GRI Topic Standard Project for
Climate Change – Energy Exposure
draft
Comments to be received by 29 February 2024
This exposure draft of the GRI Energy Topic Standard is published for public comment by the
Global Sustainability Standards Board (GSSB), the independent standard-setting body of GRI.
This exposure draft is intended to replace GRI 302: Energy 2016.
Any interested party can submit comments on this draft by 29 February 2024 via this online
questionnaire. As required by the GSSB Due Process Protocol, only comments submitted inwriting and in English will be considered. Comments will be published on the GRI website andconsidered a matter of public record. Instructions to submit comments are outlined on thefirstpage of the online questionnaire.
An explanatory memorandum preceding the exposure draft summarizes the objectives of the
project and the significant proposals contained within this exposure draft.
This draft is published for comment only and may change before official publication.
For more information, please visit the GRI Standards webpage. For questions regarding theexposure draft or the public comment period, please send an email to climate@globalreporting.org

This document has been prepared by the GRI Standards Division and is made available to observers
at meetings of the Global Sustainability Standards Board (GSSB). It does not represent an official
position of the GSSB. Board positions are set out in the GRI Sustainability Reporting Standards. The
GSSB is the independent standard setting body of GRI. For more information visit
www.globalreporting.org.
© GRI 2023

1

Explanatory memorandum2
34This explanatory memorandum sets out the objectives for the review of GRI 302: Energy 2016, thesignificant proposals contained in the exposure draft, and a summary of the GSSB’s involvement andviews on the development of the draft.

5

Objectives for the project

6
7
8
9
10

The primary objective of this project is to review GRI 302: Energy 2016 as part of the climate change
project. The project includes the review of GRI 302: Energy 2016, GRI 305: Emissions 2016
(Disclosures 305-1 to 305-5), and GRI 201: Economic Performance 2016 (Disclosure 201-2). As
outlined in the GSSB’s Due Process Protocol, a multi-stakeholder technical committee wasestablished in May 2023 to contribute to the review of the climate change-related disclosures.

11
12
13
14

The aim is to align with internationally agreed best practice, latest developments, and relevant
authoritative intergovernmental instruments related to energy. Using energy more efficiently andopting for renewable energy sources is essential for combating climate change and reducing anorganization’s overall environmental footprint.

15
16
17

Specifically, the revised energy-related disclosures will enable an organization to disclose publicly its
most significant impacts on energy and how the organization manages these impacts, enhancing thetransparency of the organization’s impacts and increasing organizational accountability.

18
19

For more information on the project, consult the Project Proposal and the Technical Committee
biographies.

20

Significant proposals

21
22
23

An exposure draft for the revised GRI 302: Energy 2016 has been developed in line with the project
objectives as set out above. Notable changes and inclusions in this exposure draft are summarized
below.

24

•

25
26
27
28

The Energy exposure draft presents a dedicated, additional management disclosure that will help
in disclosing the role of energy policies and commitments in the transition to a decarbonizedeconomy. In this context, disclosure on energy target setting has been included in the guidance.
•

29
30
31
32
33
34
35
36
37

Energy consumption and generation within the organization
The Energy exposure draft contains extended requirements on energy consumption andgeneration. An important update covers purchased and self-generated electricity consumption
and sold electricity, with a requirement to provide a breakdown per energy source and information
on whether it is renewable or non-renewable. Organizations are required to report on thefulfilment of relevant quality criteria if contractual instruments are used. Additional requirements
have been included to report the activities in which fuel and electricity are consumed, and toreport separately on self-generated non-fuel renewable electricity consumption. A template isprovided to assist in reporting under this disclosure.

•

38
39
40
41
42

New management disclosure on energy management

Energy consumption upstream and downstream in the value chain
The Energy exposure draft requires a new breakdown of significant energy consumption in theorganization’s value chain by upstream and downstream Scope 3 categories. This information willraise awareness on the organization’s value chain while enhancing transparency on data
disclosed.

•

Reduction of energy consumption

Page 2 of 22

43
44
45
46
47
48

The exposure draft presents an additional requirement on whether the energy reductions occur
within the organization or at which stage of the value chain. This integrates content from theDisclosure 302-5 Reductions in energy requirements of products and services of GRI 302: Energy
2016 into the revised Reduction of energy consumption Disclosure. This change goes in the
direction of raising organizations’ awareness and responsibility on energy consumption that
occurs in their value chain, while enhancing transparency.

50

GSSB involvement and views on the development of
this draft

51
52

The GSSB appointed three of its members as sponsors for this project and the sponsors observed theTechnical Committee process and attended most of the meetings.

53
54
55

The GSSB confirmed its support for the contents of the exposure drafts when it voted to approve thedrafts for public exposure at its meeting on 16 November 2023. The recording of the meeting can beaccessed on the GSSB website.

