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10 Danir GHG inventory report 2023 | CHAPTER 3

3.3.1 SCOPE 2: LOCATION-BASED ALLOCATION METHOD
The location-based allocation method means that the emission factor of the purchased electricity is based on
the power grid’s total production emissions. In this method, no account is taken of whether a company chooses
to buy origin-labelled electricity. For Danir, the location-based allocation method means that the emission
factor reflects the average emissions from country-specific electricity mix. For the Nordic countries, emissions
factors were taken from the Nordic electricity mix.

3.3.2 SCOPE 2: MARKET-BASED ALLOCATION METHOD
In the market-based allocation method, trade in origin-labelled electricity is accounted for. The emission factor
for origin-labelled electricity production is assigned to the buyer, and other electricity delivery is assigned an
emission factor based on the production and delivery that remains after origin-labelled delivery has been excluded,
known as the residual mix. In cases where Danir has bought non-origin-labelled electricity, the residual mix for
the specific company is applied. Origin-labelled renewable electricity from solar, wind, and hydropower has no
emissions in the production phase. Thus, these energy sources do not generate emissions that are allocated to
Scope 2 according to the market-based allocation method. Emissions from origin-labelled electricity falls under
Scope 3, energy and fuel related activities and depends on energy source.

3.3.3 PURCHASED HEATING AND COOLING
Emissions from combustion for district heating are reported in Scope 2. In cases where origin labelled district
heating has been purchased, specific emission factors has been used according to the market-based allocation
method. Some companies within the Group use electricity instead of district heating to heat their offices.
Emissions from heating with electricity is included in the electricity reporting.

District cooling is used for cooling in many of the Swedish offices. In Sweden, district cooling often comes either
from free cooling from a cold-water source, from residual heat from e.g., industry via an absorption cooling
machine process, or as a residual from electricity and heat production. Therefore, no emissions are allocated
to district cooling in Sweden, as the emissions are allocated to the primary source, except in cases where the
emission factor has been specified. For the offices that use electricity for cooling, the emissions are included in
the electricity report. Emissions from refrigerant leakage is accounted for in Scope 1.

3.4 Data collection methodology for Scope 3

Scope 3 includes the following categories: purchased goods and services, capital goods, fuel and energy related
activities, waste generated in operations, business travel, employee commuting, and leased assets. The data
collection methodology for each category is described below.

3.4.1 PURCHASED GOODS AND SERVICES
This category includes the production of purchased goods and services. For Danir, the category includes
office-related purchases and electronics. Capital goods, such as furniture and printers, have been included under
purchased goods and services.

3.4.1.1 Office-related purchases
The emissions from the category office-related purchases are based on two of the Danir Group's offices – Sigma
Industry East North in Linköping/Norrköping’s data for 2021 and Sigma Industry East North in Stockholm’s data
for 2022 – and then scaled up to the number of employees in the Group. This was done because the purchases
across offices are found to be similar because Danir Group largely offers consulting services. Office supplies,
including copy paper and notepads, are assumed to be used to a limited extent and purchased by the companies
only when needed and is therefore not included in this GHG-inventory report.