Location-based emission factor methodology

This article documents Scaler's methodology for location-based emission factors, including dataset sources, regional application logic, projection calculations, and version management. This serves as the authoritative technical reference for auditors, methodology reviewers, and advanced users.

For step-by-step configuration instructions, see Configuring location-based emission factors.

For version history and dataset changes, see Location-based emission factor reference log.

Location-based emission factors represent the average emissions intensity of the electricity grid or energy supply in a specific geographic region. Scaler provides a default, regularly updated emission factor set combining multiple authoritative sources to enable consistent emissions calculations across global portfolios.

What this article covers:

Scaler draws location-based emission factors from the following authoritative datasets:

CRREM (Carbon Risk Real Estate Monitor)

Australian National Greenhouse Accounts (NGA)

Canada: National Inventory Report (NIR)

U.S. EPA

IEA (International Energy Agency) — Emission Factors 2025

Energy Star Portfolio Manager

Scaler creates a reference set by combining factors from multiple datasets. The current default set is labeled in the platform dropdown as:

Default (Scaler emission factors: CRREMv2.07 + EPA + NGA + Canada National Inventory)

This label is shortened for readability. The full underlying composition is:

Each reference set is documented with specific dataset versions and publication dates in the Location-based emission factor reference log.

In addition to the default set, Scaler supports licensed datasets that clients can opt into for specific regions. These do not change the default set composition — they appear as alternative selectable sources alongside the default in the Emission Factor Tool.

IEA Emission Factors 2025 (Europe) — When enabled for a client, IEA appears as a per-country selectable option for European countries via the gear icon, alongside CRREM. Selections are made per country, so clients can mix sources across their European portfolio.

Scaler applies emission factors at different geographic levels depending on dataset availability and user configuration:

National-level factors (default for most countries)

Regional factors (Australia, Canada, United States)

Australia: State-level or electricity market region

Canada: Province-level

United States: eGRID subregion

Even when an Energy network is assigned for Australia or USA assets, users can still choose to use the CRREM data sets in these countries with the gear icon under Data Collection Portal → Portfolio → Emission Factors.

For Australia, Canada and the United States, Scaler can apply regional emission factors that better reflect the actual emissions intensity of the electricity grid serving a specific asset. This improves accuracy for:

Australia has two main wholesale electricity markets:

National Electricity Market (NEM)

Wholesale Electricity Market (WEM)

How Scaler applies regional factors:

If Energy network is assigned → Scaler uses the state or market region emission factor from Australian NGA.

If Energy network is not assigned → Scaler uses the national-level factor.

Scaler applies province-level electricity emission factors for Canadian assets when an Energy network is assigned. The available regions correspond to Canadian provinces and territories as reported in the NIR.

How Scaler applies regional factors:

Important: The State/province field alone does not determine which emission factor is applied. The Energy network field must be populated separately with the correct province or region.

The U.S. EPA divides the country into 26 eGRID subregions based on electricity transmission networks. Each subregion has a unique emissions profile depending on generation mix.

Examples:

Determining your eGRID subregion:

Users can identify the correct subregion using:

How Scaler applies subregional factors:

If Energy network is assigned → Scaler uses the eGRID subregion emission factor from EPA eGRID.

If Energy network is not assigned → Scaler uses the national-level factor (U.S. average).

Energy networks are configured at the asset level in Asset Details → Location.

The Energy network field only appears when Country is set to Australia, Canada or United States.

For bulk updates, use the Scaler Spreadsheet with the field name exactly matching: Energy network.

Sources:

Scope classification:

Projections: Available through 2050 using CRREM grid decarbonization rates.

Sources:

Calculation methodology:

No globally standard database exists for district heating and cooling emissions. Scaler follows CRREM, GRESB, and GHG Protocol guidance:

DHC_EF = ELECTRICITY_EF × 0.876340396

Where:

Why this approach:

District heating and cooling systems often use electricity as a primary energy input (heat pumps, chillers). The conversion factor represents the efficiency relationship between electricity input and thermal energy output.

Why no DHC dataset is listed:

District heating and cooling emission factors are highly system-specific — they vary by operator, fuel mix, and local infrastructure. Rather than publishing a DHC emission factor dataset, CRREM lists electricity emission factors and applies this conversion rate internally within their Excel-based calculation tool. The result is a proxy, not a dataset.

If your DHC operator provides an actual system-specific emission factor, you can switch to the Manual emission factor set in Data Collection Portal → Portfolio → Emission Factors and enter it directly. Update the Reference field to document the source.

Historical context:

Previously, CRREM applied this conversion to the previous year's electricity emission factor. Scaler (as well as CRREM since v2.06) applies it to the same year for methodological clarity and consistency.

Scope classification:

Projections: Available through 2050 (derived from electricity projections).

Heat-cold storage systems convert electricity into stored thermal energy (heating or cooling capacity). Scaler calculates emission factors using a Coefficient of Performance (COP) approach.

Calculation methodology:

COP = ENERGY_OUTPUT / ELECTRICITY_INPUT

Higher COP values mean less electricity per unit of heat/cold produced, lowering emissions.

Per kWh output:

EF_OUTPUT = EF_ELECTRICITY / COP

Where:

Example:

With an electricity emission factor of 0.300 kg CO₂e/kWh, the heat-cold storage emission factor per kWh output is:

0.300 / 4.9 = 0.0612 kg CO₂e/kWh

Scope classification:

Projections: Available through 2050 (derived from electricity projections).

