Custom emission factors are used when standard emission factor sets such as the US EPA, UK DEFRA, IPCC, or other EF sets do not cover calculation needs. Using custom emission factors also allows for higher accuracy and detail of emissions from specific sources or activities.
How Are Custom Emissions Factors Used for Calculating GHG Emissions in FEM 2024?
The Higg Facility Environmental Module (Higg FEM) 2024 allows facilities to report custom market-based greenhouse gas (GHG) emission factors for transparency purposes, but these values are not used in any FEM calculations.
Unlike previous FEM versions, where user-provided market-based factors could affect Scope 2 emissions, FEM 2024 calculates all Scope 2 emissions solely based on location-based grid factors derived from the International Energy Agency (IEA). This ensures consistency across all facility assessments.
How Do Custom Emission Factors Work in FEM 2024?
Facilities may provide a custom GHG emissions factor (kg CO₂e per kWh) if they purchase electricity, district heating, or cooling under a Power Purchase Agreement (PPA) or another contractual arrangement. This data is for reporting transparency only and does not affect the calculated emissions in FEM 2024.
Custom Emission Factors Are Not Used in FEM Calculations
Regardless of the custom factor provided, FEM 2024 only calculates Scope 2 emissions using default national grid emission factors from the IEA.
Even if a facility provides a lower emission factor based on a renewable energy contract, their reported emissions will not change in the FEM assessment.
Reporting Requirements for Custom Factors
If a facility chooses to enter a custom factor, they must:
- Specify the emission factor source (e.g., PPA contract, supplier data).
- Upload supporting documentation, such as utility invoices or emissions certificates.
- Provide a direct link or reference to the data source.
Verification Considerations
Custom factors must be clearly documented, but they are not verified for accuracy in the same way as calculated emissions.
Facilities that enter unrealistic values (e.g., zero emissions for non-renewable sources) will not see any impact on their FEM GHG totals since these figures are purely informational.
Why Did FEM 2024 Remove Market-Based Factors From GHG Calculations?
Data Quality Issues: Many facilities incorrectly entered national grid factors or unverified numbers, causing inconsistencies in Scope 2 reporting.
Alignment With Best Practices: The FEM now strictly follows a location-based emissions calculation approach, aligning with GHG Protocol guidance and global reporting standards.
Preventing Misrepresentation: Some facilities previously used market-based factors to artificially lower their reported emissions, making comparisons between facilities unreliable.
Key Takeaways
- Custom market-based emissions factors are reported for transparency only and are not used in FEM 2024 GHG calculations.
- Scope 2 emissions are calculated using only location-based grid emission factors from the IEA.
- Facilities may provide supporting documentation for market-based factors, but these values will not impact their FEM GHG totals.
- This change improves consistency and prevents data manipulation, ensuring facilities are assessed on a comparable basis.