Location-Based vs Market-Based Scope 2: How Big Is the Gap for UK REITs?
26 October 2026 · 19 min read · Mian Khubaib Jim
Across 15 UK REITs market based Scope 2 is a median 6.7% of location based. What fills the rest and which figure UK SRS S2 and SBTi now test.
Location based vs market based Scope 2 is the gap between what the grid emitted for a landlord and what its electricity contracts say it emitted. This paper answers one question. How big is that gap for UK real estate investment trusts (REITs) and what is left in the market based figure? The answer comes from the latest reports of 15 UK REITs that publish both figures. Market based Scope 2 is a median of 6.7% of location based. Across the sample 84% of location based Scope 2 disappears under the market based method.
Across 15 UK REITs market based Scope 2 is a median 6.7% of location based. See how Sustainify AI traces location based vs market based Scope 2 to the entries and factor set behind each figure.
Summary of findings
The findings in six numbers
Number | What it shows |
|---|---|
15 | UK REITs that publish both Scope 2 figures in the latest report read |
6.7% | Median market based Scope 2 as a share of location based |
5 of 15 | REITs whose market based figure is below 1% of location based |
84% | Share of the sample location based total that disappears under the market based method (59246 of 70223 tCO2e) |
5.3% | Hammerson UK market based as a share of UK location based against 44.5% for the whole group |
26% | How much the 2026 electricity factor narrows the gap for a fully REGO backed portfolio with no change in supply |
Source. Company reports listed in Table 1 and DESNZ 2026 methodology paper [1]. Calculations by this paper.
The gap is close to total for UK electricity. Five REITs report market based Scope 2 below 1% of location based and three of those report zero. Where a larger residual remains the companies point to purchased heat or assets outside the UK or contracts that are not REGO backed. Hammerson shows the effect. Its UK market based figure was 125 tCO2e against 2378 location based. France and Ireland added 1718 tCO2e [2].
Few REITs say what priced the electricity their certificates did not cover. Safestore names a UK residual mix factor of 0.36532 kgCO2e/kWh [3]. British Land names the 2024 Great Britain residual mix of 0.42076 [4]. Both are more than twice the UK grid factor of 0.17700 in the 2025 set [1].
The two figures are also tested differently. UK Sustainability Reporting Standard S2 (UK SRS S2) requires location based Scope 2 and treats market based as optional [5]. The European Sustainability Reporting Standards (ESRS) ask for both [6]. The Science Based Targets initiative (SBTi) Net Zero Standard version 2.0 sets target ambition on location based Scope 2 [7].
Why location based vs market based Scope 2 matters for REITs
Most REITs in this sample buy landlord electricity on renewable tariffs backed by Renewable Energy Guarantees of Origin (REGOs). The market based figure then falls close to zero and is easy to read as finished work. The location based figure is the one the UK standard tests. UK SRS S2 requires an entity to disclose location based Scope 2 and information about any contractual instruments (paragraph 29(a)(v)). It says an entity might disclose market based Scope 2 (paragraph B31) [5]. The Financial Conduct Authority (FCA) applies UK SRS S2 to listed commercial companies on a comply or explain basis for accounting periods beginning on or after 1 January 2027. Closed ended investment funds are outside the rules [8].
A sustainability lead who reports a market based zero and a finance director who signs a location based figure many times larger need one explanation. So does an investor comparing two REITs that both report zero. The question this paper answers is how large the gap is and what fills the part that is not zero.
Definitions
Location based Scope 2 prices electricity at the average emission factor of the grid. Market based Scope 2 prices it by the contracts and certificates the company holds. The GHG Protocol requires companies with operations in markets that offer contractual instruments to report Scope 2 by both methods [9]. The full guidance calls this dual reporting [10].
A REGO is a certificate for one megawatt hour of renewable output. Under the market based method certified supply is normally reported at zero. Residual mix is the emission factor of electricity left after all claimed certificates are removed. The GHG Protocol ranks it above the grid average for consumers without specified purchases or supplier data [10].
