Share of Renewable Energy: A Carbon Metric for Smarter Energy Procurement

Tracking the percentage of renewable energy used across your operations is now a cornerstone of carbon management especially as companies face mounting pressure from Scope 2 reduction goals, RE100 commitments, and CSRD transparency requirements.

Yet most organizations struggle to monitor energy procurement data at a granular level. Inconsistent regional data, manual collection methods, and unclear market-based vs. location-based reporting create major roadblocks to actionable insights.

The Environmental Intelligence System carbmee EIS™ directly addresses these critical pain points by providing a sophisticated and automated platform for modeling renewable energy data with unparalleled granularity, right down to the individual site or specific product level. This granular visibility empowers companies to move beyond aggregated estimates and gain a precise understanding of their renewable energy consumption across all facets of their operations. By centralizing and standardizing energy data with Custom Properties, users unlock the potential for truly smarter and more strategic energy procurement decisions. Furthermore, the platform provides real-time insights into Scope 2 emissions performance, enabling proactive management, identification of areas for improvement, and confident tracking of progress towards sustainability goals. With Custom Properties, organizations can transform the complex challenge of renewable energy monitoring into a powerful driver for emissions reduction, regulatory compliance, and enhanced corporate reputation.

To effectively reduce Scope 2 emissions and align with the Corporate Sustainability Reporting Directive (CSRD), companies should monitor several key renewable energy metrics. These metrics not only aid in accurate emissions reporting but also guide strategic decisions toward decarbonization.

1. % Renewable Electricity by Site or Product: Assessing the percentage of renewable electricity used at each site or for each product helps identify areas with higher carbon footprints. This granularity enables targeted interventions, such as investing in renewable energy sources where they will have the most impact.
2. Energy Type and Source: Distinguishing between energy types—such as solar, wind, hydro, or biomass and their sources (on-site generation, grid mix, or certified Power Purchase Agreements (PPAs) is crucial. This differentiation aids in understanding the reliability, sustainability, and emissions associated with each energy source.
3. Location-Based vs. Market-Based Emissions Factors: The Greenhouse Gas (GHG) Protocol outlines two methods for calculating Scope 2 emissions:
4. Location-Based Method: Calculates emissions based on the average emissions intensity of the local grid where the energy consumption occurs. This method reflects the physical reality of energy use. 
5. Market-Based Method: Accounts for emissions based on the specific energy purchases a company makes, including renewable energy certificates (RECs) or PPAs. This method reflects the emissions associated with the energy that companies have purposefully chosen. 

Understanding both methods is essential, as they can yield significantly different emissions figures. For instance, a company may report lower emissions under the market-based method due to renewable energy purchases, while the location-based method may reflect higher emissions based on the local grid's energy mix.

1. Residual Mix Emission Factors: In the absence of specific contractual instruments, companies should use residual mix emission factors, which represent the emissions intensity of the remaining electricity on the grid after accounting for renewable energy claims.
2. Energy Attribute Certificates (EACs) and Guarantees of Origin (GOs): Tracking the procurement and retirement of EACs or GOs ensures that renewable energy claims are substantiated. These certificates verify that a certain amount of electricity was generated from renewable sources.

According to the International Energy Agency (IEA), the power sector is a significant contributor to global CO₂ emissions, accounting for over 40% of emissions from fuel combustion. Therefore, transitioning to renewable energy sources and accurately tracking related metrics are vital steps in reducing overall emissions and achieving sustainability goals.

Managing renewable energy data presents several challenges that can impede the transition to a sustainable energy future. These challenges span technical, organizational, and regulatory domains. Below is an overview of the key obstacles:

1. Intermittency and Variability: Renewable energy sources like solar and wind are inherently intermittent, leading to fluctuations in power generation. This variability complicates grid management and requires sophisticated forecasting and balancing mechanisms.
2. Data Volume and Complexity: The proliferation of sensors and smart devices in the energy sector has led to an explosion of data. Managing this vast amount of information requires robust data storage, processing, and analytics capabilities. 
3. Integration with Existing Systems: Integrating renewable energy data with legacy systems poses significant challenges. Disparate data formats and protocols can hinder seamless communication between new and existing infrastructure.
4. Data Privacy and Security: As energy systems become more digitized, they become more vulnerable to cyber threats. Ensuring the privacy and security of energy data is paramount to protect against unauthorized access and data breaches.
5. Data Quality and Standardization: Inconsistent data quality and lack of standardization can lead to errors in analysis and decision-making. Establishing common data standards is essential for accurate and reliable energy data management.
6. Regulatory and Compliance Issues: Navigating the complex landscape of energy regulations and ensuring compliance can be challenging. Regulatory frameworks often lag behind technological advancements, creating uncertainty.

Accurate and granular monitoring of renewable energy consumption offers substantial value extending beyond mere regulatory compliance. By providing a clear and comprehensive understanding of energy sources, businesses can make more informed decisions regarding their energy procurement strategies, directly aligning these choices with ambitious sustainability objectives. This detailed insight into renewable energy usage plays a crucial role in effectively reducing Scope 2 emissions, a key component of comprehensive carbon accounting. Furthermore, it directly supports participation in prominent initiatives like RE100 and the setting and achievement of Science-Based Targets Initiatives, demonstrating a tangible commitment to climate action. Enhanced data on renewable energy also streamlines and strengthens reporting obligations under key sustainability frameworks such as the Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS) E1 energy disclosure requirements, ensuring greater transparency and accountability in environmental performance reporting.

