Renewable electricity procurement has been relatively straightforward over the last ten years. Buy enough certificates, join a green tariff, or rely on an annual matching claim, and you could credibly say your operations were powered by Zero Carbon renewable electricity.
That era is coming to an end, with changes to how businesses calculate carbon on the horizon. Here’s how to adapt your energy strategy to stay credible, compliant and competitive.
How is Scope 2 reporting changing?
Under the Greenhouse Gas (GHG) Protocol, carbon emissions are categorised into three Scopes: Scope 1 (direct emissions), Scope 2 (purchased electricity), and Scope 3 (value-chain emissions).
Under current Scope 2 guidance, last updated in 2015, businesses on an annual, REGO-backed renewable tariff can label all their electricity usage as Zero Carbon – regardless of when and where that associated power was generated. This approach fails to reflect the reality of the power system, leaving gaps in credibility and transparency, as well as tangible support to help the grid become greener.
The next generation of Scope 2 guidance from the GHG Protocol is expected to demand far closer alignment between energy consumption and renewable generation. Companies will need to show how the electricity they use is matched with low-carbon power in real time. Expected around 2027, these changes aim to improve transparency, strengthen corporate claims, and guide investment to new renewable generation assets that support how businesses are really using power.
What is hourly matched energy and how is it different?
Hourly matching marks a significant shift from traditional annual accounting. Instead of using broad averages, it shows how a company’s electricity use aligns with renewable generation on an hourly basis – whether through on-site solar, a Corporate Power Purchase Agreement (CPPA), or a deep-green hourly-matched energy tariff. This will mean your reported electricity emissions reflect actual grid conditions and help support a greener energy grid overall.
For large energy users, hourly matching provides an auditable measure of your carbon impact, with detailed data to support your reporting and sustainability claims. It also gives businesses confidence in their Zero Carbon credentials, providing a competitive edge even before tighter Scope 2 rules take effect.
How can businesses prepare now?
It’s easy to treat Scope 2 reform as a future problem. But procurement decisions made now can often lock in structures for years. Businesses that move early have more choice and greater credibility when expectations tighten, while those who don’t may find themselves retrofitting solutions onto contracts that were never designed for this level of scrutiny.
Here are the questions you should be asking your energy supplier now:
- How closely does renewable generation align with your business’ energy demand, hour by hour?
- Can your supplier provide transparent, auditable data to prove it?
- Where are the assets located relative to your site?
- Can contracts evolve as reporting standards change?
Scope 2 reforms are more than an accounting update. They signal a shift toward real-time transparency and accountability. Companies that adapt by choosing genuinely renewable, time-matched energy will not only meet future reporting requirements but can turn compliance into a strategic advantage. Early adoption demonstrates credible environmental stewardship, and it supports the transition to a low-carbon energy system for all.