ISSB is the International Sustainability Standards Board whose IFRS S2 standard UK SRS S2 is based on. CSRD is the EU Corporate Sustainability Reporting Directive which uses double materiality and reports through ESRS. SFDR is the EU Sustainable Finance Disclosure Regulation which asks funds to report principal adverse impacts. Each term in this paragraph is defined in the Sustainify AI glossary.
Method
The latest annual report or sustainability report or assurance statement of 19 companies was read between 5 and 9 October 2026. All 19 are or recently were UK listed REITs. Fifteen publish both Scope 2 figures for a recent year. Eleven of those are for the latest reporting year which is calendar 2025 or a financial year ending between August 2025 and June 2026. Four are for the year before because the latest figures sit in spreadsheets or in pages that could not be read. Each is labelled.
Four were left out of the statistics. Primary Health Properties reports Scope 2 for its offices only [11]. Custodian Property Income REIT publishes no market based figure [12]. No 2025 report was found for Empiric Student Property which Unite acquired in January 2026 [13]. British Land publishes its Scope 2 tonnes in a spreadsheet that could not be read. Picton is included on its last published figures. Its acquisition by LondonMetric and Schroder Real Estate Investment Trust completed on 10 September 2026 [14].
For each REIT the market based figure was divided by the location based figure. The median and the aggregate were then calculated. The REITs differ in boundary and period so the statistics describe this sample and not the sector.
Findings
Finding 1. Market based Scope 2 is a median of 6.7% of location based
Across the 15 REITs the market based figure runs from zero to 47.9% of location based. Ten of the 15 are below 10%. The aggregate gap is 59246 tCO2e or 84% of the location based total.
Table 1. Location based and market based Scope 2 in 15 UK REITs
REIT | Period | Location based (tCO2e) | Market based (tCO2e) | Market based as share of location based |
|---|---|---|---|---|
Great Portland Estates [15] | Year to March 2026 | 1833 | 0 | 0.0% |
Big Yellow [16] | Year to March 2026 | 1443.1 | 0.0 | 0.0% |
Picton [17] | 2024 | 1626 | 0 | 0.0% |
Derwent London [18] | 2025 | 2340 | 4 | 0.2% |
Safestore [3] | Year to August 2025 | 2641 | 7 | 0.3% |
LondonMetric [19] | 2025 | 267 | 6 | 2.2% |
Workspace [20] | Year to March 2026 | 5213 | 168 | 3.2% |
Grainger [21] | Year to September 2025 | 1248 | 83 | 6.7% |
Tritax Big Box [22] | 2025 | 461.9 | 40.3 | 8.7% |
Unite [23] | 2025 | 25687 | 2409 | 9.4% |
Shaftesbury Capital [24] | 2025 | 802.9 | 114.3 | 14.2% |
Landsec [25] | 2024/25 | 17938 | 4133 | 23.0% |
Supermarket Income REIT [26] | Year to June 2026 | 173 | 59 | 34.1% |
Hammerson [2] | 2024 | 4146 | 1844 | 44.5% |
SEGRO [27] | 2024 | 4403 | 2109 | 47.9% |
Total | All 15 REITs | 70223 | 10977 | 15.6% |
Source. Company reports and assurance statements as cited. Picton and Landsec and Hammerson and SEGRO are for the year before the latest. Median of the 15 ratios is 6.7%. Median of the eleven latest year ratios is 3.2%. Totals are rounded.
Unite and Landsec carry 62% of the location based total. Unite includes purchased heat in Scope 2 [28] and Landsec includes district heating and cooling [29]. The aggregate is therefore shaped by heat as well as by electricity.
Finding 2. What remains is heat or overseas supply or contracts not yet REGO backed
Where a REIT explains its market based residual the cause is purchased heat or supply outside the UK or contracts that have not yet moved to a REGO backed tariff.