56

Note on reading this document

57
58

This document includes generic text used in all GRI Standards. This text is highlighted in grey andcannot be changed – please do not comment on this text.

59
60
61
62

Underlined terms in the draft Standard indicate terms for which definitions have been provided. Mostof these terms are already defined in the GRI Standards Glossary 2022 – these definitions arehighlighted in grey in the Glossary and cannot be changed. The proposed new definition is nothighlighted in grey and is open for review.

49

Page 3 of 22

63

GRI EN: Energy 202x64

Content

65

Introduction.............................................................................................................................................. 566

Background on the topic ...................................................................................................................... 567

System of GRI Standards .................................................................................................................... 5

68

Using this Standard ............................................................................................................................. 769

1. Topic management disclosures .......................................................................................................... 870

Disclosure EN-1 Energy policies and commitments ........................................................................... 871

2. Topic disclosures ................................................................................................................................ 972

Disclosure EN-2 Energy consumption and generation within the organization .................................. 973

Disclosure EN-3 Upstream and downstream energy consumption .................................................. 1474

Disclosure EN-4 Energy intensity ...................................................................................................... 1675

Disclosure EN-5 Reduction of energy consumption .......................................................................... 18

76

Glossary ................................................................................................................................................ 20

77

Bibliography .......................................................................................................................................... 22

78
79

Page 4 of 22

80

Introduction

81
82

GRI EN: Energy 202X contains disclosures for organizations to report information about their energyrelated impacts, and how they manage these impacts.

83

The Standard is structured as follows:

84
85

•

Section 1 contains one disclosure, which provides information about how the organization
manages its energy-related impacts.

86
87

•

Section 2 contains four disclosures, which provide information about the organization’senergy-related impacts.

88
89
90

•

The Glossary contains defined terms with a specific meaning when used in the GRI
Standards. The terms are underlined in the text of the GRI Standards and linked to thedefinitions.

91
92

•

The Bibliography lists authoritative intergovernmental instruments and additional referencesused in developing this Standard, as well as resources that the organization can consult.

93
94

The rest of the Introduction section provides a background on the topic, an overview of the system of
GRI Standards and further information on using this Standard.

95

Background on the topic

96

This Standard addresses the topic of energy.

97
98
99
100
101

According to the Intergovernmental Panel on Climate Change (IPCC), global warming cannot belimited to well below 2°C without rapid and deep reductions in energy system GHG emissions overthe next 30 years. This will require significant changes to how organizations generate and consume
energy, including transitioning to renewable energy, electrifying end-use sectors, and phasing out
fossil fuels.

102
103
104

Organizations consume energy in various forms, such as fuel, electricity, heating, cooling, or steam.
Energy can be self-generated or purchased from external sources and can come from renewable or
non-renewable sources.

105
106
107

Energy consumption occurs throughout activities upstream and downstream of an organization’s
operations. This can include consumers’ use of the organization’s products and the end-of-life
treatment of these goods.

108
109
110

Impacts from energy consumption, as well as the transition to renewable energy, can affect theeconomy, environment, and people, including their human rights. As such, measures are required that
also support workers, local communities, and other stakeholders.

111
112
113
114

Impacts on the environment can include GHG emissions exacerbating climate change, loss of soil
and other natural resources loss, and waste generation, while impacts on the economy can include ashift in market preferences. Impacts on people can include job losses, an increasing need to reskill
workers, and different levels of access to affordable, reliable, and sustainable energy.

115

All energy-related impacts are to be considered when pursuing sustainable development.

116

System of GRI Standards

117
118
119
120

This Standard is part of the GRI Sustainability Reporting Standards (GRI Standards). The GRI
Standards enable an organization to report information about its most significant impacts on theeconomy, environment, and people, including impacts on their human rights, and how it manages
these impacts.

Page 5 of 22

121
122
123

The GRI Standards are structured as a system of interrelated standards that are organized into threeseries: GRI Universal Standards, GRI Sector Standards, and GRI Topic Standards (see Figure 1 inthis Standard).

124

Universal Standards: GRI 1, GRI 2 and GRI 3

125
126
127

GRI 1: Foundation 2021 specifies the requirements that the organization must comply with to report inaccordance with the GRI Standards. The organization begins using the GRI Standards by consulting
GRI 1.

128
129
130

GRI 2: General Disclosures 2021 contains disclosures that the organization uses to provide
information about its reporting practices and other organizational details, such as its activities,
governance, and policies.

131
132
133

GRI 3: Material Topics 2021 provides guidance on how to determine material topics. It also contains
disclosures that the organization uses to report information about its process of determining material
topics, its list of material topics, and how it manages each topic.

134

Sector Standards

135
136
137

The Sector Standards provide information for organizations about their likely material topics. The
organization uses the Sector Standards that apply to its sectors when determining its material topics
and when determining what to report for each material topic.

