Scope 2: market-based emissions vs. location

Scope 2 of the carbon footprint focuses on indirect emissions from electricity consumption, but there are two approaches to calculating these emissions: market-based and location-based.

The market-based method takes into account a company’s specific energy choices, while the location-based method assesses emissions according to the average emissions intensity in the region of consumption.
Each method has its advantages and disadvantages, and the choice depends on the company’s objectives and resources.