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How EACs Simplify Carbon Reporting for Enterprises

Author
Ryan Rudman
Publication Date
January 15, 2025

Carbon reporting has shifted from being a niche requirement to becoming a core business imperative. With growing regulatory scrutiny, rising investor expectations, and increasing stakeholder demands, businesses need reliable tools to track and disclose their carbon emissions.

Energy Attribute Certificates (EACs) provide a straightforward solution to one of the most challenging aspects of carbon reporting—Scope 2 emissions from purchased electricity. In this blog, we’ll examine how EACs simplify the reporting process, reduce administrative burdens, and help businesses maintain compliance with global sustainability standards.

The Carbon Reporting Challenge

For businesses, carbon reporting involves quantifying and disclosing greenhouse gas emissions across three categories:

  • Scope 1: Direct emissions from company-owned operations.
  • Scope 2: Indirect emissions from purchased electricity.
  • Scope 3: Emissions throughout the value chain.

Tracking Scope 2 emissions, in particular, can be complex, especially for businesses with diverse operations or a significant reliance on grid electricity.

How EACs Simplify Scope 2 Reporting

EACs address the complexities of Scope 2 emissions by providing verifiable data on renewable energy usage.

  1. Quantifiable Emission Reductions
    Each EAC represents one megawatt-hour (MWh) of renewable electricity, enabling businesses to directly calculate their carbon reductions.
  2. Streamlined Data Collection
    EACs centralise renewable energy data into a single, transparent system, simplifying reporting for multi-site operations.
  3. Alignment with Global Standards
    EACs comply with major frameworks such as the Greenhouse Gas Protocol, ensuring businesses can report their emissions accurately and confidently.

EACs and Evolving Regulations

As sustainability regulations become more stringent, businesses require reliable tools to remain compliant. EACs are vital for meeting the requirements of:

  • The Corporate Sustainability Reporting Directive (CSRD): Applicable across Europe.
  • The Sustainability Accounting Standards Board (SASB): Guidelines for global reporting.
  • Carbon Offset Requirements: Supporting science-based targets.

By adopting EACs, businesses demonstrate accountability and reduce the risk of non-compliance penalties.

Strategic Advantages of EACs in Carbon Reporting

Beyond regulatory compliance, EACs offer several strategic benefits:

  • Building Trust: Verifiable renewable energy usage enhances credibility with investors, customers, and other stakeholders.
  • Driving Efficiency: Simplified reporting reduces administrative effort, allowing resources to be redirected towards other sustainability initiatives.
  • Improving ESG Scores: Renewable energy commitments backed by EACs enhance environmental performance metrics and overall ESG ratings.

Energy Attribute Certificates (EACs) simplify carbon reporting by helping businesses reduce Scope 2 emissions, ensure compliance with global standards, and build trust with stakeholders. With EACs, enterprises can turn carbon reporting from a regulatory challenge into a strategic opportunity for sustainability leadership.

With AFS Energy's expert guidance, your organisation can transform its sustainability journey into a competitive advantage, fostering long-term success and resilience in an ever-changing business landscape.