138

Topic Standards

139
140
141

The Topic Standards contain disclosures that the organization uses to report information about its
impacts in relation to particular topics. The organization uses the Topic Standards according to the listof material topics it has determined using GRI 3.

142

Figure 1. GRI Standards: Universal, Sector and Topic Standards

143

Page 6 of 22

144

Using this Standard

145
146
147
148
149

This Standard can be used by any organization – regardless of size, type, sector, geographic location,or reporting experience – to report information about its Energy-related impacts. This Standard canalso be used by organizations that supply energy or organizations that provide energy management
services. In addition to this Standard, disclosures that relate to this topic can be found in GRI CC:
Climate Change 202x.

150
151

An organization reporting in accordance with the GRI Standards is required to report the following
disclosures if it has determined Energy to be a material topic:

152•

Disclosure 3-3 in GRI 3: Material Topics 2021.

153
154

•

Any disclosures from this Topic Standard that are relevant to the organization’s Energyrelated impacts (Disclosure EN-1 through Disclosure EN-5).

155

See Requirements 4 and 5 in GRI 1: Foundation 2021.

156

Reasons for omission are permitted for these disclosures.

157
158
159
160
161

If the organization cannot comply with a disclosure or with a requirement in a disclosure (e.g.,
because the required information is confidential or subject to legal prohibitions), the organization isrequired to specify the disclosure or the requirement it cannot comply with, and provide a reason foromission together with an explanation in the GRI content index. See Requirement 6 in GRI 1 for more
information on reasons for omission.

162
163
164
165
166

If the organization cannot report the required information about an item specified in a disclosure
because the item (e.g., committee, policy, practice, process) does not exist, it can comply with therequirement by reporting this to be the case. The organization can explain the reasons for not having
this item, or describe any plans to develop it. The disclosure does not require the organization to
implement the item (e.g., developing a policy), but to report that the item does not exist.

167
168
169
170
171

If the organization intends to publish a standalone sustainability report, it does not need to repeat
information that it has already reported publicly elsewhere, such as on web pages or in its annual
report. In such a case, the organization can report a required disclosure by providing a reference in
the GRI content index as to where this information can be found (e.g., by providing a link to the web
page or citing the page in the annual report where the information has been published).

172

Requirements, guidance and defined terms

173

The following apply throughout this Standard:

174
175

Requirements are presented in bold font and indicated by the word 'shall'. An organization mustcomply with requirements to report in accordance with the GRI Standards.

176

Requirements may be accompanied by guidance.

177
178

Guidance includes background information, explanations, and examples to help the organization
better understand the requirements. The organization is not required to comply with guidance.

179
180

The Standards may also include recommendations. These are cases where a particular course ofaction is encouraged but not required.

181
182
183

The word ‘should’ indicates a recommendation, and the word ‘can’ indicates a possibility or option.
Defined terms are underlined in the text of the GRI Standards and linked to their definitions in the
Glossary. The organization is required to apply the definitions in the Glossary.

Page 7 of 22

184

1. Topic management disclosures

185
186

An organization reporting in accordance with the GRI Standards is required to report how it manages
each of its material topics.

187
188
189
190

An organization that has determined energy to be a material topic is required to report how it
manages the topic using Disclosure 3-3 in GRI 3: Material Topics 2021. The organization is also
required to report any disclosure from this section (Disclosure EN-1) that is relevant to its energyrelated impacts.

191

This section is therefore designed to supplement – and not replace – Disclosure 3-3 in GRI 3.

192

Disclosure EN-1 Energy policies and commitments

193

REQUIREMENTS

194

The organization shall:

195
196
197

a. report how its energy management policies and commitments contribute to energy
efficiency, the deployment of renewable energy, and the transition to a decarbonizedeconomy.

198

GUIDANCE

199
200

The organization reporting on its energy management policies and commitments should explain how
these relate to any country, regional, or industry-level energy regulations that apply.

201
202

Policies included in this disclosure can concern benefit-sharing, land rights, employment health andsafety, adequate remuneration, and commitments to ensure a clean environment.

203

The organization should include the following in this disclosure:

204•

Short-, medium-, and long-term targets aimed at:205oincreasing energy efficiency;

206
207

o

increasing the use of renewable energy, including whether and how contractual
instruments are taken into account in renewable energy target setting and monitoring;

208
209
210
211

o

avoiding or reducing the extent of negative impacts associated with the transition to
renewable energy. For example, impacts can be related to the procurement ofminerals needed for renewable energy and can affect both the environment and local
communities;

212•

Energy consumption reduction targets;

213
214

•

The investment allocated for energy management improvements, such as investment inenergy transition technologies, renewable energy, and energy efficiency initiatives;

215
216
217

•

A description of how stakeholders, including workers, local communities, and vulnerable
groups, are involved in the development of the organization’s energy policies related to thetransition and how they are affected.