Sources:

Natural gas:

Other fuels:

District hot water / chilled water:

Scope classification:

Why fuels appear in the Location-based Emission Factor Tool:

Although fuels contribute to Scope 1 emissions (not Scope 2), they appear in the Location-based Emission Factor Tool to provide a single interface for reviewing and managing all default emission factors across energy types. This does not change their scope classification.

Important: Fuels do not have a location-based vs market-based divide.

Fuel emission factors are based on physical combustion properties and should only be adjusted when actual fuel composition differs from standard values (e.g., biogas blends). See the section Why fuels appear in the Location-based Emission Factor Tool for guidance on when adjustments are appropriate.

Projections: Not available, the same emission factor is used for all years through 2050. Fuel combustion rates are expected to remain relatively stable, and so no forward-looking fuel emission factor changes are applicable.

For datasets without forward-looking projections (e.g., EPA eGRID, Australian NGA), Scaler uses CRREM's grid decarbonization rates to interpolate emission factor values through 2050.

This appears in downloads and references as "Dataset_name (CRREM projections)".

Scaler applies decarbonization rates to:

Interpolation process:

Example (USA):

Projections available:

Projections NOT available:

Why only electricity-based projections:

CRREM's pathways focus on grid decarbonization—the transition of electricity generation from fossil fuels to renewable energy. Fuel combustion emission factors are not expected to change significantly over time.

Roadmaps Tool:

CRREM stranding risk analysis:

At any time, users can switch to manual emission factors to:

Requirements when using manual overrides:

Visual cues:

Audit trail:

The Reference field should be used to document the source of manual values to maintain GHG Protocol compliance and audit readiness.

For instructions, see Configuring location-based emission factors.

Scope classifications in Scaler are determined by the control boundary (landlord vs tenant) set in Area type combined with the resource Subcategory (electricity, fuel, etc.), not by which tool displays the emission factor.

Scope 1 — Direct emissions under landlord control

Scope 1 includes emissions that:

In Scaler, this includes:

Scope 2 — Indirect energy emissions under landlord control

Scope 2 includes emissions that:

In Scaler, this includes:

Scope 2 emissions can be calculated using:

Scope 3, Category 3 — Tenant-controlled operational emissions

In Scaler's real estate analytics, Scope 3 refers specifically to operational emissions occurring on-site but under tenant control.

This includes:

Key principle:

Control is determined explicitly by the selected Area type, which specifies whether the activity is landlord-controlled or tenant-controlled. The same resource (e.g., natural gas) can be Scope 1 or Scope 3 depending on control.

For comprehensive scope guidance, see Understanding Scope 1, Scope 2, and Scope 3 emissions in Scaler.

The Location-based Emission Factor Tool displays emission factors for all energy Subcategories present in your portfolio, including:

This design allows users to review default factors and apply manual overrides consistently across all energy sources in a single interface.

The location-based vs market-based distinction applies only to Scope 2 emissions (purchased electricity, steam, heat, and cooling) under the GHG Protocol.

Fuels do not have a location-based vs market-based divide.

Fuel emission factors are based on the physical combustion properties of the fuel itself, which are consistent globally (with minor variations for fuel composition). For example:

Fuel emission factors in the Location-based Emission Factor Tool should only be manually adjusted when:

The actual fuel composition is physically different, resulting in different combustion emissions.

Examples:

When NOT to adjust fuel emission factors:

Why this matters:

Adjusting fuel emission factors without a legitimate change in fuel composition can:

If your organization uses a fuel with a different composition (e.g., biogas blend, alternative fuel mix), you can:

This maintains audit trail transparency while accurately representing physical combustion emissions.

Scaler updates the default emission factor set when authoritative sources release new data. However, updates follow a structured approach:

General rule: Scaler avoids updating default emission factors during active reporting seasons (January–July) to maintain consistency for organizations preparing sustainability reports, GRESB submissions, and compliance filings.

Exceptions: Critical corrections or data quality issues may necessitate mid-season updates. These are communicated to portfolio administrators ahead of time.

Default sets:

Previous emission factor sets:

Audit trail:

For complete version history, see Location-based emission factor reference log.

Users can choose previous versions from the Emission Factor Tool dropdown. This is useful for:

CRREM releases the Risk Assessment Tool and the Pathways Tool on independent schedules. When a new version is published, Scaler performs a structural and numerical review — comparing pathway values, emission factor values, and dataset coverage region-by-region — before deciding whether to adopt it as the platform default.

A new version is only adopted as a default if it changes client outputs in a meaningful way, or aligns Scaler with a more current authoritative dataset for a given region. Structural-only releases (column reorganisations, renamed region codes, file splits) are tracked but do not trigger a platform update during the reporting season.

Most recent review — CRREM Pathways V2.05 (May 2026): Reviewed against current V2.04. Pathway values are identical: all 1,497 region × sector CO₂ and EUI series match V2.04 to within 1e-6 across 2020 to 2050, and all 80 shared grid emission factor codes match exactly. The structural changes (CO₂-only pathways, AUS → NCC Zone region renames, new pathway code suffixes, workbook split) do not alter client outputs. Separately, V2.05 publishes a new natural gas emission factor (0.202 kgCO₂e/kWh) on a gross calorific value basis, replacing the net basis used in the V2.07 Risk Assessment Tool (0.181 US/Canada, 0.183 EU/APAC). Scaler did not adopt either change mid-season — the gross-basis natural gas value would raise gas emissions ~10% (≈4% at the portfolio level given natural gas is 30–40% of energy use in most assets) and break like-for-like comparisons. Pending clearer guidance from CRREM's technical team on the methodology shift. Full review notes are in the Location-based emission factor reference log.