Table 2. What sits in the market based residual
REIT | Market based (tCO2e) | Explanation in the report |
|---|---|---|
Workspace [20] | 168 | Purchased heat. Market based electricity is zero |
Unite [23] [28] | 2409 | Scope 2 covers purchased electricity and purchased heat. 99.5% of electricity renewable. Split not given |
Landsec [25] [29] | 4133 | Scope 2 includes district heating and cooling. Offices account for 3393 tCO2e and other assets for 740 |
Shaftesbury Capital [24] | 114.3 | Vacant properties stayed on non REGO contracts and several suppliers raised their emission factors |
Hammerson [2] | 1844 | UK 125. France 798. Ireland 920 |
SEGRO [27] | 2109 | Not explained. The statement covers all geographies and gives no country split |
Tritax Big Box [22] | 40.3 | Legacy energy contracts that were not REGO backed came with an acquired portfolio |
Safestore [3] | 7 | UK 6 and Europe 0.2 |
Grainger [21] [30] | 83 | Scope 2 includes district heating. 97% of electricity on a renewable tariff |
Supermarket Income REIT [26] | 59 | Not explained. Renewable electricity is a commitment for landlord controlled communal areas at managed sites |
Source. Company reports as cited. Hammerson country figures are from its 2024 report on a proportionally consolidated basis. Rounding explains the 1 tCO2e difference to the group total.
Hammerson makes the point most clearly. Its UK market based figure is 5.3% of UK location based. In France the two figures are identical at 798 tCO2e [2]. The gap therefore depends on how electricity is bought in each country as well as on the landlord.
Finding 3. Few REITs say what priced the electricity certificates did not cover
The GHG Protocol expects electricity without certificates to be priced at a residual mix where one is available. Where none is available the grid average is used and the absence is disclosed [10]. The residual mix is much higher than the grid average because claimed renewable output has been removed from it.
Table 3. Factor stated for electricity without certificates
Approach stated | REITs | Factor and multiple of the UK grid factor in the 2025 set |
|---|---|---|
UK residual mix with value | Safestore [3] | 0.36532 kgCO2e/kWh or 2.1 times |
Great Britain residual mix with value | British Land [4] | 0.42076 kgCO2e/kWh from the 2024 vintage or 2.4 times |
Residual mix named | SEGRO [27] | AIB European Residual Mixes 2020 listed among the factor sources for 2024 data |
Supplier factors or supplier energy mix | Great Portland Estates [31] and Shaftesbury Capital [24] and Landsec [29] | Not stated as a single value |
REGO supply set to zero with no fallback stated | Big Yellow [16] | Not stated |
Not stated in the text read | Other REITs in the sample | Not stated |
Source. Company reports as cited and DESNZ 2026 methodology paper Table 9 for the factor of 0.17700 in the 2025 set [1]. Multiples calculated by this paper. Safestore prints its factor without a unit and it is read here as kgCO2e/kWh. British Land is shown for method only because its tonnes were not read.
The arithmetic shows why this matters. A REIT that backs 90% of its electricity and prices the rest at a residual mix 2.4 times the grid factor reports a market based figure of about a quarter of location based. Priced at the grid average the same 10% gives a tenth. Without the factor a reader cannot tell which happened.
Finding 4. The frameworks test different figures
Table 4. Which Scope 2 figure each framework asks for
Framework | Location based | Market based | Status as at 9 October 2026 |
|---|---|---|---|
GHG Protocol Scope 2 Guidance [9] | Required | Required where contractual instruments exist | Published 2015. Revised Corporate Standard carrying the Scope 2 text estimated for the fourth quarter of 2028 [32] |
UK SRS S2 [5] | Required | Optional | Published February 2026. Applied by the FCA on a comply or explain basis from periods beginning 1 January 2027 [8] |
EPRA sBPR [33] | Minimum requirement | May also be reported | Fourth edition April 2024 |
ESRS E1 under CSRD [6] | Required | Required | Both kept in the simplified ESRS adopted by Delegated Regulation (EU) 2026/1563 which applies to financial years from 1 January 2027 [34] [35] |
SBTi near term criteria [36] | Either basis | Either basis | One approach used consistently for setting and tracking. Version 5.3.1 of April 2026 |
SBTi Net Zero Standard version 2.0 [7] | Basis for target ambition | Contracted low carbon electricity counts toward a separate target | Released 11 June 2026. Effective 1 February 2027. Version 1 stays open for new targets until the end of 2027 |
SFDR principal adverse impact indicator 1 [37] | Basis not specified | Basis not specified | In force |
Source. Framework texts as cited. The adopted ESRS E1 wording was read on the EFRAG copy of the delegated act and not in the Official Journal.