218
219
220

In addition, the organization should report how its energy-related targets and commitments are in linewith the latest scientific evidence to limit global warming to 1.5°C.

Page 8 of 22

221

2. Topic disclosures

222
223
224
225

An organization reporting in accordance with the GRI Standards is required to report any disclosuresfrom this section (Disclosure EN-2 Energy consumption and generation within the organization,
Disclosure EN-3 Upstream and downstream energy consumption, Disclosure EN-4 Energy intensity,
Disclosure EN-5 Reduction of energy consumption) that are relevant to its energy-related impacts.

227

Disclosure EN-2 Energy consumption and generation
within the organization

228

REQUIREMENTS

229

The organization shall:

230
231

a. report total fuel consumption within the organization in joules, watt-hours, or multiples, anda breakdown of this total by:

226

232

i.

233

ii. renewable and non-renewable sources;234

iii. activity in which the fuel is consumed;

235
236
237

source;b. report total self-generated non-fuel renewable electricity, heating, cooling, and steam
consumption within the organization in joules, watt-hours, or multiples, and a breakdown of
this total by:

238

i.

239

ii. source;

240

iii. activity in which the energy is consumed;

241
242

electricity, heating, cooling, and steam consumption;c. report total purchased electricity, heating, cooling, and steam consumption within theorganization in joules, watt-hours, or multiples, and a breakdown of this total by:

243

i.

electricity, heating, cooling, and steam consumption;

244

ii.

source;245

iii. renewable and non-renewable sources;

246
247

d. report total self-generated energy sold in joules, watt-hours, or multiples, and a breakdown of
this total by:

248

i.

249

ii. source;

250

iii. renewable and non-renewable sources;

251

electricity, heating, cooling, and steam sold;e. report standards, methodologies, assumptions, and calculation tools used, including:

252
253
254

i.

how contractual instruments used to disclose information on purchased
electricity, heating, cooling, and steam fulfill quality criteria to ensure accuracy
and consistency;

255

ii. the source of the conversion factors used;

256
257

Page 9 of 22

258

GUIDANCE

259
260
261
262

Consumption of non-renewable energy usually contributes to Scope 1 GHG emissions, which arereported in Disclosure GH-1 of GRI CC Climate Change 20xx. Consumption of purchased electricity,
heating, cooling, and steam contributes to the organization’s Scope 2 GHG emissions, which arereported in Disclosure GH-2 of GRI CC Climate Change 20xx.

263
264
265
266

Throughout this Standard, emissions from the generation of acquired and consumed electricity,
heating, cooling or steam, are collectively referred to as “electricity”, in alignment with the GHG
Protocol Scope 2 Guidance. In addition, in line with the GHG Protocol Scope 2 Guidance, definitionsof electricity, heating, cooling and steam can include but are not limited to:

267
268

•

Electricity. This energy is used for operating machines, lighting, electric vehicle charging, or
heating and cooling systems.

269
270
271
272

•

Heating. Most commercial or industrial buildings require heat to control interior climates andheat water. Many industrial processes also require heat for specific equipment. That heat
may be produced from electricity or through a non-electrical process, such as solar thermalheat or thermal combustion processes (as with a boiler or thermal power plant).

273
274

•

Cooling. Similar to heat, cooling may be produced from electricity or through the distributionof cooled air or water.

275
276

•

Steam. Formed when water boils, steam is a valuable energy source for industrial
processes. It is used for mechanical work, heat, or directly as a process medium.

277
278
279

For some organizations, electricity is the only form of energy consumed. For others, energy
consumption takes different forms, such as steam or water provided by a district heating or chilledwater plant.

280

Energy can be purchased from external sources or produced by the organization (self-generated).

281
282
283
284
285
286

Organizations can also store or purchase energy through specific energy carriers (e.g., hydrogen) andenergy storage systems (e.g., batteries). When the organization consumes the energy from theenergy carrier or energy storage systems, this consumption is reported under EN-2-a, EN-2-b, or EN2-c. If an organization sells the energy from the energy carrier or energy storage systems, this isreported under EN-2-d. The organization should also report any additional information useful tounderstand the energy carriers’ primary energy source.

287
288

Unused feedstocks and fuels for energy generation are excluded when compiling the information
specified in EN-2-a, EN-2-b, and EN-2-c.

289
290
291
292

In addition to disclosing information in EN-2, the organization can report the total energy consumption
within the organization as the sum of EN-2-a, EN-2-b, and EN-2-c. The organization can also report
the total net energy consumption by subtracting the energy sold (EN-2-d) from the total energy
consumption within the organization.

293
294
295

The organization's energy consumption activities can include manufacturing processes, operating
office equipment, operating a car fleet, heating buildings, and conducting research and development
activities.