Carbmee's platform empowers businesses to achieve granular energy modeling through the utilization of customizable data fields. These Custom Properties offer a comprehensive understanding of energy consumption and its associated emissions, going beyond basic utility data.

One key Custom Property is the percentage of renewable energy utilized, which can be specified at various levels, including individual sites, specific energy suppliers, or even down to the product level. This detailed breakdown allows for precise tracking of renewable energy adoption and its impact on the carbon footprint.

Furthermore, it enables the categorization of energy consumption by Energy Source Type, differentiating between sources such as wind, solar, hydropower, and various fossil fuels. This level of granularity is crucial for understanding the environmental impact of different energy choices and identifying opportunities for transitioning to cleaner alternatives.

To provide a complete picture of Scope 2 emissions, Carbmee supports the distinction between market-based and location-based emission factors. Market-based factors reflect the emissions associated with the specific electricity contracts and renewable energy certificates (RECs) a company has purchased, while location-based factors represent the average emissions intensity of the grid where the electricity is consumed. This dual approach ensures comprehensive and transparent reporting in accordance with recognized GHG Protocol guidelines.

For organizations actively engaging in renewable energy procurement through Power Purchase Agreements (PPAs), Carbmee offers dedicated Custom Properties to capture PPA Status and Region Grid Mix. This allows for the accurate accounting of emissions reductions associated with PPAs, considering the specific grid mix where the PPA-generated electricity is injected.

By capturing these detailed energy-related inputs through Custom Properties, Carbmee directly integrates this information into Scope 2 emissions calculations. This ensures that businesses can not only accurately measure their indirect emissions from purchased electricity but also plan future energy procurement strategies with greater confidence and precision, ultimately driving progress towards sustainability goals and informed reporting.

Carbmee’s Carbontology connects energy data with facility hierarchies and carbon models:

Say goodbye to tedious spreadsheet reconciliation with emissions reports. Now, gain structured, site-specific carbon visibility.

This enables:

• Dynamic emissions tracking through grid mix and energy sourcing updates.
• Transformation of facility-level data into product and category-level reports.
• Audit-ready dashboards providing real-time energy and emissions status.

Embark on a journey towards a more sustainable future by implementing robust Energy Carbon Intelligence practices within your organization. Our comprehensive four-step process provides a clear roadmap for integrating and leveraging energy data to drive meaningful reductions in your carbon footprint.

Step 1: Seamless Energy Data Integration

Begin by establishing a centralized system for collecting and integrating energy consumption data across all your facilities and operational regions. This crucial first step lays the foundation for accurate analysis and reporting. Ensure compatibility with various data sources and formats to create a unified view of your energy landscape. Consider implementing automated data pipelines for continuous and reliable data acquisition.

Step 2: Defining Custom Energy Properties for Enhanced Granularity

Elevate your energy analysis by defining Custom Properties that capture critical details beyond basic consumption figures. Specify the energy type (e.g., electricity, natural gas, heating oil) for each data point to enable granular tracking and emission factor application. Crucially, define the renewables percentage associated with your electricity consumption, reflecting the proportion of energy sourced from renewable sources like solar, wind, or hydro. Furthermore, integrate emissions factors specific to your energy sources and geographical locations. These custom properties are essential for accurate Scope 2 emissions calculations and informed decision-making.

Step 3: Strategically Mapping Energy Sourcing to Scope 2 Emissions Calculations

Accurately account for your indirect emissions from purchased or acquired electricity, steam, heat, and cooling (Scope 2) by meticulously mapping your energy sourcing data to the defined Custom Properties. This involves linking specific energy consumption data with the corresponding energy type, renewables percentage, and emission factors. This detailed mapping ensures that your Scope 2 calculations accurately reflect your energy procurement strategies and the environmental impact of your energy choices. Leverage this information to identify opportunities for transitioning to cleaner energy sources and reducing your indirect emissions.

Step 4: Comprehensive Performance Tracking and Reporting

Gain valuable insights into your energy performance and track progress towards your sustainability goals through comprehensive dashboards, detailed audits, and streamlined CSRD (Corporate Sustainability Reporting Directive) deliverables. Visualize key metrics, identify areas for improvement, and generate accurate reports for internal stakeholders and external reporting requirements. Regularly audit your energy data and calculations to ensure accuracy and identify potential discrepancies. Utilize the insights gained to refine your energy procurement strategies, implement energy efficiency measures, and demonstrate your commitment to environmental responsibility through transparent and reliable reporting aligned with frameworks like the CSRD.

Book a demo with Carbmee to build live Scope 2 visibility into your energy procurement strategy.

Download the Sustainability Intelligence Report 2025 to benchmark renewable energy maturity and reporting.

Your share of renewable energy is more than a metric, it’s a strategic lever for Scope 2 emissions reduction, compliance, and financial resilience. With Carbmee, you can:

• Track renewable mix by site or product
• Automate Scope 2 reporting and CSRD compliance
• Strengthen your energy and emissions strategy

Don’t let data gaps slow you down. Model energy carbon data with precision—Carbmee is ready to help.