A UK REIT that reports against UK SRS S2 will therefore give location based Scope 2 as its required figure. Guidance from the European Public Real Estate Association (EPRA) treats it as the minimum. A REIT with EU reporting duties will also need market based under ESRS. A science based target set under SBTi version 2.0 has its ambition set on the location based figure.
Finding 5. The 2026 electricity factor narrows the gap by a quarter
The UK grid factor fell from 0.17700 to 0.13096 kgCO2e/kWh between the 2025 and 2026 sets [1]. For a REIT whose market based figure is zero the gap falls by the same 26% with no change in supply.
Table 5. Worked example for 10000 MWh of fully REGO backed electricity
Line | 2025 set | 2026 set |
|---|---|---|
Location based (tCO2e) | 1770.0 | 1309.6 |
Market based (tCO2e) | 0 | 0 |
Gap (tCO2e) | 1770.0 | 1309.6 |
Source. DESNZ factors [1]. Worked example and not an observed portfolio.
The gap narrows by 460.4 tCO2e. Nothing about the certificates or the buildings changed.
Finding 6. Research questions what a certificate changes
Certificates are a permitted instrument under the GHG Protocol. Peer reviewed work questions whether they change generation and whether the method directs effort well.
Table 6. What peer reviewed papers say about the market based method
Paper | Finding |
|---|---|
Gillenwater 2008 [38] | As currently defined the retiring of a renewable energy certificate may have no impact on emissions from electric power generation |
Brander et al 2018 [39] | The market based method is likely to lead to a misallocation of climate change mitigation efforts |
Hulshof et al 2019 [40] | European certificate markets suffer from poor liquidity and very volatile prices |
Bjørn et al 2022 [41] | If the trend continues 42% of committed Scope 2 reductions in the companies studied will not result in real world mitigation |
Bjørn et al 2025 [42] | The share of companies behind on their targets in 2022 would rise from 28% to 50% under three stricter Scope 2 accounting rules |
Scholta and Blaschke 2025 [43] | There are substantial seasonal and intra day mismatches between green electricity supply and demand |
Source. Abstracts of the papers cited.
The GHG Protocol consulted on hourly matching and deliverability for the market based method between October 2025 and January 2026. It received nearly 1100 responses from 56 countries and reported low levels of support for those proposals. Support was lowest among companies and industry groups [44]. The revised Corporate Standard which will carry the Scope 2 text is estimated for the fourth quarter of 2028 [32]. Until then annual REGO matching remains permitted.
In this sample 84% of location based Scope 2 disappears under the market based method. Make your UK REIT Scope 2 gap explainable line by line before an assurance provider asks.
What this means in practice
Five actions for the next Scope 2 disclosure
1. Lead with location based and show market based beside it
Location based is the required figure under UK SRS S2 and the minimum under EPRA sBPR [5] [33]. Report market based next to it with the certificate share. The ISSB standards for UK real estate article sets out the wider disclosure.
2. Explain the residual line by line
Split the market based figure into heat and vacancy and overseas supply and any electricity without certificates. In Table 2 every explained residual falls into one of those groups.
3. Name the factor for unbacked electricity
State whether it is a residual mix or a supplier factor or the grid average and give its vintage. A residual mix can be more than twice the grid factor.