296
297

In this disclosure, purchased electricity, heating, cooling, and steam also refers to circumstanceswhere an organization may indirectly acquire and use electricity (e.g., as a tenant of a property).

298

See Table 1 for an example of how to present information on EN-2-a, EN-2-b, and EN-2.

299
300

The organization can provide additional breakdowns of energy consumption data when it supports
transparency or comparability over time, for example, by:

301
302

•
•

business unit or facility;
country.

Page 10 of 22

303

Guidance to EN-2-a

304
305
306

This requirement covers fuel consumption, including fuels purchased by the organization and fuelgenerated by the organization’s activities (such as coal mined, or oil and gas extracted by theorganization).

307
308
309

Non-renewable sources include all fuel used for transport, warehousing, and distribution (e.g., fuelfor combustion in boilers, furnaces, heaters, turbines, flares, incinerators, generators, and vehicles
owned or controlled by the organization, like gasoline and LPG).

310
311

Renewable sources can include biofuels purchased for direct use and biomass from sources owned
or controlled by the organization (also comprising industrial and municipal waste of biological origin).

312

Guidance to EN-2-b

313
314

This requirement covers self-generated electricity, heating, cooling, and steam consumption fromnon-fuel renewable energy sources (e.g., wind and solar).

315
316
317
318

This requirement excludes self-generated electricity, heating, cooling, and steam consumption if it isgenerated from fuel consumption. When the organization generates electricity from a nonrenewable or renewable fuel source and then consumes the generated electricity, heating, cooling,or steam, the energy consumption is counted once under EN-2-a.

319

Guidance to EN-2-c

320
321
322
323
324

The organization may find it difficult to consistently report the breakdown between purchased
electricity non-renewable and renewable sources across multiple countries due to variations inaccounting methods. In this case, contractual instruments (i.e., energy attribute certificates, powerpurchase agreements, and green electricity products) can provide information on the required
breakdown.

325
326
327

Organizations can use contractual instruments to report on EN-2-c if they are available in the markets
where they operate. However, these contractual instruments are expected to be assessed against
specific quality criteria to ensure consistency and credibility (see EN-2-e for further information).

328

Guidance to EN-2-e

329

This requirement covers EN-2-a to EN-2-d.

330

The organization should:

331
332
333
334
335
336
337
338
339
340
341
342
343
344
345
346
347

•
•

•

apply conversion factors consistently for all data disclosed;
use conversion factors that best represent the specific energy content of the fuel to convert
to joules, watt-hours, or multiples (for example, when reporting on energy consumption frombituminous coal, the organization should use conversion factors for bituminous coal insteadof generic coal);describe the reasons why the standards, methodologies, assumptions, and calculation
tools used were chosen.

When the organization reports information specified in EN-2-c using data from contractual
instruments (market-based method), the following quality criteria apply, which are built on the
GHG Protocol Scope 2 Guidance:••

Contractual instruments must convey the GHG emission rate attribute associated with
the MWh produced. Attributes are defined as descriptive or performance characteristics
of a particular generation resource. Each contractual instrument must be the only
source of an GHG emission rate attribute claim associated with its quantity of energy
generation.
A contractual instrument must be tracked and redeemed, retired, or canceled by or on
behalf of the reporting organization.

Page 11 of 22

348
349
350
351
352
353
354
355
356

•

Contractual instruments must have temporal and physical connections to theirassociated energy consumption by demonstrating that they are:o sourced from a region reasonably linked to where it is applied, preferably fromthe same grid market;
o issued and redeemed as close as possible to the energy consumption period towhich the contractual instrument is applied; or based on certifications that
demonstrate energy users may have benefitted from zero emissions electricity
during the same hour to match all of their consumption on a 24-hours a day,seven days a week basis.

357
358
359

See the GHG Protocol Scope 2 Guidance for further information on the quality criteria for grossScope 2 GHG emissions accounting following the market-based method and how to support
accurate accounting if the organization cannot meet the Scope 2 quality criteria.

360
361
362

In addition, and if applicable, the organization should disclose which types of market-based
contractual instruments it uses (e.g.., power purchase agreements, utility green tariffs,
unbundled certificates) and the percentage of purchased electricity covered by each instrument.

363

The organization can report additional information on its contractual instruments, for example:

364
365
366
367
368
369
370

•
•
•
•

The date that the renewable generation facility was commissioned or repowered.
Whether the renewable generation facility receives government subsidies or othersupport.
The length of the contract for the contractual instruments.
Whether the contract was signed prior to the investment decision to build the renewablegeneration facility.

