Should I include electricity providers in my spend data?
Electricity emissions are measured by energy use and emission factors, not spend, to ensure accuracy and avoid double-counting. Trace automatically excludes this spend data from your measurement.
Electricity providers are typically excluded from spend-based carbon accounting because electricity emissions are calculated using activity data (kWh), rather than financial spend. Spend-based methods are unreliable for electricity because prices vary for economic or market reasons and do not correlate with the carbon intensity of the electricity consumed.
Including electricity spend in carbon calculations could also result in double-counting, as electricity emissions are already accounted for in Scope 2 under the GHG Protocol. Scope 2 emissions should be reported using either location-based emission factors (reflecting the average grid intensity in a region) or market-based factors (reflecting the carbon profile of the electricity purchased, such as from renewable energy contracts).
For these reasons, electricity providers appear in ESG or procurement spend reports for financial purposes but are excluded from spend-based Scope 3 Category 1 calculations in carbon inventories, ensuring emissions are calculated accurately and consistently.
Trace now supports the automatic exclusion of spend data relating to electricity to make mapping easier for you.
How can I add my Activity Data to the Trace Platform?
- On the Trace App, under Step 5: Add your activity data, you may input your electricity consumption directly to this tab.