4. Set targets and prices on the figure that will be tested
A target or an internal carbon pricing charge set on a market based zero will not move. Funds reporting SFDR principal adverse impacts should state which basis they use. A transition risk assessment should say which of the two figures it uses.
5. Keep certificate evidence with the consumption it covers
Hold the supply contract and certificate record against each meter and period. For file uploads Carbon data integration keeps the source file and names the person who uploaded it against every row.
How Sustainify AI supports dual reporting
Carbon data lineage traces each Scope 2 figure to the entry and the factor set behind it so a reviewer can see which kilowatt hours and which factor produced each number. Carbon data governance pins each factor set to its reporting period. The platform supports the disclosure. It does not replace an assurance provider.
Disclosure of interest. This paper is published by Sustainify AI. The analysis used the public sources and the method set out in the Method section and was carried out independently of the platform.
Limitations
The sample is small and mixed. Fifteen REITs were chosen by the writer. Four are for the year before the latest. Boundaries differ. Some include heat and some include overseas assets. Great Portland Estates and Tritax Big Box count only the electricity the landlord buys for common parts and similar areas. The median rests on 15 values and would move if the sample changed.
Some figures were not read. British Land was excluded because its Scope 2 tonnes sit in a spreadsheet that could not be read. The latest year figures for Landsec and Hammerson and SEGRO and Picton were not read either. Where a report is said not to explain something this describes the text read.
Some reports are inconsistent. Safestore names 2023 conversion factors in its narrative and prints a 2025 factor table [3]. LondonMetric gives a renewable share of 98% and 97% in different places [19]. Figures were taken from the main data tables.
The ESRS wording was not checked in the Official Journal. Table 4 relies on the EFRAG copy of the adopted delegated act for ESRS E1 [35].
The worked example is invented. It shows the effect of the 2026 factor and not any real portfolio.
What not to conclude. A market based zero is a permitted figure under the GHG Protocol. A large gap does not mean a REIT has misreported. It means two methods answer two different questions.
References
[1] Department for Energy Security and Net Zero. 2026 Government Greenhouse Gas Conversion Factors for Company Reporting Methodology Paper. 11 June 2026. Table 9. Accessed 9 October 2026.
[2] Hammerson plc. ESG Report 2024. Pages 24 and 32. Accessed 9 October 2026.
[3] Safestore Holdings plc. Mandatory Greenhouse Gas Emissions Report 2025. Year to 31 August 2025. Accessed 9 October 2026.
[4] The British Land Company PLC. Reporting Criteria and Independent Assurance 2026. Pages 3 and 7 and 9. Accessed 9 October 2026.
[5] Department for Business and Trade. UK Sustainability Reporting Standard S2 Climate related Disclosures. 25 February 2026. Paragraph 29(a)(v) and paragraphs B30 and B31. Accessed 9 October 2026.
[6] European Financial Reporting Advisory Group. Comparative Table ESRS E1 December 2025. December 2025. ESRS E1 paragraphs 44 and 49 of the 2023 text and paragraph 29 of the simplified draft. Accessed 9 October 2026.
[7] Science Based Targets initiative. SBTi Corporate Net Zero Standard Version 2.0. 11 June 2026. Criterion CNZS C9.4 on page 31 and criterion CNZS C12.2 on page 35. Accessed 9 October 2026.
[8] Financial Conduct Authority. PS26/19 Aligning listed issuers sustainability disclosures with international standards. 30 September 2026. Paragraphs 2.18 and 3.6 and 3.7 and 3.12. Accessed 9 October 2026.
[9] World Resources Institute and World Business Council for Sustainable Development. GHG Protocol Scope 2 Guidance Executive Summary. 2015. Section 5.1. Accessed 9 October 2026.
[10] World Resources Institute and World Business Council for Sustainable Development. GHG Protocol Scope 2 Guidance. 2015. Sections 1.5.1 and 4.1.2 and 6.5 and Table 6.3. Accessed 9 October 2026.