371

Table 1. Example template for presenting information for EN-2-a, EN-2-b and EN-2-c

372
373
374
375
376
377

Table 1 provides examples of how the organization can present information on energy consumption.
Examples of activities are manufacturing processes and operating office equipment. Examples ofsources include biofuel (renewable fuel source), natural gas (non-renewable fuel source), wind andsolar (self-generated renewable electricity source). ‘N.A.’ means ‘not applicable’. The organization
can amend the table according to its practices and report additional information, such as additional
activities or additional sources.
From renewablesources
Source 1…

From non-renewablesources

Total…

Source 1

Activity 1

Fuel
consumption

Activity …

Total
Activity 1

Electricity
Selfgenerated
renewable
electricity
consumption

Activity …
Activity 1

Heating

Activity …

N.A.

Activity 1

Cooling
Steam

Activity …
Activity 1

Page 12 of 22

Activity …

Total
Electricity
Purchased
electricity
consumption

Heating
Cooling
Steam

Total
378

Page 13 of 22

380

Disclosure EN-3 Upstream and downstream energy
consumption

381

REQUIREMENTS

382

The organization shall:

383
384
385
386
387

a. report significant energy consumption upstream and downstream of its value chain injoules, watt-hours, or multiples, and a breakdown by each upstream and downstream
category;b. report standards, methodologies, and assumptions, including the source of conversion
factors and calculation tools used.

388

GUIDANCE

389
390

This disclosure covers energy consumption from activities outside the organization, upstream anddownstream of its value chain.

391
392
393

Quantifying energy consumption from non-renewable sources upstream and downstream in theorganization’s value chain can provide a basis for calculating Scope 3 GHG emissions in DisclosureGH-3 of GRI CC Climate Change 20xx.

394

Guidance to EN-3-a

395
396

The organization can identify significant energy consumption upstream and downstream in the value
chain by assessing whether an activity’s energy consumption:

379

397
398
399
400
401
402
403
404
405
406
407

•
•
•
•
•
•
•

contributes substantially to the organization’s total anticipated energy consumption
upstream and downstream in the value chain;offers potential for reductions the organization can undertake or influence;
contributes substantially to climate change as high-emitting activities;
is deemed relevant by stakeholders, such as customers, suppliers, investors, or civil society
organizations;
results from outsourced activities previously performed in-house or that are typically
performed in-house by other organizations in the same sector;
has been identified as substantial for the organization’s sector;
meets any additional criteria for determining relevance developed by the organization ororganizations in its sector.

408
409
410

When reporting the breakdown by upstream or downstream category in the organization’s value
chain the organization can refer to the GHG Protocol Corporate Value Chain (Scope 3)
Accounting and Reporting Standard for the following categories:

411
412
413
414
415
416
417
418
419
420
421
422
423
424

Upstream categories
1. Purchased goods and services
2. Capital goods
3. Fuel- and energy-related activities (not included in Disclosure EN-2)
4. Upstream transportation and distribution
5. Waste generated in operations
6. Business travel
7. Employee commuting
8. Upstream leased assets
Downstream categories
9. Downstream transportation and distribution
10. Processing of sold products
11. Use of sold products

Page 14 of 22

425
426
427
428

12. End-of-life treatment of sold products
13. Downstream leased assets
14. Franchises
15. Investments

429
430
431
432
433
434
435
436

Organizations should report for which of the 15 categories estimations are used, if estimations areused to report upstream and downstream energy consumption under EN-3-a. In that case,organizations should report also the percentage of data estimated for each category.
If the organization does not report the energy consumption assessed as significant for a particular
category, it is required to provide a reason for omission. Where data cannot be reported because it isunavailable or incomplete the organization is required to specify which information is unavailable orincomplete and why, and describe the steps being taken and the expected time frame to obtain theinformation. See Requirement 6 in GRI 1 Foundation 2021.

437
438

The organization should report energy consumption separately for non-renewable sources andrenewable sources.

439

Guidance to EN-3-b

440
441
442

The organization should describe the reasons why the standards, methodologies, assumptions, andcalculation tools used were chosen.

Page 15 of 22443

Disclosure EN-4 Energy intensity

444

REQUIREMENTS

445

The organization shall:

446
447

a. report energy intensity ratio(s), including the specific metrics (the denominators) chosen
to calculate the ratio(s);448b. report whether the energy intensity ratio(s) include energy consumption:

449

i.

within the organization;

450

ii. upstream and downstream in the organization's value chain;

451
452

iii. within the organization and upstream and downstream in the organization'svalue chain;

453
454

c. report types of energy consumption included in the intensity ratio(s), whether fuel,electricity, heating, cooling, steam, or all.

455

GUIDANCE

456
457
458

Energy intensity ratios define energy consumption in the context of an organization-specific metricand are obtained by dividing the energy consumption (the numerator) by organization-specific metrics(the denominator).

459
460

These ratios express the energy required per unit of activity, output, or any other organization-specificmetric.

