ESG reporting and office solar — Scope 2, SECR, TCFD, CDP, SBTi

Scope 2 emissions under the GHG Protocol

The GHG Protocol categorises corporate emissions into three scopes. Scope 1 covers direct emissions from sources the organisation controls (boilers, vehicles, refrigerants). Scope 3 covers indirect value-chain emissions (supplier emissions, employee commuting, business travel, purchased goods and services). Scope 2 covers indirect emissions from purchased electricity, steam, heating, and cooling.

For most UK office occupiers, Scope 2 represents 60-90% of total Scope 1+2 emissions. UK grid electricity carries a carbon intensity averaging 0.21 kg CO₂e per kWh under location-based methodology — meaning a typical 1 GWh-per-year office generates around 210 tonnes of Scope 2 emissions annually.

On-site solar PV displaces grid electricity. Under both location-based and market-based Scope 2 methods, the self-consumed kWh count as zero-emission electricity. A 280 kWp office system generating 258,000 kWh/year at 78% self-consumption avoids 201,000 kWh of grid import — saving approximately 42 tonnes of CO₂e per year under location-based accounting.

Location-based vs market-based reporting

The GHG Protocol Scope 2 Guidance requires dual reporting: both location-based and market-based numbers must be disclosed.

Location-based uses the average emissions intensity of the grid in the geography where the electricity is consumed. For UK consumption in 2024, this is approximately 0.21 kg CO₂e/kWh. The number changes annually as the grid decarbonises (it was 0.39 kg CO₂e/kWh in 2018 and is projected to reach 0.05 kg CO₂e/kWh by 2035).

Market-based uses contractual instruments — REGOs, GO certificates, PPAs, on-site generation — to claim specific emissions factors per kWh purchased. A site running on a 100% renewable tariff with full REGO coverage can claim 0 kg CO₂e/kWh under market-based, regardless of the underlying grid mix.

For on-site solar, both methods credit the self-consumed generation. Location-based recognises the avoided grid kWh; market-based recognises the on-site generation as zero-emission. We provide both calculations in the commissioning documentation pack.

SECR — Streamlined Energy and Carbon Reporting

SECR is mandatory for UK quoted companies and large unquoted companies meeting two of: >250 employees, >£36m turnover, >£18m balance sheet. Annual reporting requirements cover UK energy use (kWh), Scope 1 and Scope 2 emissions, intensity ratio, prior-year comparison, methodology statement, and a narrative on energy efficiency actions taken in the year.

Solar PV qualifies as both an energy efficiency action (reducing grid electricity demand) and a Scope 2 reduction. We provide SECR-ready narrative text with each commissioning — typically 150-300 words describing the install, generation, savings, and methodology — designed to be incorporated into the customer's annual SECR statement with minimal editing.

TCFD — Task Force on Climate-related Financial Disclosures

TCFD-aligned disclosure is mandatory for UK premium-listed companies and recommended for large unlisted businesses. The framework has four pillars: Governance, Strategy, Risk Management, and Metrics & Targets. On-site solar features across all four:

• Governance: board-level capex sign-off on net zero programmes; integration with sustainability committee oversight
• Strategy: transition opportunities (cost reduction from renewable generation); physical risk mitigation (energy price volatility hedge)
• Risk Management: electricity price risk reduced by long-term self-generation; regulatory risk (MEES 2030) addressed by EPC uplift
• Metrics & Targets: Scope 2 emissions reduction; renewable energy percentage of consumption; CO₂ saved per year

CDP — Carbon Disclosure Project

CDP's Climate Change questionnaire is voluntary but near-universal among FTSE-100 companies and increasingly common in supplier requirements. Solar PV appears in three primary sections:

• C6 Emissions data: absolute Scope 1, 2, 3 numbers and intensity metrics
• C8 Energy: total energy consumption, low-carbon and renewable electricity percentages
• C9 Additional metrics: investment in low-carbon energy, energy efficiency actions

The CDP scoring methodology gives material credit for documented renewable electricity programmes including on-site generation. Customers progressing from C/D scores to A/A- typically need both renewable electricity coverage (often via solar) and target-setting (often via SBTi).

SBTi — Science Based Targets initiative

SBTi-validated targets commit companies to 1.5°C-aligned emissions reduction pathways. Approval requires (a) credible near-term targets (typically -42% absolute Scope 1+2 by 2030 from a recent baseline), (b) net-zero targets by 2050 at latest, and (c) coverage of >95% of Scope 1+2 plus >67% of Scope 3 (for net-zero standard).

On-site solar reduces Scope 2 emissions and directly contributes to near-term target delivery. For most office occupiers, hitting 2030 SBTi targets is impossible without renewable electricity coverage — and on-site solar is typically the cheapest single contribution to that coverage.

PPN 06/21 — Carbon Reduction Plan for UK government contracts

Procurement Policy Note PPN 06/21 requires bidders for UK central government contracts above £5m per annum to publish a Carbon Reduction Plan including baseline emissions, current emissions, and a commitment to net zero by 2050. On-site solar features in the "Environmental Management Measures" and "Emissions Reduction Projects" sections of the standard CRP template.

For office occupiers serving central government, devolved administrations, NHS, or local authority customers, on-site solar is increasingly a tender-response asset. We provide PPN 06/21-ready CRP input data as part of the commissioning documentation pack for customers who request it.

The Scope 2 Disclosure Pack we provide

Every commercial office solar installation we deliver includes a Scope 2 Disclosure Pack on commissioning. The pack contains:

1. Location-based and market-based Scope 2 emissions calculations with year-specific DEFRA conversion factors and citation references
2. REGO certificate handling explanation (whether REGO-certified, whether surrendered under SEG, or claimed on physical traceability)
3. Annual kWh generation evidence from system monitoring (with monthly resolution and string-level data on request)
4. SECR-ready narrative text suitable for inclusion in the annual report
5. CDP Climate Change response text pre-populated for sections C6, C8, C9
6. TCFD disclosure mapping across Governance, Strategy, Risk, Metrics
7. SBTi pathway alignment statement (where applicable)
8. PPN 06/21 Carbon Reduction Plan input data (where applicable)

The pack is updated annually on request to reflect changing DEFRA conversion factors and updated generation data, at no additional cost during the 5-year warranty period.