Renewable Electricity procurement as absolute contraction strategy

Criteria
1

Good afternoon,

on behalf of our clients, can I please get clarification on accepted strategies for Financial Institutions’ to meet their Scope 1 and 2 targets using the Absolute Contraction approach - this relates to Scope 1 and 2 Criteria FI-C8. The specific question is whether procurement of Renewable Electricity is an acceptable strategy as long as the emissions reductions from using this strategy meets the institution’s absolute contraction target? To confirm, the assumption is that these institutions use market based Scope 2 emissions calculations.

Many thanks.
Gregor Theinschnack

2

Hi Gregor,

Thanks for posting. The procurement of renewable electricity is an accepted strategy towards meeting a company’s scope 1+2 target. Renewable Electricity Procurement targets (please see FI-C14) are also an acceptable alternative to scope 2 emissions reduction targets - I would just note that companies are encouraged to report both market and location-based scope 2 emissions, however, companies setting renewable electricity procurement targets that will be achieved through market-based mechanisms must report market-based scope 2 emissions.