MERLIN Properties Annual Report 2022

90 | Annual report | 2022 (1) Market-based method calculates emissions based on the electricity that organizations have chosen to purchase. The difference is that the market-based method takes into account the use of renewable energy outside the consumption location as a generator of 0 carbon emissions, while the location-based method assigns the average local grid emission factor to renewable use outside the consumption location. Decarbonisation of MERLIN Properties’ portfolio MERLIN’s progress over the last few years has enabled the Company to define its emissions reduction strategy or “Pathway to Net Zero” for 2030, thus getting a head start on the European strategy for decarbonisation of the economy and ensuring the present and future survival of the Company and its assets. MERLIN’s Pathway to Net Zero is a roadmap that outlines the way to improve not only the performance of the Company and its assets under operational control, but also the behaviour of the key agents responsible for MERLIN’s emissions along its value chain, including suppliers and tenants. In 2022, MERLIN updated the criteria used for the calculation of emissions, using the market-based method (1) as established in the GHG Protocol guidelines. Market-based Scopes 1 y 2 Scope 1 Scope 2 Market-based Intensity tCO 2 eq/m 2 Scope 3 Absolute 2020 2,541 528 0.002 3,069 n/d 2021 Absolute 2,676 793 0.002 3,469 n/d 2022 Absolute 2,670 59 0.002 2,729 n/d