COINDU | Sustainability Report 2023

SUSTAINABILITY REPORT 2023 Energy indirect (Scope 2) GHG emissions Scope 2 accounts for GHG emissions from the generation of pur- chased electricity2 consumed by the company. Purchased electricity is defined as electricity that is purchased or otherwise brought into the organizational boundary of the company. Scope 2 emissions physi- cally occur at the facility where electricity is generated. COINDU accounts for scope 2 emissions based on two methods: • Market-based method: calculates emissions based on the electric- ity that organizations have chosen to purchase, often spelled out in contracts or instruments like Renewable Energy Certificates (RECs). • Location-based method: A location-based method reflects the average emissions intensity of grids on which energy consump- tion occurs (using mostly grid-average emission factor data). In Portugal, since COINDU acquires guarantees of origin that ensure that the electricity consumed comes from renewable sources, emis- sions using the market-based method are zero. GRI 305-2 97