[11] Primary Health Properties PLC. Responsible Business Report 2025. Page 10. Accessed 9 October 2026.
[12] Custodian Property Income REIT plc. EPRA sBPR Disclosures. Accessed 9 October 2026.
[13] The Unite Group PLC. Possible offer for Empiric Student Property plc. Scheme Effective Announcement dated 28 January 2026. Accessed 9 October 2026.
[14] Picton. Acquisition of Picton by LMP and SREIT. Completed 10 September 2026. Accessed 9 October 2026.
[15] PricewaterhouseCoopers LLP. Independent Limited Assurance Report to the Directors of Great Portland Estates plc. Year ended 31 March 2026. Page 2. Accessed 9 October 2026.
[16] Big Yellow Group PLC. Annual Report 2026 Directors Report. Pages 122 to 124. Accessed 9 October 2026.
[17] Picton Property Income Limited. Sustainability Data and Performance Report. Calendar 2024 data. Page 21. Accessed 9 October 2026.
[18] Derwent London plc. Responsibility Report 2025. Pages 10 and 11. Accessed 9 October 2026.
[19] LondonMetric Property plc. Responsible Business and ESG Report 2026. Pages 3 and 7 and 22 to 26. Accessed 9 October 2026.
[20] Workspace Group plc. 2026 Sustainability Report. Annual Report and Accounts 2026. Pages 81 to 83. Accessed 9 October 2026.
[21] Grainger plc. Annual Report and Accounts 2025. Pages 48 and 49. Accessed 9 October 2026.
[22] Tritax Big Box REIT plc. EPRA Sustainability Report 2025. Pages 10 to 12. Accessed 9 October 2026.
[23] SGS United Kingdom Ltd. ISAE 3000 Environmental KPIs Assurance Statement The Unite Group PLC 2025. Page 3. Accessed 9 October 2026.
[24] Shaftesbury Capital PLC. 2025 EPRA Sustainability Data Report. April 2026. Pages 8 and 15 and 16 and 32 and 33. Accessed 9 October 2026.
[25] Land Securities Group plc. Sustainability Performance and Data Report 2025. Table 12 on page 16. Accessed 9 October 2026.
[26] Supermarket Income REIT plc. Sustainability Report 2026. Pages 13 and 14. Accessed 9 October 2026.
[27] SLR Consulting Limited. ISAE 3000 Assurance Statement SEGRO plc 1 January 2024 to 31 December 2024. 4 February 2025. Pages 1 and 2. Accessed 9 October 2026.
[28] SGS United Kingdom Ltd. ISO 14064 GHG Data Verification Statement The Unite Group PLC 2025. Pages 2 and 3. Accessed 9 October 2026.
[29] Land Securities Group plc. Sustainability Additional Disclosures 2026. Page 21. Accessed 9 October 2026.
[30] Grainger plc. FY25 GHG Emissions Verification Statement. November 2025. Accessed 9 October 2026.
[31] Great Portland Estates plc. Basis of Reporting 2026. Pages 6 and 10 as printed. Accessed 9 October 2026.
[32] GHG Protocol. Consolidated Standard Development Plan Version 2.0. 29 July 2026. Pages 14 and 16. Accessed 9 October 2026.
[33] European Public Real Estate Association. EPRA Sustainability Best Practices Recommendations Guidelines Fourth Edition. April 2024. Section 4.9 GHG Indir Abs on page 27. Accessed 9 October 2026.
[34] European Commission. Commission Delegated Regulation (EU) 2026/1563. 3 July 2026. Published in the Official Journal on 21 September 2026. Article 3. Accessed 9 October 2026.
[35] European Financial Reporting Advisory Group. ESRS E1 Delegated Act text on the EFRAG Knowledge Hub. Copy of the Commission Delegated Regulation of 3 July 2026. Paragraph 30(a)(ii). Accessed 9 October 2026.
