Scope 2 emissions—those associated with purchased electricity, heat, or steam—are a critical component of corporate carbon reporting. As global regulatory frameworks become stricter, companies must adopt credible, transparent, and efficient methods to track and report these emissions. Energy Attribute Certificates (EACs) offer a robust solution for organisations seeking to simplify Scope 2 reporting while fulfilling their sustainability commitments.

The Growing Importance of Scope 2 Reporting

Governments and regulatory bodies worldwide are demanding greater transparency in emissions reporting. The Corporate Sustainability Reporting Directive (CSRD) in the EU and Greenhouse Gas (GHG) Protocol guidelines require organisations to accurately disclose indirect emissions from electricity consumption. Failure to comply can lead to financial penalties, reputational damage, and stakeholder distrust.

Companies that proactively manage Scope 2 reporting not only mitigate compliance risks but also enhance investor confidence and strengthen their competitive position. Reliable, independently verified EACs ensure that reported reductions in carbon footprints are legitimate and traceable.

What Are Energy Attribute Certificates (EACs)?

EACs are tradable instruments that certify that 1 MWh of electricity has been generated from a renewable source and injected into the grid. These certificates enable companies to claim renewable energy usage, even if they are unable to procure green power directly. Common EAC systems include:

• Renewable Energy Certificates (RECs) – North America
• Guarantees of Origin (GOs) – Europe
• International Renewable Energy Certificates (I-RECs) – Global

By purchasing and retiring EACs, organisations can legally and credibly match their electricity consumption with renewable energy generation, thereby reducing their reported Scope 2 emissions.

How AFS Energy Simplifies Scope 2 Reporting

1. Regulatory Alignment and Standardisation

AFS Energy provides fully verified and traceable EAC solutions that align with major sustainability frameworks, such as:

• The GHG Protocol Scope 2 Guidance – Recognises EACs as a compliant mechanism for reducing reported Scope 2 emissions.
• RE100 Initiative – Requires companies to use EACs to track renewable energy consumption.
• CSRD & European Taxonomy – Incorporate EACs into sustainability reporting requirements.

2. Seamless Carbon Accounting & Transparency

AFS Energy’s Client Portal offers real-time tracking of EACs, ensuring precise carbon footprint calculations and full traceability. Our EACs include unique serial numbers, timestamps, and details of the energy source, enabling companies to maintain transparency with investors and regulators.

3. Cost-Effective Compliance Without Infrastructure Overhaul

Directly sourcing renewable energy through on-site solar or Power Purchase Agreements (PPAs) can be costly and operationally complex. AFS Energy’s EAC solutions provide a scalable, flexible, and cost-efficient alternative for organisations unable to install renewable energy infrastructure.

4. Enhancing Brand Reputation and Stakeholder Confidence

Companies utilising AFS Energy’s EAC solutions demonstrate a clear commitment to Scope 2 decarbonisation, attracting:

• ESG-focused investors
• Sustainability-conscious customers
• Regulatory support and incentives

For example, a multinational corporation using AFS Energy’s EAC solutions to report 100% renewable energy consumption has strengthened its ESG ratings and compliance scorecards, positioning itself as a sustainability leader in its industry.

Best Practices for Using EACs in Scope 2 Reporting

1. Ensure Proper Matching: Purchase EACs equivalent to your electricity consumption to accurately report emissions reductions.
2. Retire Certificates Transparently: Retired EACs must be recorded in verified registries to prevent double counting.
3. Align with Global Standards: Select EACs certified by recognised authorities such as Green-e, AIB (Association of Issuing Bodies), or the I-REC Standard.
4. Integrate EACs into Sustainability Reports: Clearly document EAC usage in CSRD reports, CDP (Carbon Disclosure Project) submissions, and ESG disclosures.

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Turning Compliance into Opportunity

Energy Attribute Certificates (EACs) are more than just a compliance tool—they are a strategic asset that simplifies Scope 2 reporting while strengthening sustainability credentials. By adopting verified, high-quality EACs from AFS Energy, organisations can confidently align with regulatory frameworks, build investor trust, and demonstrate climate leadership.

As energy regulations continue to evolve, companies that proactively integrate AFS Energy’s EAC solutions into their carbon accounting strategy will be best positioned to achieve net-zero ambitions while maintaining regulatory compliance.