Sustainability now: Inside the GHG Protocol’s Scope 2 changes

Dec 4, 2025

Colin Powell, a PwC Canada partner and Technical Net Zero Leader, dives into the GHG Protocol’s major proposed updates to Scope 2 Reporting. They discuss the critical balance between location-based and market-based reporting, highlighting new emission factor hierarchies and the intriguing shift towards hourly matching for energy consumption. Colin emphasizes the importance of accessible emission factors and the implications for renewable energy credits. He also shares how companies can engage in shaping these standards and prepares listeners for the upcoming changes.

Ask episode

AI Snips

Chapters

Transcript

Episode notes

INSIGHT

Purpose Redefined For Clearer Reporting

The exposure draft keeps location-based and market-based reporting but redefines their purposes to tie kilowatt-hours to actual generation and consumption.
Colin Powell says the changes aim to increase clarity and align reporting with actual market behavior.

ADVICE

Frame Comments By Decision Criteria

Use the decision-making criteria in the exposure draft as the framework for your comment submissions.
Colin Powell advises framing responses around feasibility, accuracy, comparability, and scientific integrity.

INSIGHT

Emission Factor Hierarchy Pushes Hourly Data

The new emission factor hierarchy ranks geography, time, and production vs consumption to push for more granular reporting.
Colin Powell notes hourly matching is the target for the most accurate reporting.

Get the Snipd Podcast app to discover more snips from this episode

Get the app

A video of this podcast is available on YouTube, Spotify, or PwC’s website at viewpoint.pwc.com

The GHG Protocol has released its long-awaited proposed updates to the Scope 2 Guidance. In this episode, we highlight the key changes in the exposure draft, including proposed revisions to location-based and market-based reporting, hourly matching, emission factor hierarchies, and more. We also explore what these developments could mean for companies and how stakeholders can participate in the revision process.

In this episode, we discuss:

2:49 – Redefining the purpose for location-based and market-based reporting
5:33 – The importance of the decision-making criteria
6:56 – New emission factor hierarchy for location-based reporting
14:30 – Shift toward hourly matching in the market-based method
21:53 – Deliverability criteria and implications for renewable energy credits
26:19 – Residual mix and fossil-only defaults for unclaimed energy
32:45 – How companies can share feedback and next steps for the Scope 2 guidance

For more on the GHG Protocol’s exposure draft, see our publication, GHG Protocol announces Scope 2 Public Consultation, which was updated to indicate that the public consultation deadline was extended to January 31, 2026.

Check out our previous episodes for more on the GHG Protocol and GHG reporting:

Looking for the latest developments in sustainability reporting? Follow this podcast on your favorite podcast app and subscribe to our weekly newsletter to stay in the loop for the latest thought leadership on sustainability standards.

About our guest

Colin Powell is PwC Canada’s Technical Net Zero Leader. His work focuses on GHG quantification, life cycle assessment, target setting, and decarbonization strategies. He has helped companies measure over 1 billion tonnes of emissions and previously worked as a consultant supporting global clients in decarbonization. Colin sits on the GHG Protocol’s Scope 3 Working Group, helping shape updates to global standards. He is also a Professional Engineer (Ontario) with a PhD in wastewater treatment modeling.

About our host

Heather Hornis the PwC National Office Sustainability and Thought Leader, responsible for developing our communications strategy and conveying firm positions on accounting, financial reporting, and sustainability matters. In addition, she is part of PwC’s global sustainability leadership team, developing interpretive guidance and consulting with companies as they transition from voluntary to mandatory sustainability reporting.

Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.com

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.