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Energy Consumption Outside the Organization (G4-EN4) Methodology

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In 2018, the GRI G4 Sustainability Reporting Guidelines were superseded by the GRI Sustainability Reporting Standards (GRI standards). This is the methodology for G4-EN4 which has been superseded by GRI 302-2 - the current GRI 302-2 metric can be found here. 

About

​​This metric is based on the Global Reporting Initiative (GRI) G4 Guidelines. It covers the requirements of Indicator G4-EN4​ - 'Energy consumption outside of the organization'

​Energy consumption occurs throughout organization’s upstream and downstream activities associated with its operations, including the use of sold products by consumers and the end-of-life treatment of sold products after consumer use.

Quantifying energy consumption outside of the organization provides a basis for calculating some of the relevant other indirect (Scope 3) GHG emissions in Indicator G4-EN17. Tracking and reducing energy consumption outside of the organization may improve the overall life-cycle performance of products and services, and be part of a comprehensive design program.

Methodology

​​This metric is looking for total amount of energy consumption (in gigajoules) outside of the organization:

For WikiRate researchers:

Companies who align reports to GRI’s Sustainability Reporting Standards often include a GRI Content Index or Annex where GRI disclosures, with GRI codes, are listed.

  • Use the GRI Index, CTRL F, Command F or search button on source preview to search for this index and metrics within the report

  • Use G4 codes, G3 codes or keywords to quickly find values, keeping in mind that some companies report on the metric using different terms, e.g. G4-EN4, EN4 or energy consumption

  • Always check the metric question and methodology for the unit of measure or currency - researchers may need to carry out calculations or conversions before entering the final metric value

  • Add comments documenting exactly where within the source you found the information (page number) and include details of simple or complex calculations or conversions made to determine the metric value

  • If you are unable to locate a metric value in a source you can search for additional sources where the data is available and add a new source

Further guidance on how to research values for GRI-based metrics is available here, including detailed guidance on adding, editing and checking metric values.

Global Reporting Initiative compliance guidance for companies:

To calculate the energy consumption outside of the organization - G4-EN4:​

Assess which of its activities cause the energy consumption outside of the organization itself, and assess the amounts involved. For this Indicator, exclude energy consumption reported in Indicator G4-EN3.

When determining the relevance of these activities, identify whether the activity’s energy consumption:

  • Contributes significantly to the total anticipated energy consumption outside of the organization

  • Offers potential for reductions that could be undertaken or influenced by the organization

  • Contributes to the organization’s risk exposure to climate change-related risks such as financial, regulatory, supply chain, product and customer, litigation, and reputational risks

  • Is deemed material by key stakeholders (such as customers, suppliers, investors, or civil society)

  • Results from outsourced activities which were previously performed in-house, or activities that are typically performed in-house by other organizations in the same sector

  • Has been identified as significant in sector-specific guidance

  • Meets any additional criteria for determining relevance, developed by the organization or by organizations in its sector

 

Identify relevant upstream or downstream energy consumption in the following categories and activities:

Upstream

  1. Purchased goods and services

  2. Capital goods

  3. Fuel- and energy- related activities (those that are not included in Indicator G4-EN3)

  4. Upstream transportation and distribution

  5. Waste generated in operations

  6. Business travel

  7. Employee commuting

  8. Upstream leased assets 
    Other upstream


Downstream

  1. Downstream transportation and distribution

  2. Processing of sold products

  3. Use of sold products

  4. End of life treatment of sold products

  5. Downstream leased assets

  6. Franchises

  7. Investments
    Other downstream


The upstream/downstream categories and activities above including their numbering correspond to the categories and activities documented in the WRI and WBCSD 'GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard'. The numbering has been maintained consistent for the ease of reference between G4 and the WRI and WBCSD 'GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard'. Calculate or estimate the amount of energy consumed in the above relevant categories and activities.

Reporting on this Indicator should include the following contextual information as a comment to the metric value:

  • ​G4-EN4-b:

    standards, methodologies, and assumptions used.

  • ​G4-EN4-c: the source of the conversion factors used.

  • If possible report energy consumption separately for non-renewable and renewable energy sources.