How to buy RECs for ESG reporting

For businesses in Singapore that report on sustainability, buying Renewable Energy Certificates (RECs) is often less about making a single purchase and more about making sure the certificates fit the reporting purpose. The country of origin, generation technology, vintage, registry status, and retirement records can all affect how useful a REC is for a particular claim or framework.

Using RECs in ESG reporting starts with understanding what your organisation needs to report and when. In this article, we explain the procurement process, the difference between one-time and recurring purchases, and the checks that can help businesses use certificates more confidently in sustainability reporting.

A REC represents the renewable attributes associated with one megawatt-hour of electricity generated from an eligible renewable source. The certificate is separate from the physical electricity delivered through the grid. Buying a REC gives the buyer the right to claim the associated renewable energy attribute once the certificate is properly redeemed or retired.

This distinction matters for ESG teams because certificates are evidence for a claim, not direct delivery of renewable electrons to a specific facility. In emissions reporting, RECs are applied to the market-based Scope 2 figure; the location-based figure still reflects the average grid mix.

In the renewable energy certificate market, buying and selling renewable energy credits transfers ownership of these attributes, so a certificate’s value depends on how well its records match the reporting framework being used. In Singapore, SS 673, the national code of practice for RECs, sets out how certificates should be issued, tracked and used for renewable energy claims.

Before procuring RECs for ESG reporting, establish the period, facilities, and electricity consumption that the certificates are meant to cover. Businesses buying RECs often start with billed electricity use and convert the relevant consumption into megawatt-hours so the certificate volume matches the intended claim. For example, 180,000 kWh on your bills is 180 MWh, or 180 RECs to match all of it.

The reporting purpose should also guide the purchase. A business preparing an annual sustainability disclosure may have different timing or documentation needs from one working towards a specific corporate target. In Singapore, for instance, all SGX-listed companies must report Scope 1 and 2 emissions from FY2025. Matching certificates to the reporting period helps avoid purchases that fall outside the period they are meant to support.

REC procurement for ESG reporting also depends on how frequently your organisation needs certificates. A one-time purchase can suit retrospective reporting or a defined sustainability requirement. It lets a business procure a set volume once it knows its consumption and reporting scope.

Recurring procurement can suit ongoing programmes. Rather than arrange a new purchase each reporting cycle, a business can set monthly or annual volumes and adjust them as needs change. A renewable energy provider can also help coordinate certificate purchases with electricity contracts, reporting cycles, and sustainability planning. For example, at Flo, we match 100% of your business' electricity usage with regional Renewable Energy Certificates (RECs) and redeem them on your behalf.

The REC certificates selected should match more than the required volume. Buyers should review where the renewable electricity was generated, the technology used, the generation year (vintage), and the registry that issues and tracks each certificate.

Framework-specific requirements also matter. Geography, market boundaries, eligible technologies, and acceptable vintages can vary, so businesses should check the rules that apply to their reporting programme rather than assume any REC will be suitable. Customers, auditors, investors, or procurement teams may later review the resulting claims.

In Singapore, the key question is often whether you need local certificates. SS 673 accepts RECs from elsewhere in Southeast Asia when local supply is not possible, but RE100 requires Singapore-generated RECs for Singapore consumption. RE100 also generally expects certificates from facilities commissioned or repowered within the last 15 years. Price is also a factor here as local RECs are often much more expensive to procure than regional RECs from neighbouring countries like Vietnam and Thailand.

A practical approach to RECs in ESG reporting includes what happens after procurement. Certificates used for a claim should be redeemed or retired so their attributes cannot be claimed again. For market-based reporting under the GHG Protocol, qualifying contractual instruments should be tracked and redeemed, retired, or cancelled by or on behalf of the reporting entity.

Registries used in Singapore, such as Xpansiv I-REC and TIGR, give each certificate a unique serial number. Keep registry records and retirement evidence, along with information such as volume, vintage, source, and beneficiary details. This gives the reporting team a clearer audit trail and reduces the risk of duplicate or unsupported claims.

At Flo Energy, we source, verify, and redeem RECs based on country of origin, technology, vintage, and reporting requirements. For RE100 companies, we procure and redeem local Singapore RECs, and we can source certificates for other frameworks such as CDP, GRI, SBTi and Green Mark. Every Flo electricity plan also matches 100% of usage with regional RECs that adhere to SS 673, redeemed on your behalf at no extra cost. This can reduce procurement administration, help avoid mismatches between certificate attributes and reporting needs, and keep supporting records organised across reporting periods