461
462
463
464

The organization should report this disclosure with absolute data on energy consumption reported in
EN-2 and EN-3. Disclosing energy intensity ratios can help stakeholders understand theorganization’s efficiency in relation to its sector while supporting energy reduction and efficiency
investments.

465

See additional references [1] and [3] in the Bibliography.

466

Table 2. Example template for presenting information on energy intensity ratio(s)Energyintensity
ratiosEnergyTypes ofconsumptionenergywithin/in the
consumption
value chain

Specific
metricReportingperiod (1)Reportingperiod (2)Reportingperiod (3)

1
2
3
467
468

Guidance to EN-4-a

469
470

Where it aids transparency or comparability over time, the organization can provide a breakdown ofenergy intensity ratio(s) by:

471
472
473
474
475
476

•
•
•
•
•

business unit or facility;
country;
type of source (see definitions for the listing of non-renewable sources and renewablesources);type of activity;
each upstream and downstream category.

Page 16 of 22

477
478
479
480
481
482
483
484
485

Organization-specific metrics (denominators) can include, but are not limited to:
•
•
•
•
•

units of product;
production volume (such as metric tons, liters, or MWh);size (such as m2 floor space);
number of full-time employees;
monetary units (such as revenue or sales).

Relevant denominators will differ between industries or even among business units within an
organization. Therefore, the organization should choose a denominator relevant to its industry andaligned with current industry standards.

Page 17 of 22486

Disclosure EN-5 Reduction of energy consumption

487

REQUIREMENTS

488

The organization shall:

489
490
491

a. report the reduction of energy consumption achieved as a result of conservation andefficiency initiatives, in joules, watt-hours, or multiples, excluding reductions resulting
from other factors;

492
493

b. report types of energy included in the reduction, whether fuel, electricity, heating, cooling,steam, or all;

494
495

c. report whether the energy reduction occurs within the organization or in which one of
upstream and downstream categories of its value chain;

496
497

d. report whether energy reduction is estimated, modeled, or sourced from direct
measurements and, if estimations or modeling is used, disclose the methods;

498
499

e. report the base year or baseline for calculating reductions in energy consumption,
including the rationale for choosing it;

500

f.

501

GUIDANCE

502
503

When reporting how it manages this topic, the organization is required to include energy-related
targets, as per Disclosures 3-3 in GRI 3: Material Topics 2021 and EN-1.

504

Guidance to EN-5-a

505
506

The organization should prioritize disclosing energy reductions achieved as a result of conservationand efficiency initiatives implemented in the reporting period.

507

Energy conservation and efficiency initiatives can include:

508
509
510
511

report standards, methodologies, assumptions, and calculation tools used.

•
•
•
•

process redesign;
conversion and retrofitting of equipment;changes in behavior;
operational changes.

512
513

The organization can also provide a breakdown of energy consumption reductions by individual orgroup initiatives.

514
515

Examples of other factors include reduced production capacity or outsourcing, changes inorganizational boundaries, and weather fluctuations.

516
517

The organization should report reductions of energy consumption in percentage compared to thebase year or baseline, in addition to reporting reductions as required in EN-5-a.

518

Guidance to EN-5-b

519
520

The organization can report reductions in energy consumption by combining energy types orseparately for fuel, electricity, heating, cooling, and steam.

521

Guidance to EN-5-c

522
523

The organization can refer to the GHG Protocol Corporate Value Chain (Scope 3) Accounting andReporting Standard for the following categories:

524
525
526

Upstream categories
1. Purchased goods and services
2. Capital goods

Page 18 of 22

527
528
529
530
531
532
533
534
535
536

3. Fuel- and energy-related activities (not included in Disclosure EN-2)
4. Upstream transportation and distribution
5. Waste generated in operations
6. Business travel
7. Employee commuting
8. Upstream leased assets

537
538
539
540
541

11. Use of sold products
12. End-of-life treatment of sold products
13. Downstream leased assets
14. Franchises
15. Investments

542
543
544
545

Organizations should consider the whole life cycle of the products they manufacture and release on
the market. This is particularly important for products and services with high energy consumption
during their use phase due to their potential to affect energy demand, such as electronic equipment
and vehicles.

546
547
548

Where applicable, the organization should include, under this requirement, the reporting of reductions
in energy requirements during the use phase of sold products and services achieved during thereporting period.

549

Guidance to EN-5-f

550

This requirement covers EN-5-a to EN-5-e.

551
552

The organization should describe the reasons why the standards, methodologies, assumptions, andcalculation tools used were chosen.

Downstream categories
9. Downstream transportation and distribution
10. Processing of sold products

Page 19 of 22

553

Glossary554
555This glossary provides definitions for terms used in this Standard. The organization is required toapply these definitions when using the GRI Standards.

