B3: Energy and Greenhouse Gas Emissions
Disclosure requirements for energy consumption, energy mix and Scope 1 & 2 greenhouse gas emissions.
VSME Standard Reference
The following content is extracted from the official EFRAG Voluntary Sustainability Reporting Standard for non-listed SMEs (VSME), December 2024.
View original VSME Standard (PDF)| Renewable | Non-renewable | Total | |
|---|---|---|---|
| Electricity (as reflected in utility billings) | — | — | — |
| Fuels | — | — | — |
| Total | — | — | — |
Selko Insights
Renewable vs. Non-renewable Energy Disclosure
For purchased energy (electricity, district heating, etc.), Selko Report discloses the renewable/non-renewable content primarily based on certificates of origin, if available. Secondly, and most commonly, we use the location-based energy usage mix to determine the split between renewable and non-renewable energy sources.
Nuclear Energy Classification
While nuclear energy is considered an emission-free source of energy, it is not included in the renewable portion of the disclosure.
Location-based as Default, Market-based as Optional
As per the VSME standard, the location-based method is used as the default value for the company’s Scope 2 GHG inventory. We provide our users with the option of reporting their market-based Scope 2 emissions and publishing them separately as an additional data point.
We agree with EFRAG’s decision to focus on the location-based method, as for SMEs it can be confusing to always discuss two separate values. Furthermore, the location-based approach is more reliable and, in our view, the larger potential driver for economy-wide decarbonization. However, companies that make the conscious decision to purchase certificates of origin also send a strong signal to energy providers, and thus this contribution should be part of the sustainability disclosure.
Intensity Calculation per Million Euro Turnover
The GHG intensity according to the VSME standard is divided by turnover (€). As the industry standard (for a good reason) is to divide by million € turnover, this is how we have interpreted this paragraph in Selko Report.
Optional Scope 3 Reporting
The comprehensive module includes a stipulation on Scope 3, namely that companies with significant Scope 3 emissions can report these emissions and, in case they do, they should do so according to the GHG Protocol. We provide our users with the option (and our recommendation) to report Scope 3 emissions, as it enhances their understanding of their company’s full carbon footprint.
Emissions Calculation Guides
Explore our comprehensive emissions knowledge hub to learn more about GHG Protocol methodology, calculation approaches, and best practices for each emission scope.