based).
Entering Market-based values
Market-based data is currently entered as a direct kg CO₂e input.
Steps:
Select Market-based from the Method drop-down menu.
If this option does not display, go to Assessment Settings → Emission Factor Databases and enable Market-based for Scope 2.
Enter your total monthly or annual kg CO₂e emissions.
If you’ve purchased 100% renewable energy, enter zero.
These values flow through to your totals and reports when they are set to a Market-based calculation method.
Entering Location-based values
Location-based values are entered using electricity consumption (kWh).
Steps:
Enter the kWh of power on a monthly or annual basis (you can enter one annual sum in a single month if preferred).
Select the location of the site from the Location drop-down menu.
This applies the relevant grid emission factor to your Scope 2 entries (based on the emission factor databases applied in your assessment settings).
Save your records
Ensure each entry has a unique name.
Once saved, you’ll see both Location-based and Market-based records listed under Scope 2 in your reports.
Scope 2 Reporting Method in Assessment Settings
The Scope 2 total displayed in assessment summaries is controlled by the method selected in Assessment Settings.
If Market-based is selected, your totals will reflect market-based CO₂e.
If Location-based is selected, your totals will reflect location-based CO₂e.
Viewing Market-based vs Location-based in Reports
Go to Settings → Default Scope 2 reporting method.
Toggle between Market-based or Location-based.
This setting controls how Scope 2 data is displayed across reports and dashboards in Sumday.
In reports such as the Carbon General Ledger or Carbon Trial Balance, both methods are always listed:
Scope 2 – Location-based
Scope 2 – Market-based
This ensures you can:
Report in line with the GHG Protocol (disclosing both).
Compare grid averages with your contractual electricity purchases.
Best Practices
Always maintain two records (one location-based, one market-based) for each electricity meter.
Use clear naming conventions (e.g., Office – Location vs Office – Market) to keep records organised.
Regularly check your dashboard/reporting toggle to ensure you’re viewing the method you intend.