[36] Science Based Targets initiative. SBTi Corporate Near Term Criteria Version 5.3.1. April 2026. Criterion C8. Accessed 9 October 2026.
[37] European Commission. Commission Delegated Regulation (EU) 2022/1288. Annex I Table 1 indicator 1. Accessed 9 October 2026.
[38] Gillenwater M. Redefining RECs Part 1 untangling attributes and offsets. Energy Policy. Volume 36 issue 6 pages 2109 to 2119. 2008. Accessed 9 October 2026.
[39] Brander M and Gillenwater M and Ascui F. Creative accounting A critical perspective on the market based method for reporting purchased electricity (scope 2) emissions. Energy Policy. Volume 112 pages 29 to 33. 2018. Accessed 9 October 2026.
[40] Hulshof D and Jepma C and Mulder M. Performance of markets for European renewable energy certificates. Energy Policy. Volume 128 pages 697 to 710. 2019. Accessed 9 October 2026.
[41] Bjørn A and Lloyd SM and Brander M and Matthews HD. Renewable energy certificates threaten the integrity of corporate science based targets. Nature Climate Change. Volume 12 issue 6 pages 539 to 546. 2022. Accessed 9 October 2026.
[42] Bjørn A and Lund JF and Brander M. Up to half of companies would be behind on their climate targets under stricter scope 2 accounting rules. Environmental Research Letters. Volume 20 issue 2 article 024004. 2025. Accessed 9 October 2026.
[43] Scholta HF and Blaschke MJ. Temporal matching as an accounting principle for green electricity claims. Nature Communications. Volume 16 article 9280. 2025. Accessed 9 October 2026.
[44] GHG Protocol. Scope 2 Public Consultation Executive Summary of Feedback. 29 July 2026. Pages 2 and 5 and 6. Accessed 9 October 2026.
UK SRS S2 tests location based and SBTi version 2.0 sets ambition on it. Keep both figures traceable to the entries and factor sets behind them with governed dual reporting.
Frequently Asked Questions
What is the difference between location based and market based Scope 2?
Location based prices electricity at the grid average factor. Market based prices it by the contracts and certificates the company holds. The GHG Protocol requires both where contractual instruments exist [9].
How big is the gap for UK REITs?
In 15 UK REITs market based Scope 2 is a median of 6.7% of location based. Across the sample 84% of the location based total disappears under the market based method.
Why is there no 2024 data year?
The 2025 set used 2023 data and the 2026 set uses 2025 data. Shortening the lag skipped 2024 [2].
Why is market based Scope 2 not zero for some REITs?
The residual is usually purchased heat or supply outside the UK or contracts that are not yet REGO backed. Hammerson UK was 125 tCO2e while France and Ireland added 1718 [2].
Which figure does UK SRS S2 require?
Location based. Information about contractual instruments is required where it is needed to understand the figure. Market based may be disclosed [5]. The FCA applies the standard to listed commercial companies on a comply or explain basis [8].
Does CSRD ask for both figures?
Yes. ESRS E1 asks for location based and market based Scope 2 and the simplified ESRS adopted in July 2026 keep both [6] [34] [35]. The TCFD CSRD and SECR comparison covers how the regimes overlap.
Which basis should a science based target use?
The SBTi near term criteria allow either basis used consistently [36]. The Net Zero Standard version 2.0 sets target ambition on location based Scope 2 and takes effect on 1 February 2027 [7].
What factor should price electricity without certificates?
A residual mix where one exists and the grid average with a disclosure where none does [10]. Safestore uses a UK residual mix of 0.36532 kgCO2e/kWh which is 2.1 times the grid factor in the 2025 set [3].
Will the GHG Protocol change the market based rules?
Possibly. Its consultation on hourly matching drew nearly 1100 responses and low levels of support for the proposals [44]. The revised Corporate Standard is estimated for the fourth quarter of 2028 [32].
How does the 2026 electricity factor affect the gap?
For a fully REGO backed portfolio the gap narrows by 26% because only the location based figure falls [1].