Step 1 to make data more comparable: Ask for the same data
Background
In the 2024 GRESB Infrastructure Asset Standard, participants were allowed to report their Scope 2 greenhouse gas emissions using either the location-based or market-based method.
GRESB Infrastructure Participants manage a diverse range of assets—not only across different sectors but also ranging from single facilities to regionally distributed networks and multi-asset platforms. Strategies for decarbonization vary as well. Some focus on reducing energy consumption and improving efficiency, while others prioritize procuring cleaner energy, particularly where efficiency gains are harder to achieve.
The location-based method reflects emissions based on the average energy mix of the grid in the asset’s physical location, making it useful for understanding the impact of the asset’s energy efficiency. The market-based method, on the other hand, reflects emissions based on contractual instruments (like renewable energy certificates), thereby highlighting actions taken to support the generation of cleaner energy.
The problem
While offering flexibility in reporting methods allowed participants to choose the approach most relevant to their context, it introduced a significant downside: it made it nearly impossible to compare Scope 2 emissions across assets on a consistent basis.
Standardizing the reporting method by requiring that all asset report using a single method does not mean all comparisons will be simple or directly reflective of performance. Even location-based Scope 2 emissions figures are subject to numerous factors such as:
- Sector
- Asset’s economic size
- Operational model
- Organizational boundaries
- Regional grid emissions factor
- Energy mix used by the asset
Nonetheless, doing so provides a starting point for more consistent, credible comparisons and supports investors and stakeholders in making better-informed assessments.
GRESB’s approach in 2025
To address this challenge, the 2025 GRESB Infrastructure Standard will require all participants to report Scope 2 emissions using the location-based method. This shift lays the foundation for more consistent and meaningful comparisons across infrastructure assets.
In addition, participants will have the option to report market-based Scope 2 emissions separately. This enables assets that invest in procuring clean energy to showcase their efforts, without compromising the consistency needed for baseline benchmarking.
The endorsement by the GRESB Foundation Infrastructure Standards Committee to revise the reporting requirements was taken after an analysis of assets that only reported market-based values to GRESB and considering the ease using the location-based method, either alone or in addition to the market-based method. GRESB’s reporting guidance, including how to calculate both location-based and market-based Scope 2 emissions, is available in Appendix 9, based on the GHG Protocol’s Scope 2 Guidance.
Laying the groundwork for benchmarking
By ensuring all participants use the same method, GRESB is establishing a critical foundation for comparability. This move aligns with the broader industry momentum toward transparency and data-driven accountability in sustainability reporting. As investors increasingly seek to understand not just intent but impact, consistent reporting standards are essential. By requiring a common baseline, GRESB is helping drive a more robust and credible assessment of decarbonization progress across infrastructure assets and portfolios.