556
557
558

The definitions included in this glossary may contain terms that are further defined in the complete
GRI Standards Glossary. All defined terms are underlined. If a term is not defined in this glossary or in
the complete GRI Standards Glossary, definitions that are commonly used and understood apply.

559

base year

560
561
562
563

historical datum (a specific year or an average over multiple years) against which a measurement istracked over time
Source: World Resources Institute (WRI) and World Business Council for Sustainable Development(WBCSD), GHG Protocol Corporate Accounting and Reporting Standard, Revised Edition, 2004; modified.

564
565

baseline

566

starting point used for comparisons

567
568

Note: In the context of energy reporting, the baseline is the projected energy consumption in theabsence of any reduction activity

569
570

conservation and efficiency initiative

571
572

organizational or technological modification that allows a defined process or task to be carried out
using less energy

573
574

Examples: conversion and retrofitting of equipment such as energy-efficient lighting, elimination of
unnecessary energy use due to changes in behavior, process redesign

575
576

energy reduction

577

amount of energy no longer used or needed to carry out the same processes or tasks

578
579

Note: Energy reduction does not include overall reduction in energy consumption from reducing
production capacity or outsourcing organizational activities.

580
581

human rights

582
583
584
585

rights inherent to all human beings, which include, at a minimum, the rights set out in the United
Nations (UN) International Bill of Human Rights and the principles concerning fundamental rights set
out in the International Labour Organization (ILO) Declaration on Fundamental Principles and Rights
at Work

586
587

Note: See Guidance to 2-23-b-i in GRI 2: General Disclosures 2021 for more information on ‘humanrights’.

588
589

Source: United Nations (UN), Guiding Principles on Business and Human Rights: Implementing theUnited Nations “Protect, Respect and Remedy” Framework, 2011; modified

590
591

impactPage 20 of 22

592
593
594

effect the organization has or could have on the economy, environment, and people, including on their
human rights, which in turn can indicate its contribution (negative or positive) to sustainable
development

595
596

Note 1: Impacts can be actual or potential, negative or positive, short-term or long-term, intended orunintended, and reversible or irreversible.

597

Note 2: See Section 2.1 in GRI 1: Foundation 2021 for more information on ‘impact’.

598
599

material topics

600
601

topics that represent the organization’s most significant impacts on the economy, environment, andpeople, including impacts on their human rights

602
603

Note: See Section 2.2 in GRI 1: Foundation 2021 and Section 1 in GRI 3: Material Topics 2021 formore information on ‘material topics’.

604
605

non-renewable energy source

606
607

energy source that cannot be replenished, reproduced, grown or generated in a short time period
through ecological cycles or agricultural processes

608
609
610
611

Examples: coal; fuels distilled from petroleum or crude oil, such as gasoline, diesel fuel, jet fuel, andheating oil; fuels extracted from natural gas processing and petroleum refining, such as butane,
propane, and liquefied petroleum gas (LPG); natural gas, such as compressed natural gas (CNG),
and liquefied natural gas (LNG); nuclear power

612
613

renewable energy source

614
615

energy source that is capable of being replenished in a short time through ecological cycles oragricultural processes

616

Examples: biomass, geothermal, hydro, solar, wind

617
618

sustainable development / sustainability

619
620

development that meets the needs of the present without compromising the ability of future
generations to meet their own needs

621
622

Note: The terms ‘sustainability’ and ‘sustainable development’ are used interchangeably in the GRI
Standards.

623

Source: World Commission on Environment and Development, Our Common Future, 1987

624

Page 21 of 22

625

Bibliography

626
627
628
629
630
631
632
633

Authoritative instruments
1. Intergovernmental Panel on Climate Change (IPCC), Climate Change 2022: Mitigation of Climate
Change. Contribution of Working Group III to the Sixth Assessment Report of theIntergovernmental Panel on Climate Change, 2022.
2. United Nations Framework Convention on Climate Change (UNFCCC), Paris Agreement, 2016

634
635
636
637
638

1

Additional references

2

639
640
641
642
643
644
645

World Resources Institute (WRI) and World Business Council for Sustainable Development(WBCSD), GHG Protocol Corporate Accounting and Reporting Standard, Revised Edition,
2004.
World Resources Institute (WRI) and World Business Council for Sustainable Development(WBCSD), GHG Protocol Corporate Value Chain (Scope 3) Accounting and ReportingStandard, 2011.

3

4

World Resources Institute (WRI) and World Business Council for Sustainable Development(WBCSD), GHG Protocol Scope 2 Guidance. An amendment to the GHG Protocol Corporate
Standard, 2015
World Resources Institute (WRI) and World Business Council for Sustainable Development(WBCSD), ‘Greenhouse Gas Protocol Accounting Notes, No. 1, Accounting and ReportingStandard Amendment’, 2012.

Page 22 of 22