> ## Documentation Index
> Fetch the complete documentation index at: https://documentation.kodelabs.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Emissions accounting

> How EnerG tracks GHG scopes, location- and market-based methods, RECs, offsets, and emission factors

EnerG converts energy and activity data into greenhouse gas emissions using scopes, methods, and factors. This page explains the accounting model behind the emissions dashboards.

To manage emissions data, see the portfolio [Emissions overview](/products/energ/analytics/portfolio-emissions-overview) and its related pages. For field schemas, see [Emissions reference](/products/energ/reference/emissions-reference).

## GHG scopes

EnerG organizes emissions by the greenhouse gas scopes your portfolio tracks.

| Scope   | Source                           | EnerG coverage                                                                        |
| ------- | -------------------------------- | ------------------------------------------------------------------------------------- |
| Scope 1 | Direct combustion and losses     | On-site fuels, fleet fuel, fugitive refrigerant loss                                  |
| Scope 2 | Purchased energy                 | Electricity and district energy, reported two ways                                    |
| Scope 3 | Indirect upstream and downstream | T\&D losses, waste, water and wastewater, leased-asset energy where meters support it |

Scope 1 combines stationary combustion with [fleet emissions](/products/energ/analytics/portfolio-emissions-fleet-emissions) and [fugitive emissions](/products/energ/analytics/portfolio-emissions-fugitive-emissions).

EnerG focuses on building and portfolio utilities. It does not cover every possible Scope 3 category, such as purchased goods, business travel, or investments. Your reporting boundaries and disclosure choices remain your responsibility.

## Location-based and market-based Scope 2

EnerG reports Scope 2 emissions two ways. These totals are never mixed into one number.

| Method         | Basis                                                                         |
| -------------- | ----------------------------------------------------------------------------- |
| Location-based | The average grid emission factor for the building's region                    |
| Market-based   | Contractual instruments such as RECs, guarantees of origin, and green tariffs |

Report either or both when your program requires it. Market-based totals fall as you allocate renewable instruments. Location-based totals track the grid.

<Frame caption="Building emissions overview with Scope 2 market-based and location-based cards">
  <img src="https://mintcdn.com/kodelabs/2xuyqDwhBYJ11inY/images/energ/energ-building-emissions-overview.png?fit=max&auto=format&n=2xuyqDwhBYJ11inY&q=85&s=26b815ab2616c1dbf6b85efcf5068560" alt="Emissions Overview showing Total Energy, Scope 2 Market-based, Scope 2 Location-based, a GHG Emissions by Scope chart, and a metrics table" width="1024" height="469" data-path="images/energ/energ-building-emissions-overview.png" />
</Frame>

## RECs and covered load

A <Tooltip tip="Renewable energy certificate: a tradable attribute representing renewable generation that can be allocated and retired.">renewable energy certificate (REC)</Tooltip> represents renewable generation you can allocate to buildings and retire against emissions.

For market-based electricity, EnerG splits use into:

* **Covered** — matched to your renewable contract or certificates (often zero emissions per kWh)
* **Uncovered** — the remainder, which still uses a grid or residual-mix factor

Example: a building uses 1,000 megawatt-hours in a year. RECs cover 800 megawatt-hours. The uncovered factor is 0.35 kg CO₂e per kWh.

| Method         | Result                         |
| -------------- | ------------------------------ |
| Location-based | 1,000 × 0.35 = 350 tonnes CO₂e |
| Market-based   | 200 × 0.35 = 70 tonnes CO₂e    |

You record instruments as [volume contracts](/products/energ/analytics/portfolio-emissions-contracts), then allocate and retire volume by reporting year.

* **Residual emissions** are emissions before offsets.
* **REC avoided** reductions come from retired certificates.
* **Onsite avoided** reductions come from on-site generation such as solar.

## Emission factors

An **emission factor** converts activity into carbon: Emissions = Usage × Emission factor.

Each factor carries a methodology, GHG scope, service type, and geography or grid. Only active factors apply to reports. Manage them in the [emission factors library](/products/energ/analytics/portfolio-emissions-emission-factors).

### Where default factors come from

EnerG starts with published datasets from recognized authorities. Your organization can keep these defaults or set custom factors.

| What you measure                     | Typical default sources                                       |
| ------------------------------------ | ------------------------------------------------------------- |
| Electricity (grid average)           | EPA eGRID (US), national inventory data, IEA, UK DEFRA        |
| Electricity (market-based uncovered) | European residual mix (AIB) in the EU; grid average elsewhere |
| Natural gas and other fuels          | EPA Emission Factors Hub, UK DEFRA                            |
| Refrigerants                         | IPCC GWP values and regional tables where applicable          |
| Waste                                | EPA WARM and national waste inventories                       |
| Water and wastewater                 | Regional water-energy models; DEFRA as a fallback             |
| T\&D losses                          | National or regional loss rates combined with the grid factor |

Factors are versioned by year so historical reports stay aligned with the standards for that period.

### Which factor applies

When EnerG calculates emissions for a reading, it picks a factor in this order:

1. **Building-specific factor** — assigned for that building and utility type
2. **Portfolio default** — your organization standard for all sites
3. **System default** — the official library for that region and year

In the app you may see labels such as Default (official library), Custom (portfolio), or Override (building).

You can create custom factors for electricity, fuels, refrigerants, waste, and T\&D. Reporting years can be locked so factor edits do not silently rewrite history.

For fugitive events, EnerG multiplies refrigerant quantity lost by the refrigerant's <Tooltip tip="Global warming potential: the multiplier that converts a refrigerant quantity into CO2 equivalent.">global warming potential (GWP)</Tooltip> to produce CO₂e.

## Compliance-oriented exports

EnerG produces structured exports through [Report Builder](/products/energ/finance/reporting) for consumption, cost, GHG, and completeness. Use those outputs as the system of record for disclosure prep.

EnerG does not complete third-party sustainability filings end to end. You export metrics from EnerG, then finish entry and submission in your disclosure tools.

## Next steps

<CardGroup cols={2}>
  <Card title="Portfolio emissions overview" icon="cloud" href="/products/energ/analytics/portfolio-emissions-overview" arrow={true} cta="Open">
    Review scope totals, offsets, and the metrics table.
  </Card>

  <Card title="Emission factors library" icon="book-open" href="/products/energ/analytics/portfolio-emissions-emission-factors" arrow={true} cta="Open">
    Manage factors that drive carbon calculations.
  </Card>

  <Card title="Volume contracts" icon="file-text" href="/products/energ/analytics/portfolio-emissions-contracts" arrow={true} cta="Open">
    Create, allocate, and retire REC volume.
  </Card>

  <Card title="Emissions reference" icon="table" href="/products/energ/reference/emissions-reference" arrow={true} cta="Look up">
    Look up scope columns, factor sources, and record fields.
  </Card>
</CardGroup>
